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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Mercedes f One and PepsiCo are teaming up to capitalize

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Speaker 2: on the sports increasingly young audience and their shifting consumption habits.

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Speaker 2: The companies say the partnership is designed to capture the

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Speaker 2: next decade of growth across emerging markets for more. We

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Speaker 2: are joined now by the Mercedes f One CEO Toto

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Speaker 2: Wolf and PepsiCo CEO of International Beverages, Eugene Williamson. Thank

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Speaker 2: you both for joining us. Can I come to you first, Toto?

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Speaker 2: I know you're probably very excited about what lies ahead

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Speaker 2: at the weekend and the actual racing, but thinking about

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Speaker 2: this deal with PepsiCo, I mean, what is it that

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Speaker 2: you can offer to a business such as PepsiCo in

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Speaker 2: terms of the people you're reaching, the ability of your

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Speaker 2: brand to spread their message good morning.

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Speaker 3: First of all, it's important, Faust, to have an alignment

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Speaker 3: with the brands and that we partner. And you mentioned

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Speaker 3: your audiences. Our strongest growing since a very young people

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Speaker 3: females between fifteen and twenty four, and our female fan

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Speaker 3: population is forty two percent of the total. Our young

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Speaker 3: drivers have lots of social media activity, contrary to the

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Speaker 3: past we have great spot and entertainment on the track

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Speaker 3: and obviously some of the Drive to Survive episodes audiences

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Speaker 3: as well.

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Speaker 1: EU gee, let me come to you. I just picking

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Speaker 1: up on what Toto is talking about that Formula one

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Speaker 1: has changed kind of beyond recognition over the last few years.

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Speaker 1: New ownership, new kind of narrative, Drive to Survive has

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Speaker 1: had a massive impact. The demos changed quite significantly, the

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Speaker 1: US fan base has changed quite significantly. Why have you

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Speaker 1: waited so long to get involved? And why is now

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Speaker 1: the right time to get involved?

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Speaker 4: Formula One is a fantastic platform globally, is growing rapidly

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Speaker 4: one point six billion across the world, races in twenty

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Speaker 4: one countries, twenty four races across the world, and we

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Speaker 4: feel now is the right time for us to come

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Speaker 4: into the sport. So we signed up with Formula one

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Speaker 4: earlier this year, and then this week we're announcing an

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Speaker 4: amazing partnership with Mercedes MG Paterrono's Formula One team, Toto

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Speaker 4: and his team, and very much looking forward to tap

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Speaker 4: into this growing fan base across the world and really

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Speaker 4: leverage death fan base also with three of our brands,

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Speaker 4: gatorad Sting and Doritos, three brands with distinctive audiences, and yeah,

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Speaker 4: looking forward to an amazing couple of years in this partnership.

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Speaker 2: Can I ask you then a bit more about that, Ugiene?

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Speaker 2: I mean, how does this help you secure demand from

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Speaker 2: a new group of customers? I mean what kind of

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Speaker 2: customers does this put you in front of that you

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Speaker 2: wouldn't have found anyway?

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Speaker 4: Yeah, So I think there's a couple of ways to

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Speaker 4: look at this. So first of all, as I said,

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Speaker 4: Formula one is a truly global platform. So for us,

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Speaker 4: we have an opportunity to expand some of these brands

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Speaker 4: across the world, especially in developing an emerging market where

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Speaker 4: Formula one already has a lot of races, but also

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Speaker 4: where the fan base is growing and growing rapidly. Also,

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Speaker 4: Formula one now is stepping into gen Z, so your audience,

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Speaker 4: it is also an audience that is almost fifty to

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Speaker 4: fifty split between male and female consumers. So for us,

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Speaker 4: a unique opportunity to expand the penetration for all these

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Speaker 4: three brands. And then specifically with a Gatorade, which is

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Speaker 4: going to be the phase of our partnership with the

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Speaker 4: Mercedes AMG Patronos team. As a unique opportunity to help

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Speaker 4: fuel the drivers and help them perform at their peak.

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Speaker 4: As you know, drivers lose a lot of body weight

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Speaker 4: during the races. Gatorade has sixty years of sports science

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Speaker 4: started at the University of Florida, fueling the Gators and

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Speaker 4: the football team in the US, and now we're looking

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Speaker 4: forward also to bring that sports science to the world

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Speaker 4: of Formula one, working with the team and helping them

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Speaker 4: perform at their peak.

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Speaker 1: So let me come back to you. The situation around

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Speaker 1: Formula one is kind of beyond recognition as to where

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Speaker 1: it was even just a few years ago. The sport

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Speaker 1: has changed massively. You've recently sold a steak in your

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Speaker 1: part of the team, fifteen percent stake in your holding

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Speaker 1: five percent stake of the team. Effectively, can I ask

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Speaker 1: kind of whether or not you think that there is

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Speaker 1: further sales to come, whether or not you think some

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Speaker 1: of your partners are going to be selling down as well.

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Speaker 1: People looking now to crystallize the value that has been

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Speaker 1: created over the last few years in this huge transformation

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Speaker 1: that has taken place around some of these F one teams.

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Speaker 3: I think you need to split the question into Formula

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Speaker 3: one continues to grow very strong. We have all races

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Speaker 3: are sold out. When you consider Austin last year was

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Speaker 3: the single largest event in the United States with four

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Speaker 3: hundred and forty thousand people, so it is growing. A

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Speaker 3: good situation in terms of let's say our business side

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Speaker 3: is that the contracts that we sign its sponsorship or

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Speaker 3: promotion with race, trikes or till money, they are very predictable.

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Speaker 3: They are between three and ten years now. So that's

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Speaker 3: why let's say in the midterm, with good visibility, how

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Speaker 3: the spot develops. But then you also need to stay

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Speaker 3: humber and you need to look at things that function

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Speaker 3: and other things that don't. The sport needs evolution or revolution,

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Speaker 3: and we need to handle it with great care. But Stephano,

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Speaker 3: Domnicali and Liberty do just that. When it comes to,

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Speaker 3: you know, monetization, my background is managed capital, but I

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Speaker 3: don't see the team as this. This is our family

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Speaker 3: holding with three shareholders, with Mercedes Emails and myself. But

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Speaker 3: George Kurtz, the founder of CrowdStrike, is somebody that we've

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Speaker 3: known since a long time. His company has been a

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Speaker 3: partner since a long time. He's a racer and he's

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Speaker 3: going to leverage our network in the United States, and

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Speaker 3: this is why we've partnered up in my investment holding,

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Speaker 3: and I believe on the business side will help us

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Speaker 3: to grow further.

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Speaker 1: So, so just give me a name. Who's going to

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Speaker 1: win the weekend? This is an amazing end of the season.

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Speaker 1: Who's going to win?

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Speaker 3: Well, I hope that Georgia Kimmy win the race, and

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Speaker 3: beyond that I would be just like a fan and

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Speaker 3: getting my popcorn out and watching what happens to the

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Speaker 3: other three guys.

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Speaker 1: Okay, the other three guys, it's going to be. It's

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Speaker 1: going to be quite the weekend. Okay, guys, thank you

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Speaker 1: very much. Indeed, Toto wolf Usine Williamson great to get

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Speaker 1: that story.