Gatorade Vs Powerade

What's all the "flap" about?

Its always interesting when the big boys go head to head. Now PEP has brought out the big legal gun in the contest between Powerade and Gatorade.

From Ad Age - NEW YORK (AdAge.com) -- PepsiCo's Gatorade brand today filed a lawsuit against Coca-Cola's Powerade, alleging false advertising, trademark dilution, deceptive acts and practices, injury to business reputation, and unfair competition. The suit, filed in U.S. District Court in New York, takes Powerade to task for its new advertising campaign, first reported by Advertising Age.

Gatorade has dominated sports drinks with a combination of positioning, advertising and functionality since the 60's. But recently the brand has proved to be vulnerable, first to Vitamin Water's incremental functionality appealing to non-sports use occasions. And now second to a direct sports competitor.

As the second punch, KO has gone after Gatorade's core sports occasion with a "better" sports drink: Powerade Ion 4, that has 4 electrolytes, over Gatorade's 2.

To publicize this product advantage Powerade has run some partial flap covers on Magazines (like ESPN Magazine) claiming that Gatorade is "incomplete". Hence the lawsuit.

However, (while I am no lawyer) since there are no real definitions anywhere in beverages, and, as long as there is no disparagement to the trade dress, or mis-representation of Gatorade's formula, its tough to see how this lawsuit will work. In fact it may be that just bringing the lawsuit plays into KO's hands: It puts Powerade on the same plane as Gatorade.

The battle reflects the contest for the high ground in one of the key market segments in functional drinks. Gatorade may currently be the 400 pound gorilla of sports drinks, but that position is starting to slip as other brands are using new claims to challenge Gatorade's almost 50 year old formula, and positioning that it is the ultimate sports drink.

But both KO and PEP don't let reality get in the way of good marketing. There are 7 electrolytes that can be lost in exercise; protein is important for endurance; and caffeine can improves athletic performance: Neither of these beverages are complete functional sports drinks.

Interesting though, eh?