US: Cola innovation no elixir for PepsiCo - analyst
PepsiCo released its full-year results yesterday
PepsiCo's North American beverage operations are “still a work in progress” despite the company's bullish stance on cola innovation, an analyst has warned.
Wells Fargo said today (15 February) that beverage innovation was “a long-term fix” for PepsiCo because of strong competition in the North American market. “We question whether this is truly the turning point for (beverage unit) PepsiCo Americas Beverages,” the analyst said.
After PepsiCo released full-year results yesterday, chairman & CEO Indra Nooyi said the company is developing new sweeteners and flavourings that could “alter the trajectory of the cola business” in North America. Nooyi said PepsiCo intends to lead “disruptive innovation” to shake up a struggling category that has not seen significant innovation since diet colas in the 1960s.
Wells Fargo also said PepsiCo's position in China has been “meaningfully strengthened” since its tie-up with Tingyi, “especially in the CSD and juice businesses”. PepsiCo reported yesterday that it is now 1.5 times bigger than its nearest competitor in China.
PepsiCo's results were a mixed bag, with its food units outperforming beverages.
This month, Ray Rowlands of Drinksinfo Ltd follows up on the reports that PepsiCo is planning to launch a premium brand into the burgeoning US bottled water market next year, in an attempt to accelera...
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