Dive Brief:
- PepsiCo announced 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.
Meanwhile, Major League Soccer and the U.S. Soccer Federation have inked a multi-year partnership with Coca-Cola.
PepsiCo's official announcement can be found here.