PepsiCo's Gatorade has reached an out-of-court settlement with Coca-Cola resolving the lawsuit filed on Monday in Chicago's U.S. District Court. The move follows Coca-Cola's agreement to immediately terminate the airing of one Powerade Option TV commercial and modify the language in a second ad to address the concerns expressed in the lawsuit relating to the carbohydrate calorie content and relative energy benefits of Gatorade and Powerade Option.
“Our primary concern is to ensure that consumers are accurately informed about the benefits of a functional sports drink, and we are satisfied with Powerade Option's decision,” said Cindy Alston, vice president, equity development and communications for Gatorade.
Powerade Option has immediately stopped airing its “Drag Race” commercial, which was cited by Gatorade as containing inaccurate information. Powerade Option also agreed to modify its second commercial, called “Laces,” with respect to the carbohydrate calorie content and relative energy benefits of the two products. In addition, Powerade Option will submit the revised “Laces” ad to an expedited review by the Better Business Bureau's National Advertising Division (NAD), which already recommended earlier this year that Powerade Option “clearly and conspicuously” disclose the product does not provide the energy benefits that Gatorade delivers.
