Coca Cola Loses NBA Sponsorship to PepsiCo
Published By : 13 Apr 2015 | Published By : QYRESEARCH
PepsiCo, the food and beverages giant announced on Monday that it is all set to become the exclusive food and beverages partner for the National Basketball Association in North America, beginning from the next season. PepsiCo’s announcement will bring to an end the relationship that Coca Cola has had with the league since 1986.
Neither the duration nor the terms of the deal are being revealed at this time. However, a source with information on the matter has said that speaking in terms of the overall investment from PepsiCo, the deal was definitely worth a lot more than NBA’s previous alliance with Coca Cola.
This new deal will also cover the NBA Development League, the WNBA, and USA Basketball. Tingyi, which is a food and beverage company and PepsiCo’s partner in China, will – through its brand Master Kong – become the exclusive partner of the NBA in China.
It is to be noted that even though the NBA had an almost 30 year relationship with Coca Cola, Gatorade boasts of being the league’s oldest relationship. This PepsiCo product started its deal with the league back in 1984.
In recent years, PepsiCo has identified sports as the focus of its marketing strategies. Together with the NBA, PepsiCo is also the official sponsor of the National Football League (NFL), the National Hockey League (NHL), and Major League Baseball. Pepsi has been the lead brand of all these sporting events. Until December, PepsiCo and Major League Soccer had been in partnership. However, according to Bloomberg reports, Coca Cola had bagged the sponsorship with a deal lasting four years.
The major difference with PepsiCo’s partnership with the NBA is that instead of Pepsi, Mountain Dew will be the leading brand.