just On Call - PepsiCo treads carefully on CSD price - CEO
PepsiCo is said to be developing a new range of sweeteners
PepsiCo's CEO, Indra Nooyi, has said she intends to deal with pricing strategies on CSDs “very carefully” ahead of a sweetener innovation the company claims will reinvent the category.
In a conference call with investors today (18 April), Nooyi said PepsiCo raised prices at the start of this year at the expense of volumes. However, she added that for the rest of the year, pricing will be more constrained.
Nooyi said: “This is a category (CSD) where you have to be careful and behave in a responsible and consistent way so that you don't destroy value in a business that requires reinvention.
"This industry requires responsible behaviour and we will try to make sure we play the carbs and non-carbs portfolio very carefully while getting ready for the reinvention of carbonated soft drinks.”
In February, Nooyi said PepsiCo is developing new sweeteners and flavourings that could “alter the trajectory of the cola business”. No further information has been released. However one analyst warned the development could cannibalise PepsiCo's existing portfolio.
Nooyi's comments follow today's release of PepsiCo's Q1 results, which saw group beverage volumes climb by 3%.
Nooyi said that Gatorade enjoyed a strong first quarter, and despite heavy competition from rivals in the sports nutrition category managed to gain share. “We feel very good about our sports nutrition strategy,” the CEO said.
PepsiCo India is one of the largest players in packaged foods and soft drinks in India. The holding became the new title sponsor of the Indian Premier League (IPL) for five seasons starting from 2013....
PepsiCo Deutschland GmbH is the second biggest player in carbonates in Germany. The company offers a wide product portfolio within carbonates, covering cola and non-cola carbonates through well-known ...
In 2012, Cía de Bebidas Pepsico continued to adapt to the gloomy economic climate by holding back prices, offering its core carbonates brands at lower retail prices than its main competitor Cía Servic...
Ranked sixth in hot drinks in 2012, the company has a strong presence in other hot drinks, in particular in chocolate-based flavoured powder drinks under the Toddy brand. Competing for the same target...
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