Justin Timberlake speaks during the press conference for the Pepsi Super Bowl LII Halftime Show on February 1, 2018 in Minneapolis, Minnesota.
Timothy A. Clary | AFP | Getty Images
Coca-Cola and PepsiCo won’t be promoting their lemonades of the same name with Super Bowl commercials this year.
The decades-long rivalry between the two brands of cola is often brought to the fore with duel advertising during the annual NFL championship game. But this year both will put it on hold. Variety reported the news first.
Pepsi is replacing its traditional Super Bowl commercial slot with a new campaign leading to its halftime show while playing with The Weeknd. This year marks the 10th anniversary of Pepsi’s sponsorship of the Super Bowl halftime show. But Mtn Dew and Frito-Lay, both owned by PepsiCo, have plans for in-game ads.
In a statement to CNBC, Coke said it will toast other brands from the sidelines this year.
“This difficult decision was made to ensure we were investing in the right resources in these unprecedented times,” said spokeswoman Kate Hartman.
In 2019, it was decided to run an ad before the Super Bowl game rather than during the game. But lately the beverage giant has been seeing the effects of the coronavirus pandemic. Sales declined 13% in the first nine months of 2020 as sales were missed at restaurants, gas stations, and office buildings. PepsiCo receives a smaller proportion of its sales from home.
Coke’s shares are down 14% over the past year for a market value of $ 210 billion. PepsiCo’s stock is up 2% over the same period, bringing it to a market value of $ 197 billion.