Gatorade pays $300,000 to settle complaint over Usain Bolt game
PepsiCo-owned soft drinks giant Gatorade has agreed to pay $300,000 to settle a lawsuit brought by California's attorney general, Xavier Becerra. He filed the complaint, claiming Gatorade's Bolt game was misleading and could discourage children from eating and drinking healthily. In the game, track and field star Usain Bolt sped up when he touched a Gatorade droplet, but slowed down when he touched water. Between 2012 and 2013, Bolt was played 87 million times, with around 70% of players aged between 13 and 24.

Dive Brief:

Gatorade, owned by PepsiCo, agreed to pay $300,000 to settle the California attorney general’s complaint filed over Gatorade’s “Bolt” game, featuring track star Usain Bolt getting faster when he touched a Gatorade icon,and slowing down when he touched a water droplet, according to the San Francisco Chronicle and a statement from the attorney general's office.

California’s AG Xavier Becerra cited studies that found this type of game can negatively affect a child’s desire for healthy food. The game was played 87 million times between 2012 and 2013, and roughly 70% of the players were aged 13-24.

“Making misleading statements is a violation of California law,” Becerra said in a press release. “But making misleading statements aimed at our children is beyond unlawful, it’s morally wrong and a betrayal of trust. It’s what causes consumers to lose faith in the products they buy.”

Dive Insight:

Gatorade is paying the price for misleading advertising, but the entire food and beverage industry can learn a couple of lessons from it. The first is simply to not lie about a competing product in an ad campaign. And lastly, don’t lie about healthy products in a format that is geared toward children. It won’t end well, as Gatorade can attest.

It’s understandable that Gatorade wants to differentiate itself in the increasingly crowded sports drink market. The beverage is already a giant in the space, dividing about a 70% share with Coca-Cola’s Powerade. But that doesn’t mean the company isn't angling for a larger take of the $8.5 billion consumers spend annually on sports drinks. However, going after water is no way to win over consumers of other energy drinks. Bottled water is the nation's most popular drink category, with 12.8 billion gallons sold to consumers last year. And that doesn't count water that people drink from their own taps.

PepsiCo could take a note other manufacturers outside of the sports drink category which have discovered ways to stand out from the crowd — without getting sued under consumer protection laws.

In January 2016, Campbell was the first major company to tell consumers which of its products contained genetically modified ingredients by printing it on the label. It also plans to comply with the Food and Drug Administration's new Nutrition Facts panel by the original July 2018 deadline, even though the timetable was recently delayed by the agency. Campbell's actions aren't targeting competitors, but are instead making its own brand look more transparent.

Dollar General stores has made its mark by offering exclusive branded products. This past summer, the store has offered Oreo Mississippi Mud Pie cookies, a 16-ounce Coca-Cola can series honoring military veterans, Regal Cinemas brand popcorn and an exclusive six-pack of Mott's mango juice. These exclusives appeal to shoppers from a variety of demographics and bring them into the store.