UPDATE: PepsiCo's official announcement can be found here.
UPDATE: A Coca-Cola company spokeswoman provided the below statement to Food Dive:
"We remain fans of the NBA and have shared remarkable experiences during our 28-year partnership, however we have made the decision not to renew our global contract at the end of the 2014/2015 season. The Coca-Cola Company has committed an incremental $1-billion toward its brands over the next three years, and with this commitment comes the need to focus on the most effective and efficient investments to maximize brand growth. The Company will continue to have a strong presence within basketball culture through our relationships with iconic players. We will also continue to be visible through ongoing relationships with individual teams and venues."
Dive Brief:
- PepsiCo is reportedly announcing later Monday that it will be the exclusive North American food and beverage partner for the National Basketball Association beginning next season, according to Fortune.
- This puts Coca-Cola, which has had a partnership with the NBA since 1986, on the bench.
- The deal is worth much more than Coca-Cola's prior partnership in terms of PepsiCo's overall investment, according to a source reported by Fortune.
Dive Insight:
Fortune notes PepsiCo has amped up sports as a marketing staple recently, as it is the official sponsor of the NHL, NFL, and MLB. This partnership will place Mountain Dew front and center, as opposed to its signature brand.
The NBA has reportedly been looking to work with more than just soda in this arena, perhaps a reason for the move, since PepsiCo, unlike Coca-Cola, offers a food sector.
While teams and players can make their own deals with Coca-Cola or PepsiCo, the latter will probably gain more. Don't fret, Coca-Cola fans: this agreement does not alter food and beverages sold in stadiums.
PepsiCo has been on a roll as of late, with Pepsi surpassing Diet Coke for the No. 2 soda slot in the U.S.
Meanwhile, Major League Soccer and the U.S. Soccer Federation have inked a multi-year partnership with Coca-Cola.