Q. IN THE MOVIE ‘GREASE’ ...When Sandy is on a date with the jock at the Frosty Palace, why is the picture on the wall behind them blurred out?
A. The picture being blurred is a Coca-Cola poster. One story is that Coca-Cola didn’t approve of the film’s content. Another is that Pepsi had a sponsorship deal with the film’s producer, and as such, demanded that they be the sole on-screen beverage. To avoid a costly reshoot, Paramount chose to blur the most visible of the Coca-Cola images. The resulting effect was crude to say the least.
The first two screenshots are from the original theatrical release.