PepsiCo, the US snacks and beverage maker,has got into a licensing deal with local licensing firm DVB Brands.
As part of the deal, the latter will launch lifestyle-based sports footwear in the country, a brand extension which has taken the wind off industry experts.
The move is driven by PepsiCo globally, and not the Indian firm. PepsiCo senior VP, Global Beverage Group, Kristin Patrick said: “Our iconic brands have enabled us to provide consumers with new ways to engage with PepsiCo – whether it be in a can or apparel or accessories. We are creating new opportunities for consumers to engage with our brands across multiple touch points and with strong partnerships with brands including Zara, H&M and Fila.”
Industry experts say while licensing is a legitimate way to enter new businesses, the extension of a cola or food brand into shoes will not work and will damage the core brand while revenues from the extension could be minimal.