just On Call - PepsiCo eyes further Gatorade innovation
PepsiCo said it is very optimistic about the Gatorade innovation pipeline
Soft drinks giant PepsiCo is planning more innovation for Gatorade following positive signs since the February launch of its G-Series.
The Gatorade Company unveiled a new line of sports performance drinks in February as part of the brand's image makeover.
The G-Series range includes; Gatorade Prime 01, Gatorade Perform 02, Gatorade Perform 02 (G2), and Gatorade Recover 03.
Speaking at the firm’s earnings conference this morning (20 July), PepsiCo chairman and CEO Indra Nooyi said the G-Series is the first major innovation from Gatorade in around ten years and that the firm is planning for more in the near-term.
“We are very optimistic about the innovation pipeline," she told analysts.
"We are just a few months into the launch and while the early indications are very positive, I think there is more upside in the future. We are very optimistic about the future of the whole G-Series launch and as we go into 2011 you will see a lot more innovation around G-Series, different flavours for different groups, people who like exercise versus people who are hardcore athletes.”
She added: “There will be a lot of interesting innovation coming out of Gatorade. The core Gatorade franchise is moving very very nicely, the advertising is working and we feel very good about where Gatorade is heading.”
PepsiCo this morning reported a drop in second quarter profits of 3% on currency fluctuations and costs to integrate its bottlers.
For the 12 weeks ended 12 June, PepsiCo's net profits fell to US$1.6bn, compared to $1.66bn in the same period of the previous year.
The drop was a result of integration charges associated with the merger of its bottlers of $155m.
Despite this, PepsiCo said the integration is “working well”.
“There are no surprises,” Nooyi said. “Everyone has blended in very well. If anything has been a surprise how quickly the organisations have come together. It feels like it’s always been this way and it’s only been a few months. It is working so smoothly, you really don’t know who used to work for which organisation. The integration is on track.”
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