US: Mid-calorie colas "DOA" - analyst
Recently-launched mid-calorie colas may be either "slow builds or something closer to dead on arrival," according to a beverage analyst. In a research note, Legg Mason analyst Mark Swartzberg said the findings were based on feedback from 51 US retailers who had given over shelf space to Coca-Cola's C2 and PepsiCo.'s Pepsi Edge colas.
"No one with whom we spoke says the products are selling briskly, with responses evenly split between selling 'not at all' and 'a little'," Swartzberg said.
"Our findings are hardly conclusive," Swartzberg warned, "as the products have only been available nationally since mid-June. However, the Coke system especially has placed a heavy emphasis on the products (described as the "strongest launch support since Diet Coke" by Coca-Cola Enterprises), and C2 is taking up a lot of space, including high-margin cold channel space previously dedicated to brand Coca-Cola, a brand that turns rapidly."
"Correspondingly, CCE has the greatest exposure to a failed or successful mid-calorie launch, by our analysis," Swartzberg added. "In an extreme worst case - including the assumption that C2 stays highly visible and does not sell at all - approximately $0.04 of 3Q EPS would need to be "found" for 3Q estimates that treat the launch as breakeven to remain unchanged."
A recent report on the UK soft drinks market showed that growth in non-carbonates at the expense of traditional carbonated soft drinks is much less marked in the on-premise sector than in the take-hom...
Pepsi-Co. has been removed from a Syrian blacklist of companies which have dealings with Israel, according to a report in the official Syrian newspaper al-Thawra....
Coca-Cola Enterprises has had its rating upgraded....
Pepsi has launched a new 50cl silver-coloured bottle for its Pepsi light soft drink as part of a major advertising campaign to roll out this summer in Spain....
Striking workers at Coca-Cola Enterprises' facilities in the US are to return to work....
Coca-Cola Enterprises has reiterated its 2005 profit outlook....
PepsiCo's president and CFO, Indra Nooyi, has been forced to apologise for remarks she made whilst speaking to the 2005 graduating class of Columbia University's Business School in New York City last ...
PepsiCo has confirmed that it is to drop its low-calorie drink Pepsi Edge....
- Interview - Bernstein analyst Trevor Stirling
- Is Irish whiskey ready to recognise its potential?
- Cannabis – A clear and present danger to alcohol
- The European beer market - Focus
- Trump, local spirits and the IR role - The Analyst
- Diageo appoints first programmatic marketing head
- Diageo strike threat postponed with fresh vote
- Diageo reaches deal in Stitzel legal row
- Remy snaps up Seattle's Westland Distillery
- Sazerac poaches ex-Diageo government director