The cola wars are back: Pepsi pledges to go 'toe-to-toe' with Coke
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The campaign attempts to spin the brand forward to the modern age by suggesting it has persevered through multiple generations. But the approach begs the question: Is Pepsi, long associated with the here and now and hottest stars, leaning a bit too much into its past? (Before the switch, one recent tagline was was “Live for Now.”)
Time will tell. But so far, the Super Bowl ad did not appear to move the needle much. Indeed, beverage volumes fell in the first quarter despite media spending that executives characterized as being “up significantly” in the period, including a double-digit hike across big brands. The spending included a Super Bowl ad starring Morgan Freeman for a new Mtn Dew line extension called Mtn Dew Ice. Brand Pepsi, meanwhile, has a new ad featuring New York Yankees star Aaron Judge that debuted in time for the baseball season.
On the earnings call, one analyst asked why PepsiCo’s beverage business has yet to respond to the company’s media spending surge. PepsiCo Chief Financial Officer Hugh Johnston responded that advertising takes a longer time to take hold when compared with other marketing moves like adding new distribution or tweaking prices.
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