LAGUNA NIGUEL, Calif., May 16 -- PepsiCo Inc. and Lucasfilm Ltd. announced Thursday a $2 billion promotional tie-in with the 'Star Wars' movies, the largest such deal in the entertainment industry. The alliance will cover the re-release of the 'Star Wars' trilogy next year, featuring new footage and digitally enhanced soundtracks, and through the 1999 release of Lucasfilms' next 'Star Wars' movie, expected to begin production next year. PepsiCo, of Purchase, N.Y., did not break out how it will spend the $2 billion but the promotion will be far-reaching because it takes in all three PepsiCo restaurant chains -- Taco Bell, Pizza Hut and Kentucky Fried Chicken -- its Frito-Lay snack food division and its beverage division. The deal represents the first time that PepsiCo has attempted to bring its divisions together for a single promotion. It also comes two months after Roger Enrico became PepsiCo's chief executive officer. Enrico used similarly aggressive strategies in his earlier stints as head of each PepsiCo unit. Enrico said the deal is part of his strategy to accelerate PepsiCo's annual growth beyond its customary 15 percent rate. 'Lucasfilm has and will continue to change the way movies are made, and this partnership will forever change the way movies are marketed,' Enrico said. 'Combine the worldwide appeal of 'Star Wars' with PepsiCo's massive, global reach, and we have the unique opportunity to truly connect with virtually every consumer around the world.' Gordon Radley, President of Lucasfilm, said, 'The power of the PepsiCo brands and the award-winning wit and creativity of their marketing make PepsiCo the perfect promotional partner for 'Star Wars.'
There is no other company in the world that could deliver a worldwide campaign of this magnitude.' The agreement with Lucasfilm comes a month after reports emerged that entertainment giant Walt Disney Co. and fast-food king McDonald's Corp. were in advanced negotiations for a 10-year exclusive worldwide promotional agreement. McDonald's is expected to be involved in 14 to 17 promotions annually plus pay Disney $100 million for royalties, licensing and sponsorship of Disney's new 'Animal Kingdom' theme park. That deal reportedly would involve every division of Disney, including movies, television, cable, home video and theme parks, and would also shut out Burger King and PepsiCo. Burger King has been making gains on McDonald's in recent years with promotions tied to 'Toy Story,' 'The Lion King,' 'Aladdin' and 'Beauty and the Beast.' Pizza Hut staged a major tie-in with Universal's 'Casper' and Taco Bell held a succesful campaign for Paramount's 'Congo' last year.
