PepsiCo Inc. is replacing Coca-Cola Co. as the primary sponsor of the National Basketball Association (NBA), Reuters reports, granting the company rights over its brand and promotional activity.
Coca-Cola Co. owned rights over NBA sponsorship for a total of 28 years. PepsiCo will now function as the official food and beverage franchise for the NBA and the Women's NBA, the Women's National Basketball Association, NBA Development League and USA Basketball
"We have made the decision not to renew our global contract (with the NBA) at the end of the 2014/2015 season," a Coca-Cola spokeswoman said in an e-mail, according to the site.
The NBA's main soft drink since 1994, Sprite, will now be replaced by Mountain Dew. Snacks like Ruffles and Doritos chips will now be provided for NBA matches by PepsiCo Inc.
Although specific financial figures for the deal have yet to be released by any of the organizations, Coca-Cola Co. did assure investors that it will maintain partnerships with specific NBA players and teams which it continues to work with.
Coca-Cola Co.'s 28-year sponsorship with the NBA did not include food products, which PepsiCo Inc. will now include.
"We remain fans of the NBA and have shared remarkable experiences during our 28-year partnership, however we have made the decision not to renew our global contract at the end of the 2014/2015 season," Coca-Cola Co. officials said in a statement, according to Fortune.
"The Coca-Cola Company has committed an incremental $1-billion toward its brands over the next three years, and with this commitment comes the need to focus on the most effective and efficient investments to maximize brand growth."
The NBA was founded in 1946.
