Knight Riders deal with Coca-Cola

Kolkata Knight Riders Make Deal with Coca-Cola, Not with Pepsi Again :
Tit for tat. First PepsiCo did not renew their endorsement contract with Shah Rukh Khan after a decade-long association and then Shah Rukh Khan’s IPL did not renew their endorsement contract with PepsiCo for this year. This is called exact retaliation.

Coca-Cola on 19th February, 2009, announced it would be an associate sponsor of Kolkata Knight Riders, the DLF Indian Premier League team owned by the actor Shah Rukh, actress Juhi Chawla and her husband Jai Mehta, for three years, starting this season (IPL Season II).

The negotiations with PepsiCo for title sponsorship began to look tough in this season; the actor’s Indian Premier League team then has begun talks with Coca-Cola for a new deal. Finally the deal fixed with Coke rival PepsiCo fizzled out.

“We had a meeting with PepsiCo yesterday evening after which we decided that there was no point expecting much from them. Coke was making a much better offer as per their letter of intent. It was a multi-year deal — so we picked Coke,” said a Knight Riders source.

Pepsi was the associate sponsor and beverage partner of Kolkata Knight Riders last year.

PepsiCo, which did not renew its endorsement contract with SRK after a decade-long association, had been willing to offer a “golden handshake” to the superstar in the form of a sponsorship for his IPL team.

Sources said the three-year deal with Coca-Cola - which would promote Sprite brand (the company’s clear lemon drink) — would fetch KKR around Rs. 5 crore annually. Though it was first heard that Coca-Cola is expected to pay around Rs 6 crore, but may be after negotiation the price came down to Rs. 5 crore per annum.

PepsiCo did not comment on the development. But sources said it wasn’t ready to offer more than a one-year contract, worth around Rs 4 crore.

As part of the new deal, Sprite will be the official beverage of the Kolkata team.

“Twenty20 cricket is clearly a growing passion with today’s youth. The success of IPL 2008 has taken the game to a new high. It provides Coca-Cola India with a very exciting platform to connect with all its consumers. We are happy to bat with Kolkata Knight Riders as an associate sponsor and pouring partner,” said Venkatesh Kini, vice-president (marketing), Coca-Cola India.

Coke will get branding rights for Sprite on players’ apparel (leading arm) as well as on the helmet.

“The KKR partnership will further help entrench the brand among consumers not only in Bengal but across India. As part of the association, Sprite will have in-stadia presence and activation rights for all seven home matches at Eden Gardens, India’s most loved cricketing venue,” said Coke spokesperson Viraj Chauhan.