Gatorade to expand advertising
the sum it currently invests in sponsoring the National Football
League, according to reports yesterday.
The PepsiCo unit is said to be close to a new eight-year deal worth $46 million a year for the rights to use the NFL logo and feature its sports drink on the playing field, a source familiar with the talks told Reuters.
Advertising of sports drinks by leading beverage makers has had a significant role to play in the success of this category of the beverage market, and helped many me-too products flood the global market.
PepsiCo's sports and energy drink products account for nearly a third of world sales by virtue of its dominance in the Americas. Coca-Cola, maker of Powerade, is the second largest company and takes around 15 per cent, while Japan's Otsuka (manufacturer of Pocari Sweat sports drink) is the largest single player in Asia and the only other company to hold more than 10 per cent of the global market, according to figures from Canadean.
The total value of the rumored deal is thought to be worth $500 million, including additional fees for marketing and television advertising, the source said.
The deal has gained widespread press coverage as it would mark NFL's biggest take for sports rights fees.
Gatorade has sponsored NFL since 1983 and has been owned by PepsiCo since 2001. Under the global number two beverage company sales of Gatorade have increased, with PepsiCo recently reporting an 11 per cent rise in North American beverage sales, helped by the energy drink.
