CHICAGO -- PepsiCo Inc. is taking on The Coca-Cola Co. in federal court, said the Associated Press. PepsiCo's Gatorade beverage business filed a lawsuit Monday in U.S. District Court against Coca-Cola's Powerade unit to stop an ad campaign that it claims is false and deceptive.
A new TV ad for Powerade Option sports drink features a drag race between two farmers in Amish dress, riding horse-drawn carts loaded with hay balesone with ten bales and one with 50. The ad shows the cart with fewer bales easily cruising to victory, and touts that Powerade Option [image-nocss] has 10 calories compared to Gatorade's 50 calories.
In other words, Coca-Cola is telling consumers that Powerade Option's fewer calories literally make you go faster; however, Coca-Cola cannot possibly substantiate this overall superiority claim, the suit says. Powerade Option, which contains negligible calories, cannot refuel athletes in a similar manner as Gatorade, the court filing claims.
The suit seeks a permanent injunction to bar Coca-Cola from running the ads, which were launched last week during the start of the NCAA men's basketball tournament.
Coca-Cola spokesperson Dan Schafer told AP that the Powerade Option ads are truthful and that Gatorade has no research to prove its allegations. Our advertising tells the truth, and we stand by it, Schafer said.
Gatorade's lawsuit says that the National Advertising Division of the Better Business Bureau last year decided that Coca-Cola could compare Powerade Option to Gatorade only if it discloses that consumers will not receive the energy replacement benefits provided by Gatorade. Coca-Cola apparently changed its mind when it decided to launch its new television campaign, the suit says.
Schafer said the ads fulfill Coca-Cola's agreement with the NAD.
In other PepsiCo news, the Purchase, N.Y.-based company said it has promoted Michael D. White to the position of vice chairman of the corporation, and named him to its board. Both appointments are effective immediately.
White, who has been chairman and CEO of PepsiCo International since 2003, will continue his role leading all operations outside of North America. Prior to heading PepsiCo International, he led PepsiCo's snacks businesses in Europe, the Middle East and Africa. Previous assignments also include serving as CFO for the corporation. White joined PepsiCo in 1990 as vice president of planning at Frito-Lay North America.
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