Beyoncé $50 Million Deal: Pepsi Put A Check On It! [VIDEO]

December 10, 2012 4:44 PM EST | By Mo Mozuch
Beyonce Pepsi Can
This can will be part of the ad campaign set to roll out next year featuring Pepsi's newest spokesperson. (Photo: Pepsi)
This can will be part of the ad campaign set to roll out next year featuring Pepsi's newest spokesperson. (Photo: Pepsi)
This can will be part of the ad campaign set to roll out next year featuring Pepsi's newest spokesperson. (Photo: Pepsi)

Beyoncé just inked a $50 million deal with Pepsi, a merger of pop superstardom and pop supersalesdom that will undoubtedly result in one of the "sweetest" Super Bowls in years. After her scheduled performance at the Pepsi-sponsored halftime show, Beyoncé is set to appear in the first of a number of ads for the soft drink giant. The deal isn't just ads though, and Pepsi has agreed to financially back Beyoncé on yet-unnamed projects that may have nothing to do with pushing their brand.

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"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."

Beyoncé's $50 million deal includes putting her face on a limited edition can, cardboard cutouts for retail outlets and traditional TV commercials. Beyoncé's $50 million deal isn't a straight-up $50 million check. The $50 million is based on the cost of the whole campaign and includes the cost of purchasing ad space in various media outlets around the world. Beyoncé's fee, and a creative content fund, are also included in the $50 million figure according to the New York Times.

Beyoncé has appeared in Pepsi ads in the past.

Lee Anne Callahan-Longo, the general manager of Parkwood Entertainment, Beyoncé's company told the NY Times that in addition to conventional advertisements, the deal includes funding for anything Beyoncé related including live events, videos, "a cool photo shoot" or just about anything else Beyoncé decides to do as part of her $50 million deal.

"We recognize that there have been massive disruptions in music industry: lower investment in artist development, fewer points of distribution, financial constraints," Frank Cooper, a top marketing executive in PepsiCo's beverage division, told the NY Times. "We look at those disruptions as opportunities for Pepsi."

Industry insider types are pointing towards the deal Beyoncé's husband, Jay-Z, inked with Budweiser in 2006 to become a "co-brand director." The deal didn't just include access to Jay-Z's fame, but put him in the boardroom to develop marketing strategies. David Schwab, head of Octagon First Call's celebrity acquisition unit (which partners celebrities with branded opportunities) told Forbes he espectes to see Beyoncé's $50 million deal include something similar.

"I wouldn't be surprised if she's sitting in a board room with the Pepsi creative department talking about her fans and her vision," he said. "But you can't know what's going to come out of that meeting."

Beyoncé is a hot commodity right now. After taking time off due to the birth of her daughter Blue Ivy, the singer is about to embark on a 108-stop tour estimated to bring in over $100 million. She is also the star (and director) of an HBO documentary debuting in February. So there's Beyoncé buzz right now, but will it jive with Pepsi buzz?

"Beyoncé knows how to sell Beyoncé and Pepsi knows how to sell Pepsi," Schwab told Forbes. "We'll see success only if those two marketing minds think alike, and it will certainly work best if they both go into the deal knowing that."



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