The New Pepsi Challenge: Gatorade v. Powerade

PepsiCo, Inc. sued Coca-Cola Co. over Coke's ad campaign touting the superiority of Powerade over Gatorade. Pepsi is claiming that Coke's ads are deceptive. Coke states that its sports drink is superior and Gatorade is "incomplete" because Powerade ION4 contains calcium and magnesium. According to Pepsi, that the amount of the minerals in Powerade ION4 is less than 0.5 percent of their recommended daily allowance and that most tap water contains more minerals.

It reminds me of when the FTC challenged an advertisement by Nestle that claimed Carnation Instant Breakfast has as much mineral nourishment as two slices of bacon. The problem? Bacon has no minerals.

The FTC encourages advertisers to run comparative ads - they're viewed as beneficial to consumers so long as they don't mislead. Coke's statement that Gatorade is incomplete without an insignificant amount of calcium and magnesium isn't a comparative ad - it is a claim and ad claims must be substantiated. Coke will have a tough time substantiating a claim that Gatorade is incomplete without an insignificant amount of minerals.

It looks like Coke might just lose the Pepsi challenge again.