In a collaboration that's indicative of Pepsi's youthful direction, the company has announced a partnership with mega-star Beyonce which will cost them around $50 million.
The deal will see the singer appearing in ads for the soft drink and her image will be placed on special-edition cans early next year, all of which will coincide with her Super Bowl appearance and a promotional whirlwind for her upcoming album, which doesn't have a release date yet. In return, Pepsi will give financial support to whatever projects she chooses to do over the next several years. The multi-million dollar budget will be split evenly between ad and promotional costs, Beyonce's fee, and her creative endeavors.
“Pepsi embraces creativity and understands that artists evolve,” Beyoncé said in a statement. “As a businesswoman, this allows me to work with a lifestyle brand with no compromise and without sacrificing my creativity.”
Of course, Pepsi is not the first brand to strike a deal with a musician or young performer in order to gain from their image, but to land an international superstar like Beyonce is quite a feat. And it isn't just that she'll be appearing in ads--which isn't such a big deal--but the fact that there will be a partnership between the parties that is attracting so much attention.
“It’s not easy to strike a deal with a celebrity of Beyoncé’s caliber,” David Schwab, head of Octagon First Call’s celebrity acquisition unit--which pairs celebrities and branding opportunities--said. “There’s a lot on the table and both sides have a lot of work to do."