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Budweiser, Pepsi Join Forces Against Coke For Super Bowl Dominance: Report

Pepsi Wages War On Coke
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Law student & former journalist

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Budweiser and Pepsi have reportedly set their sights on a common enemy: Coca-Cola. According to an internal email obtained by Ad Age, parent companies Anheuser-Busch InBev and PepsiCo have teamed up against the rival brand on joint promotions and in-store marketing ahead of this year's Super Bowl.

Together, the two Super Bowl sponsors will tout Bud Light, Pepsi and Doritos -- also owned by PepsiCo -- in campaigns leading up to the big game, such as "Super Bowl. Super Team. Super Party." However, the alliance will not extend to in-game coverage, Paul Chibe, InBev's vice president for U.S. marketing, told Ad Age.

Despite their co-branded partnership, Budweiser and Pepsi will air separate commercials during the game. The average price of a 30-second Super Bowl spot is estimated to cost $4 million.

In an internal memo sent by InBev to distributors, the beer company called the partnership with Pepsi a "National Big Bet" and noted that the three brands are "trying to work together to have flawless execution at retail," Ad Age reports.

Beverage Digest's editor and publisher John Sicher believes the combination of the three brands has the potential to be "very powerful." After speaking to Pepsi bottlers, he told Ad Age: "they believe this could have strong competitive potential."

As Business Insider notes, Pepsi has the most to gain from the Super Bowl deal, since its cola lags behind Coca-Cola's Coke (No. 1) and Diet Coke (No. 2) in the U.S.

This is not the first time, Budweiser and Pepsi have joined forces. In 2009, the two teamed up to cut costs on material purchases, and, in 2010, the companies made a pact to pool their media budgets. However, as Brand Channel points out, this will be the first campaign in which the two companies pair their beverage brands together.

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Before You Go

10 Things The Fast Food Industry Doesn't Want You To Know
McDonald's Grew During The Recession(01 of10)
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McDonald's had higher sales growth in 2008 than in 2006 or 2007, opening nearly 600 stores that year, according to Slate. The chain was able to take advantage of Americans' recession tastes: Cheap, convenient food. (credit:Getty Images)
They Handle Food That Isn't Really Food(02 of10)
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One Reddit user claiming to be an ex-McDonald's worker said he once left a bag of chicken nuggets out on the counter for too long and "they melted. Into a pool of liquid." That didn't stop him from loving the nuggets, "still delicious," he wrote. (credit:Getty Images)
Fast Food Companies See Huge Profits On The Backs Of Low-Wage Workers(03 of10)
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More than 60 percent of low-wage workers are employed by big corporations, according to a July analysis by the National Employment Law Project. And more than 90 percent of those companies were profitable last year. (credit:Getty Images)
The Average Pay For A Fast Food Worker In New York City Is $9 Per Hour(04 of10)
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Fast food workers in New York City make an average of $9 per hour, according to the Village Voice. That comes to about $18,500 per year for full-time workers. (credit:Getty Images)
Fast Food Workers Are Unlikely To Get Paid Sick Days(05 of10)
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For 40 percent of private sector workers, taking a sick day and still getting paid isn't an option, according to the Baltimore Sun. Fast food workers are especially likely to be part of that 40 percent. (credit:Getty Images)
The Boss Can Threaten To Take Workers' Health Care Away(06 of10)
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Many fast food workers saw their health benefits put at risk this year, if they even had them at all. Papa John's CEO John Schnatter said he would likely reduce some of his workers hours so that he wouldn't have to cover them in response to Obamacare. Jimmy John's founder, Jimmy John Liautaud told Fox News in October that he would "have to" cut workers' hours so that he wasn't forced to cover them under Obamacare. (credit:Getty Images)
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The average hourly pay at McDonald's, Wendy's, Burger King and Taco Bell is less than $8 an hour, according to salary data cited by CNBC. (credit:Getty Images)
The Median Age Of A Fast Food Worker Is 28(08 of10)
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As more workers fight for limited jobs, many older employees are gravitating towards the fast food industry. The median age of a fast food worker is 28, according to Bureau of Labor Statistics data cited by the Atlantic. For women, who make up two-thirds of the industry's employees, that age is 32. (credit:Getty Images)
Labor Leaders Rarely Try To Unionize Fast Food Workers(09 of10)
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Fast food worker's went on strike in late November in New York City, showcasing a rare effort to organize the industry's workers. Labor leaders often don't make an effort to organize these workers because the high turnover makes the challenge daunting. (credit:Getty Images)
Fast Food Workers Are The Lowest Paid Workers In NYC(10 of10)
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For all their work, fast food workers get very little dough. The lowest paid job category in New York City is "Combined Food Service and Preparation Workers, Including Fast Food," according to Bureau of Labor Department Statistics cited by Salon. (credit:Getty Images)
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