Pepsi sends in the big guns as Diet Coke becomes the No. 2 soft drink

In the clash of the colas, reinforcements are on the way.

New industry data, to be released Thursday, is expected to show that Diet Coke surpassed Pepsi in 2010 in U.S. sales among sparkling sodas, knocking Pepsi to the No. 3 spot from No. 2 -- a stunning fall from grace. Coca-Cola Co. has maintained the top perch in the $74-billion-a-year soft drink industry.

“We’re not happy. We would obviously like to be No. 1,” said Massimo d’Amore, chief executive of PepsiCo Beverages Americas. "We want to reclaim the place that belongs to this company." 

Pepsi's latest weapon:  Simon Cowell's new talent contest "X Factor" that will debut on the Fox network this fall.  Pepsi is spending more than $60 million to sponsor the show, a package that includes advertisements and product integrations woven into the program.

For Pepsi, sponsorship of "X Factor" is intended to help ease lingering pain over passing on the sponsorship of "American Idol" to archrival Coca-Cola nine years ago.  “Our people, at the time, did not see how big “American Idol” was going to be. We lost a lot of momentum and the competition gained it,” D'Amore said.

Last fall, Cowell picked Pepsi to be the sponsor of "X Factor," in part, to ratchet up the competition between his new show, "X Factor," and the show he helped build into a juggernaut, "American Idol," which continues to be sponsored by Coke.

That makes the two talent competition shows the latest foot soldiers in the 110-year cola wars.

"Bring it on," Cowell said in an interview from his London home.  "I love it."

Read the full story here

-- Meg James

Photo: Simon Cowell Credit: Jessica Rinaldi / Reuters

Comments

[Steve Jones]

It is an amazing success story for Coke. So often the line-extension kills the parent brand, like Coors Light did to Coors. Coke has brilliantly positioned Diet Coke and to overtake Pepsi is a massive rock-star feat.

[Harold]

Coke tastes better then Pepsi.

[Sophie]

I recently quit drinking all sodas, but anyone who's anyone knows that Coke tastes better than Pepsi.

[blarg]

I know more people who are addicted to Diet Coke than who are addicted to cigarettes. It's the only soft drink I know where those who drink it drink it so heavily.

[Sam Taylor Jr.]

Pepsi is *just slightly* better than thirst...

--Samiam--

[BOING!]

American Idol is Coke and X Factor is Pepsi, LOL.

[Maximus]

I remember the Pepsi Challenge from the 80s.
I always picked Diet Coke as did more than 50%. Not a good move by Pepsi - as was 'New Coke'...

[Dylan]

Pepsi will try anything short of actually improving their inferior soda.

[david mudkips]

The reason pepsi is miles behind coke in sales is that pepsi just doesn't taste as good as coke. It's not something that is easy to change, people either prefer pepsi or coke advertising makes little difference to that.

[uli]

Quit drinking that stuff!

[Mike Maynard]

$60,000,000? That would buy a few cans of Pepsi; why not give the stuff away? They are as usual giving $60,000,000 to another wealthy company; it wouldn't do to give their customers or employees a break.

I'm English, I'll make tea...

[danntthered]

I don't get the complete fascination with Simon Cowell.

How does he qualify for "hero worship"?

[Tim Smith]

All canned products are bad for you the cans are lined with plastic and what do you think is happening while they are stored. (leach) Diet anything is mad from a substance that was not properly tested or approved you are the modern ginnie pigs. Why would someone need to spend billions advertising their product if it was good for you.

[Zic]

it's a well-known fact that sodas destroy your teeth! badly!

[Akberkassam]

YES. I think Diet COKE is the best soft drinks, among all other soft drinks.

Akber Kassam.
NYC.