Category killer Pepsico mops up NFL snack and beverage sponsorships

AT FIRST GLANCE, the cola wars entered a new dimension this week as Pepsico extended its sponsorship of the NFL in a 10-year deal representing an investment of around $2.3bn. The reality is though, that Pepisco is a different beast from the one that usurped Coca-Cola from its position as NFL soft-drink sponsor in 2002. The latest deal, a 50% uplift on its last renewal, encompasses a much wider range of brands including Tropicana fruit drinks and Quaker Oats cereal bars in addition to Pepsi, Gatorade and Frito-Lay snacks. NFL is reported to receive between $15m and $20m annually for each brand. Coke, with its focus limited purely to beverage brands, would never have been in a position to trump the Pepsico deal which comes amid pressure on the challenger brand to bolster North American sales. The deal is the first since Pepsico announced a 30% increase in US marketing and shows the company’s confidence in NFL to deliver despite a lockout leading to a shorter season. Markets reacted more cautiously however, with the company’s share price off 1.75% on the day.