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    Categories: Food and beverages

PepsiCo repeats history, wins age-old MSG contract from Coke

In the ongoing competition between PepsiCo and Coca-Cola, Pepsi has reportedly emerged as a winner for the time being. The multinational food cooperation announced that from it will be the exclusive non-alcoholic beverage and snack partner across Madison Square Garden (MSG) properties from September 2018. The agreement overturns a contract Madison Square Garden held with Coco-Cola dating back to 1910.

According to founder and president of LakeView Asset Management, Scott Rothbort, the deal is more of a symbolic gain than a monetary one as the company will hardly profit economically from the same. He also added that Lakeview avoids Coca-Cola but considers PepsiCo in its dividend portfolio.

The finance expert also pointed out how over the last five years, both brands have struggled to perform in the S&P 500, though PepsiCo’s struggle was comparatively lesser. Considering its wide range of products, it will continue to outdo Coke’s performance in the market, claim analysts.

Brands that fall under PepsiCo’s umbrella include beverages like Gatorade, Mountain Dew, Lipton and Pure Leaf ice teas and salty snacks like Doritos, SunChips, Frito-Lay’s and Cheetos.

The Madison Square Garden contract specifies that Pepsi’s products will be served all over MSG properties namely, Chicago Theatre, Chicago and Radio City Music Hall, New York. Additionally, the company will partner with MSG sports companies that include the New York Knicks and Rangers and other franchises such as the Christmas Spectacular, featuring the Radio City Rockettes. Moreover, Pepsi’s inclusion in the MSG family also means it will get the arena’s eight-floor concourse renamed after it, which will increase the company’s brand exposure.

Incidentally, this is not the first time when Pepsi has outperformed Coke. In 2015, the company ended Coke’s 28-year-old contract with the National Basketball Association (NBA), after it struck a deal to partner as the exclusive food and beverage sponsor for the league.
Paroma Bhattacharya:

Paroma currently works as a content developer for CMFE Research and a couple of other platforms. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched content in diverse fields. Apart from being a compulsive reader she also loves to cook, paint and travel. UPDATE: Paroma Bhattacharya no longer writes for CMFE Research. Should you have any query related to the content or wish to get in touch with us, please reach out to ‘Pankaj Singh’. or Email - pankaj.s@cmferesearch.com

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