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

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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