Dive Brief:
- PepsiCo has secured a multiyear commitment with Formula One to showcase three of its brands — Sting Energy, Gatorade and Doritos — at 21 events across the sport’s racing calendar, according to a company release.
- The deal includes TV-visible, track-side advertising, a FanZone activation at 21 races across the world, tickets and hospitality experiences, exclusive marketing rights for the featured brands and exclusive track pouring and product supply rights.
- PepsiCo will also have an official partnership with F1 Sprint and will have involvement in F1 Academy as part of the brand’s commitment to empowering women in sports.
Dive Insight:
PepsiCo’s deal further cements F1 as one of the sports most attractive to marketers. F1 generated $2.04 billion in total sponsorship revenue last year, surpassing the NBA, MLB and NHL, and putting it within striking distance of the NFL’s $2.5 billion, per SponsorUnited data shared with Marketing Dive. The average F1 sponsorship deal is valued at $6.01 million — over eight times higher than the NFL’s average — and the technology category alone accounted for $500 million in sponsorship revenue.
PepsiCo’s deal gives the company an opportunity to introduce its brands to a devoted audience, as F1 has become a global powerhouse with more than 1.6 billion viewers and an active fan base of 826 million people. The move comes as PepsiCo retools its sports and entertainment marketing strategy to take a more holistic approach that “focus[es] more on specific sports or topics, rather than the individual brands under PepsiCo’s umbrella,” per Sports Business Journal.
“Formula 1's unmatched global platform and tremendous growth trajectory align perfectly with our ambitions to accelerate our brands — particularly Sting Energy — on the world stage,” said Eugene Willemsen, CEO, international beverages, PepsiCo, in a release. “Together, we'll deliver bold, innovative experiences that connect with drivers and fans at race venues and well beyond, while also supporting Formula 1's continued expansion to new audiences worldwide in markets where PepsiCo and Sting have a strong presence.”
As part of the agreement, Sting Energy will become the Official Energy Drink of F1. The brand is currently available in 34 markets, including India, Pakistan, Egypt, Morocco, Sri Lanka and Vietnam, and the F1 partnership is expected to elevate its growth.
The brand launched a playful campaign over Memorial Day weekend featuring DJ Armin van Buuren playfully “discovering” that the engines of the sport’s racing cars make a distinct “Stinggg” sound when slowed down and played through his studio equipment.
Meanwhile, Gatorade and Doritos will become the Official Sports Drink and Official Savory Snack, respectively, of F1. Gatorade will also be an Official Partner of F1 Sprint — shorter races that occur at six events in the season — which will include at-event hydration and on-site branding throughout designated Sprint weekends.
