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Latest Business News

Pepsi, Coke Settle Suit Over Powerade Ad

Wednesday, March 22, 2006 7:41:47 PM

ATLANTA (AP) - The Coca-Cola Co. and a subsidiary of its chief rival, PepsiCo Inc., have reached a settlement in a lawsuit over an advertising campaign for Coke's Powerade Option sports drink.

Coca-Cola agreed to stop airing one Powerade Option TV commercial and modify the language of another relating to the carbohydrate calorie content and relative energy benefits of Powerade Option and Gatorade, which is produced by Stokely-Van Camp, part of PepsiCo's Quaker Foods.

The lawsuit filed Monday in U.S. District Court in Chicago said the ad campaign featuring a "drag race" between farmers in Amish dress riding horse-drawn carts was false and deceptive. It claimed the ad implied that Powerade Option's fewer calories "literally make you go faster."


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