PepsiCo to replace Coca-Cola as official beverage partner of NBA

On Monday National Basketball Association (NBA) announced that it has reached a new marketing deal with PepsiCo. It will end its 28 year-old marketing partnership with Coca-Cola and make PepsiCo its official beverage partner.

At a press conference with NBA Commissioner Adam Silver, PepsiCo CEO, Indra Nooyi said that her company would bring the power of 22 of its brands to the NBA.

Under NBA logo, PepsiCo has planned new retail and advertising campaigns. In addition to beverages, there will be snacks like Doritos and Ruffles.

The lead brand in the critical North American market for the NBA would be Mountain Dew. It will replace Sprite, Coca-Cola's lemon-lime soda that has been the NBA's official soft drink in the US since 1994. PepsiCo would also promote its Aquafina, Doritos and Ruffles brands to NBA fans across North America.

According to analysts, the deal indicated that PepsiCo has moved into a clear leadership position in the North American sports marketing deals.

Nooyi said that the company has had relationship with the league through Gatorade, which has been partnering with the league for 30 years. She also said that their company would also work with its Chinese partner Tingyi in the basketball league's biggest foreign market.

The new deal will also make PepsiCo the official sponsor of the NBA All-Star Game. However, about half of NBA teams will continue to have contracts with Coca-Cola and sell Coke products in their arenas.

The partnership won't affect marketing involving individual NBA stars, such as LeBron James, who is sponsored by Coke.

Meanwhile, Coca-Cola, in a separate announcement, said that it was teaming up with the US Soccer Federation and Major League Soccer. The multi-year partnership will make the soft-drink giant the official nonalcoholic beverage partner for US Soccer and the Mexican National Team's US tour.