epsi and Coca-Cola have reached an out-of-court settlement following a lawsuit filed by Pepsi in a Chicago District Court. Coca-Cola was charged with making misleading comparison of its Powerade Option drink with Pepsi's Gatorade Rain. Pepsi maintained that Coke's claim of its drink being lower calorie was portrayed as superior to Pepsi's high energy drink.

A Pepsi spokesperson said post-settlement that consumers needed to be made aware of its functional sports drink's benefits. Coca-Cola has agreed to stop airing its Powerade Option 'Drag Race' commercial, which apparently contained inaccurate information. The company also agreed to modify another commercial, called 'Laces' portraying the carbohydrate calorie content and relative energy benefits of the two products. In addition, Powerade Option will submit the revised ad to a review by the Better Business Bureau's National Advertising Division (NAD), which had recommended earlier that Coke's Powerade Option does not provide the same energy benefits that Gatorade does. ... more