An area company that lost its decades-long contract to distribute Gatorade products and equipment has been awarded more than $1.6 million by a San Antonio jury.
San Marcos-based Alert Services Inc. won the award after a more than two-week trial last month in state District Court in Bexar County. The jury found Gatorade parent PepsiCo Inc. had failed to comply with its contractual agreement with Alert.
The distributor of athletic training supplies sold the sports drink to high schools, colleges and pro teams for 30 years before PepsiCo yanked the contract in 2019.
Alert’s customers have included the Houston Texans, Green Bay Packers, Trinity University, San Antonio Independent School District and South San Antonio ISD, the company previously said.
The jury awarded Alert almost $950,000 in compensatory damages for lost profits it sustained in 2019 and 2021 combined. It didn’t award any damages for the years 2022 through 2025, but allotted nearly $715,000 in punitive damages.
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An attorney for Alert and a Gatorade representative didn’t respond to a request for comment Wednesday.
Alert had been in business for 51 years when it was informed that PepsiCo was terminating the distribution contract. PepsiCo offered no explanation for ending the relationship, Alert owner Jenny Cox said in a 2019 interview after she filed suit.
“At one time, we were the only company that really pushed the product into schools — kind of got it from the ground floor up,” Cox said. “So their decision to take Gatorade from Alert Services is very hurtful, both personally because of our dedication to it, but also financially. It was a huge piece” of Alert’s business.
Alert had alleged that it learned after its termination that Gatorade employees steered the business to other companies in exchange for kickbacks. Four Gatorade employees were named as defendants in Alert’s lawsuit but they were dropped from the case a few days before the case went to trial.
Jurors determined there was “clear and convincing evidence” that PepsiCo acted with “malice” — meaning it had a specific intent to cause “substantial injury or harm” to Alert.
The jury also found that PepsiCo disparaged Alert’s business and misappropriated a trade secret.
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PepsiCo denied Alert’s allegations. The global beverage and snacks company said it was “entirely within its rights” to terminate the relationship with Alert.
“Getting cut from a team is not a reason to sue the coach,” PepsiCo said in a July court filing seeking to have the case tossed. “Alert has a case of hurt feelings and disappointment, not a viable cause of action.”
PepsiCo, known for such brands as Pepsi-Cola, Mountain Dew, Lays and Doritos, bought Gatorade in 2000.
A final judgment has not yet been entered by state District Court Judge Norma Gonzales, who presided over the trial. It couldn’t be determined if PepsiCo intends to appeal.
Despite the loss of the Gatorade distribution contract, Alert remains in business. It has 14 sales reps around the country and distributes a host of sports-related products including bandages, athletic wraps, braces and hydration equipment, its website shows.
pdanner@express-news.net