Justin Timberlake speaks during the Pepsi Super Bowl LII Halftime Show press conference Feb. 1, 2018 in Minneapolis, Minnesota.
Timothy A. Clary | AFP | Getty Images
Coca-Cola and PepsiCo won’t be promoting their eponymous soft drink with Super Bowl commercials this year.
The decades-long rivalry between the two Coke brands is often centered around dueling ads at the annual NFL championship game. But this year they will both sit it out. Variety was the first to report the news.
Pepsi is replacing its traditional Super Bowl ad space with a new campaign leading up to the in-game halftime show with The Weeknd. This year marks 10 years since Pepsi sponsored the Super Bowl halftime show. But Mtn Dew and Frito-Lay, both of which are owned by PepsiCo, have plans for in-game advertising.
In a statement to CNBC, Coke said it will toast to other brands from the sidelines this year.
“This difficult choice was made to ensure that we invest in the right resources in these unprecedented times,” said spokesman Kate Hartman.
In 2019, it chose 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. Sales decreased by 13% during the first nine months of 2020, as sales in restaurants, gas stations and office buildings go wrong. PepsiCo receives a smaller portion of its revenue from out of home establishments.
Coke shares are down 14% in the past year, putting it at a market value of $ 210 billion. Shares of PepsiCo are up 2% over the same time, giving it a market value of $ 197 billion.