My Cub Foods had this model of Pepsi machine a few years back. It's long gone from my Cub, but there rests this example in the vending area of the Super 8 in Burlington, IA. Hell, it might be the same one.
It's difficult to see, but yes, that is a spurt, er, spray of soda erupting from the tip of the bottle he holds at his waist. There's a fine line between blatant and inadvertent sexuality in advertising. I wonder which this is.