Brew Markets — Feb 5, 2026

Episode: PepsiCo’s Super Bowl Playbook & ELF’s Billion Dollar Beauty Bet
Host: Ann Berry
Guest: Mark Kirkham (Chief Marketing Officer, PepsiCo Beverages US)
Summary By: [Your Name]

Episode Overview

This episode dives into how PepsiCo is leveraging the Super Bowl as a keystone moment for brand marketing, product launches, and cultural impact—and discusses ELF Beauty's headline-making acquisition of Hailey Bieber’s Road with an investor's lens. Ann Berry hosts a revealing interview with PepsiCo Beverages’ CMO Mark Kirkham, who shares insider strategy for game-day advertising and beverage innovation, and reflects on changing consumer trends from zero sugar to functional drinks.

1. ELF Beauty’s Road Acquisition: Post-Merger Check-In

[00:42–05:25]

Key Points:

• Deal Recap: ELF Beauty bought Hailey Bieber’s skincare brand Road in May 2025 for $1B, during turbulent tariff times.
• Risks & Doubts:
  • Could Road keep up its meteoric direct-to-consumer growth?
  • Would Hailey Bieber stay involved as face and creative?
  • Could ELF justify the price, amid many failed celebrity brands?
• Tariff Overhang:
  • New tariffs imposed on Chinese imports (China = 75% of ELF’s production), caused margin squeezes and pulled guidance.
• Earnings Surprise:
  • Road’s integration boosted ELF: $490M Q4 revenue (+$30M vs est); EPS of $1.24 (vs $0.79 expected).
  • Road’s projected 2026 sales raised to $265M from $200M.
• Mixed Results:
  • ELF’s organic sales were bland outside Road; UK/Germany were weak.
  • Gross margin dipped slightly (to 71%) due to tariffs.
• Investor Reaction:
  • Despite the beat, shares fell 8%—margins and sustainability still in focus.
• Berry’s Take:
  • “Even if you’re not a beauty person, if you’re just an investor or a nerd like I am, this margin profile is what keeps the market’s attention on this sector.” (Ann Berry, 04:54)

2. Pepsi's Super Bowl Strategy: Inside the Playbook

[06:11–28:23]

The Super Bowl as Marketing “Super Bowl”

[06:11–07:11]

• The event is treasured by PepsiCo’s marketers—“everyone lobbies to go”—but it’s also “a ton of work and that’s what makes it fun.” (Mark Kirkham, 06:47)
• The big game is the pivot point for annual marketing, product launches, and merchandising resets.

The Investment and Year-Round Strategy

[07:11–09:10]

• The Super Bowl “is our first big spend” for the year—key for innovation and trade—not just an “exclamation point,” but a “kickoff.”
• Historical example: 2025’s Mountain Dew Baja Blast ad extended buzz and drove double-digit sales growth by leveraging the event as a springboard, not just a splash.

Cost, Context, and Holistic Spend

[09:10–10:31]

• 30-second ad slots estimated at $8–10M.
• Pepsi considers: what % of the overall budget, fit in marketing mix, potential for halo effect throughout the year.

The Multi-Phase, Multi-Platform Rollout

[10:31–12:09]

• Super Bowl ads used to be one giant reveal; now, it’s all about the “drum roll”—rolling out teasers and stories before the game, then riding the buzz after.
• Example: Pepsi’s campaign started during the AFC/NFC Championships, released teasers and a full spot the Thursday prior; used out-of-home (OOH) in Times Square and podcasts for buzz.
• Different brands = different strategies:
  • Poppy (acquired for $2B, Gen Z brand) withholds ad until game day, aiming for a mass surprise moment.
  • Pepsi rolls out messaging early and broadly.

Quote:
“Every brand does it differently... Poppy, they’re not releasing their ad until it goes live on air, and so there’s a different reason for everyone.” (Mark Kirkham, 11:46)

Why Poppy Gets the Big Reveal

[12:09–14:12]

• Poppy: “a brand that’s built itself very grassroots... young female consumer target,” now needs “to expose their message to the masses.”
• Super Bowl isn’t just about NFL fans; it’s about “fans of entertainment.”
• The spot is designed as a cultural moment, not just a sports ad.

3. The Polar Bear Moment: Cola Wars, Taste, and Culture

[15:11–18:48]

The Campaign

• Pepsi Zero Sugar campaign features polar bears—iconic for rival Coke.
• Roots in the “Pepsi Challenge” taste test (1975 & revival in 2025); Pepsi claims to have “won in every city.”
• Kirkham: “We want everyone to try Pepsi Zero Sugar, even cola-loving polar bears.”
• Focus is on taste and fun, using cultural icons to encourage consumer reappraisal.

Quote:
“To take that story to a big stage, you really need to bring it in a fun, creative way. The simplicity of the story is, hey, we Want everyone to try Pepsi Zero Sugar, even cola loving polar bears.” (Mark Kirkham, 16:26)

Zero Sugar’s Rise & Changing Language

[17:10–18:48]

• The shift from “diet” to “zero sugar” is real:
  • “Pepsi Zero Sugar grew 30% last year”
  • “Zero is the hero.”
• Modern dieters want taste AND healthier options; Pepsi has room to run in the zero-sugar segment.

Quote:
“There’s just always room for just taste and fun. But I think when you can have a portfolio that delivers on that but also adds functional benefits, that’s where portfolios will continue to evolve.” (Mark Kirkham, 27:55)

4. Internationalization of the Big Game and Beverages

[18:48–22:51]

• Super Bowl is now a “global stage,” not just domestic TV.
  • NFL is investing in Europe/Brazil/Paris, growing international fandom.
  • Pepsi has leveraged soccer (UEFA Champions League) as a zero sugar platform and cross-promotes via global moments.
• Poppy’s Super Bowl presence positions brand for global expansion: “You’re going to see Poppy in more places around the world in the coming years.”
• Poppy’s audience is “about 60/40 female-male”—brand moments are about “celebrating that moment in culture,” not just athletic achievement.

5. Gatorade, Gambling, and Cultural Moments

[22:51–24:20]

• The “Gatorade Dunk” at the end of the Super Bowl has become an iconic ritual, sparking betting markets on what color will be used.
• Cultural resonance is key: “No one’s told me [the color]. I’m not placing bets... The only people who probably know are the team itself, the guys mixing the Gatorade on the sidelines.” (Mark Kirkham, 24:13)

6. 2026 Sneak Peeks — Upcoming PepsiCo & Beverage Innovation

[24:20–28:08]

• Product Launches for 2026:
  • Pepsi Prebiotic Cola: launches next week; teased on Black Friday.
  • Gatorade: Lower sugar, no artificial colors, continuous innovation.
  • Muscle Milk: Full restage, “best tasting protein shake.”
  • Poppy: “Culturally tied” new flavors; viral stunts turn into products.
  • Mountain Dew: “Dirty Dew”—creamy, indulgent new line, both zero and full sugar.
  • Other PepsiCo brands: Lay’s, Doritos, Alani, Celsius, Rockstar—multiplying launches and restages.
• Emphasis on “Functional” Drinks: Protein, hydration, fiber—responding to wider wellness trends and the needs of GLP-1 medication users and others.
• Consumer-First Innovation: Every launch is about “consumer relevance,” not just category expansion.
• Ann Berry inquires about the protein boom—is it fad or real? Kirkham sees it as lasting: “Consumers are being more educated... it’s a broader functional space that will continue to be the area of focus.” (Mark Kirkham, 27:20)

Notable Quotes & Moments

• Ann Berry [04:54]: “This margin profile is what keeps the market’s attention on this sector.”
• Mark Kirkham [06:47]: “Everyone lobbies to go... It’s a hot ticket but also a ton of work and that’s what makes it fun.”
• Mark Kirkham [11:46]: “Every brand does it differently... Poppy, they’re not releasing their ad until it goes live on air.”
• Mark Kirkham [16:26]: “We want everyone to try Pepsi Zero Sugar, even cola loving polar bears.”
• Mark Kirkham [27:55]: “There’s just always room for just taste and fun. But... when you can have a portfolio that also adds functional benefits, that’s where portfolios will continue to evolve.”

Episode Timeline

| Timestamp | Segment | |-------------|------------------------------------------------------| | 00:42–05:25 | ELF Beauty’s Road acquisition analysis | | 06:11–07:11 | Super Bowl as Pepsi’s marketing “Super Bowl” | | 07:11–09:10 | Scale and annual strategy for investment | | 09:10–10:31 | Super Bowl ad cost and holistic planning | | 10:31–12:09 | The “drum roll” campaign rollout strategy | | 12:09–14:12 | The logic behind Poppy’s game-day unveil | | 15:11–18:48 | Zero Sugar, Polar Bears, and cola wars | | 18:48–22:51 | International audience, sports as global stage | | 22:51–24:20 | Gatorade’s cultural ritual and sports betting | | 24:20–28:08 | 2026 PepsiCo innovation pipeline & functional drinks | | 28:23 | Episode wrap |

Conclusion

This lively episode of Brew Markets delivers a double shot of insight—first, a bullish review of ELF Beauty’s bold (and controversial) bet on celebrity skincare, then a deep dive into PepsiCo’s high-stakes play for Super Bowl dominance and beverage innovation. Ann Berry’s canny investing commentary and Mark Kirkham’s candid, engaging style reveal how brands ride cultural moments, product trends, and consumer values—all at Super Bowl scale.

Missed it live? This summary covers every pivotal insight and quote.