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.
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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.
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