Simon Dumps Coke for Pepsi in New Five-Year Deal

ATLANTA-In a deal estimated by area marketing professionals at about $9 million, locally based Coca-Cola Co. and Indianapolis, IN-based Simon Property Group Inc. begin a national promotional alliance in January that includes six metro Atlanta malls totaling 8.31 million sf.

Simon’s Atlanta-area properties comprise the 1.9-million-sf Mall of Georgia, Buford, GA, the largest shopping center in the state; Lenox Square, 1.57 million sf; Northlake Mall, 1.5 million sf; Town Center at Cobb-Kennesaw, GA, 1.28 million sf; Gwinnett Place, Duluth, GA, 1.24 million sf; and Phipps Plaza, Buckhead, GA, 820,000 sf.

Nationwide, Coke products will dominate in 248 Simon shopping centers totaling 185 million sf in 36 states, the companies say in a jointly prepared statement. Simon’s five-year contract with Pepsi-Cola Co. of Purchase, NY ends Dec. 31.

The Coke deal gives the world’s largest beverage company exclusive rights to vending, sponsorships, promotion and advertising at Simon’s properties which the company says is visited by 100 million shoppers annually. Restaurants and tenants in food courts at the Simon malls will still be able to sell Pepsi products.

“This agreement further validates our strategy of positioning the mall as an outstanding marketing opportunity,” Simon Property Group CEO David Simon says in a prepared statement. “Our properties give Coca-Cola the ability to interact one-on-one with their millions of U.S. customers in a comfortable environment.”

The Simon Property Group executive says Coke “will be able to leverage Simon’s advertising network and variety of interactive marketing platforms to engage customers in a truly unique and differentiated way.”

Simon says the deal “further demonstrates the marketing value of the Simon mall franchise.” The deal was done with Simon Brand Ventures, the marketing division of Simon Property Group.

Jeffrey T. Dunn, president and chief operating officer of Coke’s North American division, says in the same statement he expects the deal will generate new sales for his company and “create marketing experiences that build both our brands and refresh millions of shoppers.”

Pepsi officials couldn’t be reached at GlobeSt.com’s publication deadline. But a published report says Pepsi walked away from the bidding after Coke topped Pepsi’s three-year, $6.75 million offer.

Pepsi then renewed its five-year marketing deal with Chicago-based General Growth Properties Inc. for an undisclosed amount, Pepsi confirmed in a published report.