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.
Whenever we read anything about Millennial consumers, there is almost always mention of the personalisation trend as well as the importance of social media....
Ever wondered what fuels Anheuser-Busch InBev's acquisitional drive? Is it naked ambition? Faith? The good of mankind?...
Anheuser-Busch InBev is reportedly calling a halt to its Seth Rogan and Amy Schumer Bud Light campaign in the US....
Today is SABMiller's final day. Some time this evening, Brussel's time, the second-biggest brewer in the world will be subsumed into the biggest, creating a beer behemoth of unprecedented proportions....
- Interview - Bernstein analyst Trevor Stirling
- Is Irish whiskey ready to recognise its potential?
- Trump, local spirits and the IR role - The Analyst
- The European beer market - Focus
- Cannabis – A clear and present danger to alcohol
- Diageo appoints first programmatic marketing head
- Diageo strike threat postponed with fresh vote
- Pernod Ricard offloads Domecq brandies, wines
- Remy snaps up Seattle's Westland Distillery
- Sazerac poaches ex-Diageo government director