We all love going to the movies. And we all know that popcorn is an essential part of that experience. But you need one more thing to make the experience complete -- some delicious liquid to wash the popcorn down. What better for the job than a nice, refreshing cup of sugary water?
That brings me to today's topic. According to Dow Jones newswires, PepsiCo (NYSE:PEP) and the National Amusements theater chain have agreed to continue their long relationship for five more years. National Amusements is, of course, the parent entity of Viacom (NYSE:VIA), which owns MTV. I can tell you, on a purely anecdotal level, one related to my own personal canvassing, that I sense a preference for Pepsi over Coca-Cola (NYSE:KO) among the current music-video generation (which also loves movies, by the way). As a shareholder of PepsiCo's archenemy, I'm disheartened. Perhaps National Amusements senses the trend, too, and thinks that Pepsi is the better drink for the kids that are currently growing up on stuff such as MTV's The Real World.
Besides all manner of Pepsi concoctions, the deal also involves placement of the company's Frito-Lay items. See, that's the real strength of PepsiCo -- it's all about the chips. As Alyce Lomax noted in an article last summer, all of PepsiCo's eggs are decidedly not in a single basket; instead, the company has a diverse portfolio of tricks up its sleeve, in the form of Quaker Oats products, Doritos, Fritos, and on and on. I've never actually been to a National Amusements theater, so I can't gauge exactly how annoying it would be to hear someone crunching on a chip next to me during a climactic moment up on the big screen, but I'm sure it adds value to the overall moviegoing exercise for many a patron.
The fountain wars will continue between the two soda giants, and for PepsiCo stakeholders, the continuation of this movie partnership is a good one. Coca-Cola, which is a Motley Fool Inside Value recommendation, can certainly be found in the multiplexes, including Loews theaters, so don't think the Atlanta syrup maker isn't aware of the power of cinema. It's important for both sides to lock up these fountain deals, since what you've got is a pretty captive (and receptive) audience for the sweet beverages most of the time. Missteps like the one with Quiznos are never welcome, but since these wars will never end, there's always the hope of another day and another opportunity.
Want some more pop (soda) culture? Check out the following:
- PepsiCo Drinks In Success
- Is Pepsi Bottling Happiness?
- Soda South of the Border
- Coke's a Value Stock
You can also dispense some thoughts at the PepsiCo discussion board.
Fool contributor Steven Mallas owns shares of Coca-Cola.
