Pepsi to re­place Coke in NBA mar­ket­ing deal af­ter 28 years

The China Post - - BUSINESS INDEX & -

The Na­tional Bas­ket­ball trad­ing Coke for Pepsi.

The league said Mon­day that it’s struck a new mar­ket­ing part­ner­ship with Pep­siCo, end­ing a 28-year part­ner­ship with Coca-Cola.

Pep­siCo CEO In­dra Nooyi said dur­ing a press con­fer­ence in New York that the com­pany will bring the power of its port­fo­lio of 22 brands to the NBA. The Pur­chase, New York-based com­pany’s brands in­clude Pepsi, Trop­i­cana, Lay’s, Lip­ton and Dori­tos.

Nooyi pointed out that Pep­siCo Inc. had an ex­ist­ing re­la­tion­ship with the NBA through Ga­torade, which has been a part­ner with the league for more than 30 years. The ex­ec­u­tive said that Moun­tain Dew will lead

As­so­ci­a­tion

is the NBA’s mar­ket­ing strat­egy.

The part­ner­ship will cover North Amer­ica and China, where the pop­u­lar­ity of the NBA is grow­ing.

The Coca-Cola Co. said in a state­ment on Mon­day that it “will con­tinue to have a strong pres­ence within bas­ket­ball cul­ture through our re­la­tion­ships with iconic play­ers.” The world’s big­gest bev­er­age maker also said that it will con­tinue to have re­la­tion­ships with in­di­vid­ual teams and venues, which means some are­nas will still serve Coke prod­ucts.

Separately, Coca-Cola an­nounced Mon­day that it signed a mul­ti­year part­ner­ship with the U.S. Soc­cer Fed­er­a­tion and Ma­jor League Soc­cer. The deal also in­cludes a re­newal of Coca-Cola’s part­ner­ship with the Mex­i­can Na­tional Team’s U.S. Tour.

Coca-Cola will serve as the of­fi­cial bev­er­age part­ner across the non- al­co­holic bev­er­age cat­e­gory for U.S. Soc­cer and the Mex­i­can Na­tional Team’s U.S. Tour. The ex­clu­sive as­so­ci­a­tion with MLS will in­clude both soda and wa­ter brands.

Coca-Cola, which also makes Sprite, Powerade and Vi­ta­m­in­wa­ter, said in Oc­to­ber that it planned to cut costs by US$3 bil­lion a year through a va­ri­ety of mea­sures, such as re­struc­tur­ing its global sup­ply chain. The At­lanta-based com­pany said much of the sav­ings would be rein­vested into mar­ket­ing.

Shares of Pep­siCo shed 49 cents to US$95.71 in af­ter­noon trad­ing, while Co­caCola’s stock fell 11 cents to US$40.77.

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