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.


BLOG

US beer called "filthy water" as Czech president gets patriotic

The long-running spat between US and Czech brewers stepped up a notch this week after the Czech president described American beer as “filthy water”....

BLOG

Has beer gone to the dogs? Will it make you feel ruff? Has it got... OH, FORGET IT!

I've stopped short of covering it as a product launch story on just-drinks, but take a look at this. Released this month in the UK, Snuffle Dog Beer is already available in 25 markets....

BLOG

PepsiCo caught in Amazon attack

PepsiCo received high praise when it announced it was to launch its stevia-based Pepsi extension True exclusively on Amazon in the US....

BLOG

Diddy shows he's a Diageo man with prod at Patron

Sean 'Diddy' Combs, the US rapper and entrepreneur, has publicly turned against his apparent former favourite Tequlia brand, Patron, now that he is joint-owner of DeLeón Tequila....

just-drinks homepage



Forgot your password?