Pepsi taking a pass on Super Bowl

Will Pepsi's decision to sit out Super Bowl XLIV go down in history as a fumble?

By James Dlugosch Dec 17, 2009 3:37PM

Jamie DlugoschCount Pepsi (PEP) with the likes of the NFL's dismal Rams, Lions and Chiefs. The giant's soft drinks aren't going to the Super Bowl, either.


Pepsi's decision to bow out of the big game after a 23-year run is an official choice to focus on a new soda marketing effort built around community service, one a company official told The Wall Street Journal is too hard to explain in a 30-second ad.


Still, the announcement created quite a buzz on advertising and sports-related Websites, and for good reason.


5 Reasons Why Investors Should Drink Up Pepsi Stock


The Super Bowl is a premier advertising event and offers a unique opportunity to expose products to a huge consumer audience. It may be expensive -- some spots are going for $3 million for the 2010 game -- but there is no better way to get your brand in front of so many people.


Speculation about the decision being linked to the economy was rampant. These days, companies don't want to be seen spending gobs and gobs of money at a time when people are hurting.


But hey, the Super Bowl is all about excess, and no one watching would complain. It's the one game where people actually tune in to watch the commercials. And reported recently that the ads were 90% sold out by Thanksgiving, so companies are buying time.


FedEx (FDX) did say today that it was skipping the Super Bowl due to costs, but it's the only company on record with such a choice. And other Pepsi products reportedly will be advertised, further complicating the issue.


It's a bad call by Pepsi, in my opinion. The absence of Pepsi drink ads leaves the door wide open for Coke. And I expect them to take full advantage of the opportunity.


Perhaps Pepsi knows something that we don't, but it's a big risk to walk away from something that previously worked so well for the company.


However, the move by Pepsi to skip Super Bowl XLIV is the kind of risk-taking that tends to be rewarded in our market-based system. Check out 5 Reasons to Buy Pepsi here.


Related Articles:

Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


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.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
266 rated 2
485 rated 3
660 rated 4
586 rated 5
652 rated 6
640 rated 7
504 rated 8
289 rated 9
159 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.