PepsiCo vs. Coca-Cola: Powerade's play gooses Gatorade; Coca-Cola brand picks up share but observers bet on PepsiCo strength.(Brief Article)(Statistical Data Included)

Advertising Age, February, 2002 by Chura, Hillary

Gatorade blinked-or at least squinted.

After refusing to cut prices, the PepsiCo-owned sports-drink leader was forced to reconsider after Coca-Cola Co.'s upstart Powerade dented its 2001 lead with aggressive discounts and promotions. While still a distant No. 2 in sports drinks, Powerade last year increased share 2.5 points to command 13.3% of the take-home channel; Gatorade lost that same amount, ending up with a 78.8% share, according to Beverage Digest.

Beverage insiders question the sustainability of Powerade's rise. But it's clear the move put PepsiCo, which last summer paid $13.8 billion for Quaker Oats Co. and its crown jewel Gatorade, on notice. Robert Morrison, PepsiCo vice chairman and former Quaker chairman-CEO, this month told analysts the...

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