US: PepsiCo puts portfolio at risk with new sweetener - analyst
PepsiCo announced the sweetener developments last week
PepsiCo's new sweetener innovation may damage the company's existing portfolio of low- and no-calorie beverages, an analyst has warned.
Wells Fargo said yesterday (21 February) that it remained “ cautious” over recently-announced sweetener developments as cannibalisation could outweigh gains. “We think many factors need to be considered including ultimate positioning of this sweetener,” the analyst said.
Wells Fargo said that while it was encouraged by PepsiCo's innovation focus, “time will tell” if it can revitalise PepsiCo's CSD category.
Wells Fargo's comments came after PepsiCo's presentation at the Consumer Analyst Group of New York conference yesterday during which PepsiCo CFO Hugh Johnston said the new sweetener, announced last week, will be “more evolutionary than revolutionary”.
Analyst CSLA said after the conference that PepsiCo will remain its top beverage pick for investors as the company's productivity drives and “new culture of savings” will continue to boost margins. PepsiCo doubled its productivity savings last year, CSLA said.
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...
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...
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...
PepsiCo China Ltd is seeking sustainable growth by enhancing brand awareness around the world and bringing innovative products to the marketplace....
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....
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