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Thirsty Thursday

    • Both Constellation Brands and PepsiCo beat quarterly expectations with sports and fitness ties.
    • This article was first published in the FOS Daily Newsletter. Subscribe here.
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At-home fitness isn’t only driving a rapidly growing connected fitness sector — living room workouts are causing thirsty consumers to reach for sports drinks. PepsiCo, which owns Gatorade, reported its third quarter earnings yesterday, which included a 5.3% increase in revenue to $18 billion.

“People are exercising at home, people are embracing daily routines of exercising that helps the sports drink category and obviously Gatorade as a leader in that category,” PepsiCo Chairman and CEO Ramon Laguarta said on a conference call. PepsiCo stock was up 1.59% on the day.

Pass Me A Cold One:

Constellation Brands will look to use sports to help bolster sales in the second half of its fiscal year. The owner of a variety of alcohol brands — including Corona, Modelo and Pacifico — also reported its earnings yesterday, beating estimates. 

The company’s beer business grew 11% in tracked retail sales. Even so, Constellation Brands expects a strong push in marketing spending with the return of sports — as much as 10% of net sales on a full-year basis.

New NFL x Constellation Partnerships:

  • Rams x Corona
  • Chargers x Pacifico
  • Raiders x Modelo

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