Blog: Soft drinks dream still alive in North America
Michelle Russell | 21 October 2011
Despite the North American soft drinks market continuing to be a challenging one, neither PepsiCo or The Coca-Cola Co appear willing to surrender just yet.
On the release of PepsiCo's third-quarter results last week, chairman & CEO Indra Nooyi admitted that the company has more work to do in its North America beverages division. Despite a small rise in volumes in the region, Nooyi insisted that the company is "intensely working" at driving growth in the region.
It was Coca-Cola's turn next, with the release of it's third-quarter results yesterday (18 October). Asked whether the company sees growth potential in North America over the next several years, CEO, Muhtar Kent was quick to defend the market.
"If you look at what we have been able to achieve here in the US ... we totally, respectfully, disagree that [no growth] is where our mind is," he said.
"Demographics in North America are in our favour ... we have every reason to believe that, if we can't grow here, it is our fault and we won't accept that."
While North America is unlikely to grow at the same pace as India or China, the region remains a part of the business models of most major soft drinks firms.
Challenges from rising commodity costs have meant both Coca-Cola and PepsiCo have had to increase prices in the region. But, while it may appear that beverage firms are treading water in what has become a struggling and rather shaky market, Coca-Cola and PepsiCo are clearly reluctant to give up completely on the American dream.
It seems even 250-year-old Cognac houses want to be like Google these days....
It's not even available on pre-order yet, but Apple's latest piece of kit has already got a breathalyser app....
just-drinks is now closed for the Easter weekend....
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. ...
- Focus - Pernod's YTD Performance by Region
- just On Call - Pernod shifts Scotch focus in China
- Focus - Heineken's Q1 Performance by Region
- Focus - Coca-Cola's Q1 Performance by Region
- Diet Coke "a work in progress" in US - Coca-Cola
- CFO of Diageo's United Spirits stands down
- Pernod Ricard sees YTD recover as sales increase
- BrewDog launches GBP25m crowd-funding attempt
- Africa "subdued" but Heineken sees Q1 rises
- Elements 8 revamps rum packaging
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research