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Pepsi to replace Coke as the NBA's official beverage

Published 04/13/2015, 07:36 PM
Updated 04/13/2015, 07:44 PM
© Reuters.  The NBA announced a major marketing deal with PepsiCo. on Monday

Investing.com -- When the NBA Playoffs begin this weekend, fans throughout the country might be exposed to Gatorade's iconic "Be Like Mike," commercial more than they had hoped for.

For more than 30 years, Gatorade has served as a longstanding advertising partner with the NBA. On Monday, PepsiCo Inc. (NYSE:PEP) held a major news conference to announce an extension of the partnership.

With the deal, Pepsi Co. will replace Coca-Cola Company (NYSE:KO) as the league's exclusive beverage ending a 28-year relationship. Pepsi believes it has the branding power to showcase more than 20 products to the NBA, including: Pepsi and Mountain Dew beverages, Lay's potato chips, Doritos, Tropicana and the aforementioned Gatorade sports drinks.

"Gatorade is woven into the fabric of the NBA," Pepsi Co. CEO Indra Nooyi said at the joint press conference with the NBA in New York. "Now, we will bring our other brands into the league."

"We look forward to offering the NBA an all-access pass into everything our company has to offer."

Mountain Dew might be the greatest beneficiary of the partnership. The soft drink will sponsor 3-on-3 tournaments in six cities across the country, NBA commissioner Adam Silver announced. The NBA will also partner with PepsiCo's Aquafina to sponsor a wellness initiative aimed at improving the health and well-being of youngsters in its Junior NBA program.

Shares in Pepsi Co. fell slightly by 0.67 or 0.70% to 95.53 on Monday.

"I know from the many conversations that Indra and I have had over the last several years that we have a shared commitment to innovation, to excellence, to the health of our fans and customers and most importantly to basketball," Silver said.

Separately, Coca-Cola announced a new marketing deal with Major League Soccer on Monday.

Shares in Coca-Cola fell 0.18 or 0.44% to 40.70.

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