PepsiCo Returns to F1 Team Sponsorship with Mercedes Deal

PepsiCo is making a significant return to Formula 1 team sponsorship, partnering with Mercedes for the first time since its iconic 7UP collaboration with Jordan in 1991. The deal, which focuses on Gatorade, Sting, and Doritos, expands PepsiCo's F1 involvement beyond its existing league-wide partnership.

Why it matters:

PepsiCo's re-entry as a team sponsor, especially with a major outfit like Mercedes, signals a renewed corporate interest in Formula 1's growing global appeal. For Mercedes, securing such a prominent partner further strengthens its commercial portfolio and provides access to advanced sports science, potentially enhancing driver performance and team operations.

The details:

• Brand Focus: The partnership highlights three of PepsiCo's core brands: Gatorade, Sting, and Doritos.
• Fan Engagement: PepsiCo and Mercedes plan various fan activations to bring enthusiasts closer to the sport.
• Performance Solutions: Gatorade's Sports Science Institute (GSSI) will contribute its expertise to help develop performance solutions for the Mercedes team, focusing on aspects like hydration and athlete nutrition.
• Expanded F1 Presence: This team sponsorship builds upon PepsiCo's existing multi-year global partnership with F1 itself, which runs until 2030 and also features Gatorade, Sting, and Doritos.
• Branding Placement: While the deal is confirmed, discussions are still underway regarding the specific placement of PepsiCo product branding on Mercedes cars, driver overalls, and team wear.
• Financial Powerhouse: PepsiCo reported nearly $92 billion in net revenue in 2024, boasting a vast portfolio of major brands including Pepsi-Cola, Mountain Dew, and SodaStream.

The big picture:

PepsiCo's last major F1 team sponsorship was with Jordan in 1991, an iconic partnership remembered for the distinctive bright green-and-blue Jordan 191 livery featuring prominent 7UP logos. Although PepsiCo had a marketing arrangement with Williams in 2002 involving 7UP, it was not a direct sponsorship with car or team branding. This new Mercedes deal marks PepsiCo's most extensive involvement with an F1 team in over three decades, underscoring the sport's burgeoning market appeal and Mercedes' position as a top-tier partner.

What's next:

The full extent of the PepsiCo branding on Mercedes will be revealed as the 2025 season approaches. This partnership is expected to drive significant fan engagement and integrate sports science into F1, potentially setting a new standard for how major consumer brands collaborate with racing teams to enhance both commercial appeal and on-track performance.