In a major setback to 28-year partnership of NBA with Coca-Cola Co., Pespi has taken over league sponsorship rights for the National Basketball Association.
PepsiCo will be the official food and beverage partner of NBA, the Women's National Basketball Association, NBA Development League, and USA Basketball, starting next season.
The new deal will involve PepsiCo's sodas, as well as its Aquafina, Lipton Brisk, Doritos, and Ruffles brands. Mountain Dew will become NBA's lead soft drink brand.
The company will also expand NBA's 3-on-3 basketball programme with several new fan and community activities, PepsiCo said.
"We have made the decision not to renew our global contract (with NBA) at the end of the 2014/2015 season," said a Coca-Cola spokeswoman. Coca-Cola will, however, continue its relationships with individual venues, teams and players.
The new deal is worth more than NBA's partnership with Coca-Cola in terms of the overall investment, reported Fortune, citing a source close to the deal.
Food and beverage company, Tingyi Holding Corp, PepsiCo's partner in China, will be NBA's exclusive partner in that country through its Master Kong brand.
Coca-Cola was NBA's official beverage sponsor since 1986 and Sprite the league's official soda in the United States since 1994. Separately, Coca-Cola has signed a multi-year agreement with the United States’ Soccer Federation and Major League Soccer, and that it would be the beverage sponsor for the U.S. Soccer and the Mexican national teams' U.S. tours.
PepsiCo has had sponsorship agreements with Major League Soccer since its inaugural 1996 season.