Blog: Katy AskewPepsiCo secures NBA sponsorship deal

Katy Askew | 14 April 2015

PepsiCo has honed in on a sponsorship deal with the National Basketball Association, replacing current sponsor and chief soft drinks rival The Coca Cola Co. 

Succeeding long-standing partner Coke might be seen as a slam dunk for PepsiCo but the group is likely to have paid a hefty price. The company describes the deal as "expansive" and, although terms aren't being disclosed, on first glance at the press release I read "expensive".

Nevertheless, as marketing moves go, this is a big fish. It will raise PepsiCo's consumer reach particularly in the US where sales have been sluggish but also in various international markets where the sport has gained traction. Food and beverage company Tingyi, PepsiCo’s partner in China, will be the exclusive partner of the NBA in that market through its Master Kong brand. 

Mountain Dew will serve as the lead brand in North America. However, in line with PepsiCo's "better together" strategy, the company believes its snack brands also stand to benefit. In particular, the group has singled out finger food is popular around game time and will push Doritos and Ruffles chips through the tie-up.

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