Justin Timberlake speaks during the Pepsi Super Bowl LII Halftime Show press conference February 1, 2018 in Minneapolis, Minnesota.
Timothy A. Clary | AFP | Getty Images
The decadeslong rivalry between the two cola brands is often put front and center with dueling advertisements during the annual NFL championship game. But this year, both will sit it out. Variety first reported the news.
Pepsi is replacing its traditional Super Bowl ad slot with a new campaign to lead in to its halftime show at the game featuring The Weeknd. This year marks the 10-year anniversary of Pepsi’s sponsorship of the Super Bowl’s halftime show. But Mtn Dew and Frito-Lay, which are both owned by PepsiCo, have plans for in-game ads.
In a statement to CNBC, Coke said that it will be toasting to other brands from the sidelines this year.
“This difficult choice was made to ensure we are investing in the right resources during these unprecedented times,” spokesperson Kate Hartman said.
In 2019, it opted to run an ad before the Super Bowl game rather than during. But recently, the beverage giant has been reeling from the impact of the coronavirus pandemic. Its revenue fell 13% during the first nine months of 2020 as it missed out on sales at restaurants, gas stations and office buildings. PepsiCo receives a smaller proportion of its sales from away-from-home occasions.
Shares of Coke have fallen 14% in the last year, giving it a market value of $210 billion. PepsiCo’s stock has risen 2% in the same time, giving it a market value of $197 billion.