Is Beyonce’s Deal with Pepsi Really $50 Million? Yes…well No. Sort of.

Beyoncé’s deal with Pepsi is not just your ordinary partnership.  Pepsi plans to get all up in Beyoncé’s business…in a good way.

Timing is everything in this multimillion dollar collaboration.  You will notice how nicely all the pieces fit together.  This is no accident. A lot of people get paid a lot of money to make this Beyoncé – Pepsi puzzle work.

First, Beyoncé will be performing during halftime at the Superbowl, an event and performance sponsored by Pepsi.  Then she will have a new TV ad, and then Pepsi will release her face on a limited edition soda can due to hit shelves in March 2013.  All that will be a nice run up to the release of her new, yet to be titled album.

Pepsi also plans to sponsor Beyoncé’s business endeavors that are not beverage related. This is one of things that attracted the superstar to Pepsi.  If you notice she does not endorse a lot of brands.  She loved the way Pepsi embraced all her ideas.  Beyoncé said,

“Pepsi embraces creativity and understands that artists evolve, As a businesswoman, this allows me to work with a lifestyle brand with no compromise and without sacrificing my creativity.”

Beyoncé has been basically given unlimited flexibility regarding the projects that Pepsi will sponsor for her.  This could include photo shoots, videos, charity events, just about any positive project that she can think of. Pepsi has brought into Beyoncé as a person.  One of the reasons to keep a wholesome image, and watch what you say on twitter something Beyoncé has done quite well. 

Brad Jakeman, President of PepsiCo’s global beverage group, expands on the concept of investing in the “Beyoncé brand”,

“Consumers are seeking a much greater authenticity in marketing from the brands they love.  It’s caused a shift in the way we think about deals with artists, from a transactional deal to a mutually beneficial collaboration.”

How is the deals $50 Million Estimation calculated?

Good question. Pepsi doesn’t cut Beyoncé a check for $50 million.  That number is comprised of 3 components.  First will be money spent by Pepsi placing media ads worldwide.  The remaining money will be split with half paying Beyoncé and the other half financing her creative endeavors.

Pepsi realizes that digital media has taken a chunk out of artist ability to earn from record sales, so entertainers are open to new and creative ways of earning.  Frank Cooper from PepsiCo’s marketing team explains,

“We recognize that there have been massive disruptions in music industry: lower investment in artist development, fewer points of distribution, financial constraints.  We look at those disruptions as opportunities for Pepsi.”

Coop is Senior Vice President, Chief Consumer Engagement Officer for Pepsi and has pioneered such innovative deals.

In summary, it’s not really a $50 million dollar deal, more like a $20 million dollar deal with money to be used for investment capital.  Either way it’s BBB.  Big Bucks For Beyoncé

When Jay Z heard about the money, he couldn’t stop grooving.  He was like,

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