Pepsi, Bud Light unite against common enemy
The companies were already close. Now they hope a broad marketing push will steal Super Bowl fans from Coca-Cola.
The companies are teaming up for promotions and in-store marketing that will plug Bud Light, Doritos and Pepsi, according to Advertising Age. The move makes sense given that the two companies are trying to appeal to the same sort of consumer: young males who are sports fans. It seems plausible that these people would snack on chips while drinking beer and soda during the big game. This also makes sense economically.
Both companies, which have worked closely together for years, are trying to reignite interest in their products. Last year, the brewer of Budweiser and Stella Artois reported worse-than-expected third-quarter results as beer sales to U.S. retailers fell 0.4%, as Reuters and others noted. PepsiCo. has lagged Coca-Cola for years in the cola wars, though lately it has made some inroads against its rival.
The companies will tout one-stop shopping for Super Bowl parties. It may not be an easy sell. Pepsi lags Coke and Diet Coke in the soda market. Doritos, made by Pepsi's Frito-Lay, is the best-selling chip. Its sales, however, are under pressure as consumers become more health-conscious. Business Insider noted that companies plan to run ads for Pepsi, Doritos and Budweiser during the game.
"The promotions, which will get heavy play leading up to the Super Bowl, come after the two companies had previously touted snacks such as Doritos alongside beer brands," according to the publication.
In 2009, the two companies announced that they would jointly purchase certain goods and services such as information technology, office supplies and travel. A year later, Anheuser-Busch and PepsiCo. expanded their agreement to include spending on advertising.
A merger between the makers of Bud an Pepsi may never happen since the two companies already are close collaborators, which might make it difficult to find additional savings. However, unless the fortunes of both companies turn around dramatically, pressure for Anheuser-Busch and PepsiCo. to merge will only increase.
Jonathan Berr does not own shares of the listed products. Follow him on Twitter @jdberr.
More on Money Now
- Is college tuition finally shrinking?
I might only drink a half dozen Cokes a year but if offered pepsi or anything AB makes, I'll find some water thanks.
Never cared for Pepsi itself, but years ago when Pepsi had made Josta, I was a fan of that pepsi product.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Equity indices remain in negative territory with the S&P 500 trading lower by 0.4%. Eight sectors find themselves in the red at this time, while the countercyclical telecom services (+0.1%) and utilities (+1.2%) have bucked the trend.
On the flip side, the industrial sector (-0.9%) remains at the bottom of the leaderboard after slipping out of the gate. The top sector component-General Electric (GE 25.52, -0.27)-sports a loss of 1.1%, while transport stocks also ... More
More Market News
The idea of US crude being a shelter from turmoil abroad may not be as far fetched as it seems.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'