The deal is worth about $160 million over the next five years, according to a source familiar with the negotiations. Pepsi also is likely to continue its Super Bowl-related spending, which would boost the value of the deal to nearly $200 million through 2007.
``When we look at the NFL, we see the NFL truly as America's passion in sports,'' said John Galloway, director of sports marketing at PepsiCo Inc., based in Purchase, N.Y. ``We believe in the power of the NFL.''
The sponsorship allows Pepsi to use the NFL logo on its advertising and promotions. NFL teams split the revenue from national sponsorships.
Besides Pepsi's carbonated soft drinks, the company is putting its Tropicana juices into the deal and renewing its Frito-Lay snack brand as a sponsor. Pepsi's Gatorade sports drink, which it acquired in December 2000 from Quaker Oats, is already an NFL sponsor.
Coke officials said the NFL's price was too high.
``As is the case with many major marketers, we have become increasingly concerned about the trend of escalating costs for national sponsorships,'' Coke spokesman Bill Marks said.
On Tuesday, the NFL signed a five-year deal making Adolph Coors Co. the organization's official beer sponsor. Sports Business Daily reported the Coors' contract value at $300 million. Previously, Miller Brewing and Anheuser-Busch split the beer sponsorship.
Coke has ongoing sponsorship deals with 20 of the league's 32 teams, Marks said. Coke will use the money it saved from the NFL sponsorship to fund youth football programs, he said.
Earlier this week, Pepsi edged Coke for a deal to supply flights on United Airlines. Recently, Atlanta-based Delta Air Lines renewed its deal with Coke.
PepsiCo shares rose 45 cents to close at $51.50 Thursday on the New York Stock Exchange, where Coke shares fell 3 cents to $52.26.
http://accesswdun.com/article/2002/3/196750