Blog: PepsiCo's 'drinkify' is no core strategy, but has Asian appeal
Andy Morton | 2 January 2013
The term 'Drinkify' popped up in a few end-of-year review lists, but it seems the new trend for “liquid snacks” apparently being pushed by PepsiCo's CEO Indra Nooyi is neither new nor trending.
The Financial Times flagged up the term last month after Nooyi mentioned it in an industry conference speech. The newspaper said PepsiCo was embarking on a strategy of combining its food and beverages to come up with products such as drinkable oatmeal. Before too long, other media picked up on the report and were running with the idea, often towards some rather imaginative Dr Moreau-style snack and drink hybrids. Think Pepsi-flavoured crisps or Frito-laced cola, if you dare.
Turns out PepsiCo have been thinking along these lines for some time now, since at least 2010, when it bought Russian dairy, baby food and juice manufacturer Wimm-Bill-Dann, a company spokesperson told me. The FT report “was wrong and taken out of context”, the spokesperson said. “The background is that it's not a core strategy. It was just a one-liner at a beverage conference.”
That's not to say we'll never get the chance to try out Diet Frito Pepsi, though we may have to live in Asia. Innovation is a big deal to PepsiCo in developing markets, as shown by the opening of a US$40m research & development centre in Shanghai in November.
The company is proud of the brand loyalty it has built up in China through aggressive marketing and hopes combining those brands can bring exponential rewards. Tastes in Asia differ from PepsiCo's core US market - check out these cheese lobster Lays - and it will use the R&D hub to test what works and what doesn't. Maybe cheese-flavoured soft drinks is just what the region has been waiting for.
Last year was tough for The Coca-Cola Co. So staff in Atlanta won't be pleased to read that Pepsi has overtaken Diet Coke as the no. 2 soda brand in the US. ...
A bit of football fun for a Friday. Anheuser-Busch InBev has released the ad that will accompany its new Budweiser 'Dream Goal' campaign, that seeks to find the UK's best amateur goal. ...
No sooner had Anheuser-Busch InBev taken a gentle pop at the craft beer segment during February's Super Bowl, than the world's largest brewer has challenged the sub-category's target market in New Yor...
A few wry grins will have been raised in the offices of Dr Pepper Snapple Group today. ...
- Is A-B InBev/SABMiller 'Mega-Merger' Off?
- Comment - 'Craft' and the Danger of 'Romance Copy'
- Sustainability: What Craft Teaches Multi-Nationals
- Pernod takes positives from China Cognac bounce
- Ethiopia competition to remain "intense" - Diageo
- Bacardi bags a Bourbon with Angel's Envy buy
- SPI Group 'disappointed' over Stolichnaya ruling
- Anheuser-Busch InBev lines up new chairman
- Bacardi Brown-Forman here to stay
- Carlsberg takes on Stella Artois in new campaign
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Champagne: Less Than Bubbly
- Beer Market Insights Africa 2014