Pepsi Revamps Giving Contest in Bid to Reward Small Groups

January 31, 2011, 10:10 am

PepsiCo is reorganizing its year-old, $20-million Pepsi Refresh charity competition, with several changes geared toward steering more of the prize money toward community and grass-roots organizations, according to The Wall Street Journal.

The beverage giant will eliminate the top $250,000 award in its monthly contest, which allocates grants based on online voting; increase the number of $50,000 grants; reduce from 10 to five the number of causes voters can select each day; and drop the environmental and health categories, which attracted alliances of groups that dominated the balloting.

The company says the changes are designed to infuse greater democracy into the selection process, which has been marred by allegations of vote-rigging and manipulation.

While drawing tens of millions of votes and extensive media coverage, Pepsi Refresh has yet to translate into bigger business for the company, which saw sales slip 9.8 percent in the first three-quarters of 2010.

Pepsi's bet on the charity contest as a major marketing and promotion tool is reflected by the firm's absence from last year's Super Bowl, marking the first time in 23 years the company eschewed advertising during the football championship, writes The New York Times.