Blog: Tough year ahead for soft drinks firms?
Michelle Russell | 28 April 2011
just-drinks has been busy this week bringing you news on the raft of first quarter results released by soft drinks firms.
Among them, we've had PepsiCo, The Coca-Cola Co, Dr Pepper Snapple Group (DPSG) and Coca-Cola FEMSA.
PepsiCo, this morning (28 April) reported a drop in first quarter profits, as did Coca-Cola Enterprises and Embotelladora Andina. The Coca-Cola Co, on the other hand, saw profits rise in the quarter, along with DPSG and Coca-Cola FEMSA.
But, while the latter firms can be pleased with their profits, all have pointed to rising costs as a potential problem heading into the remainder of 2011.
The CSD market in North America is yet to fully recover and high global commodity cost inflation and difficult macroeconomic conditions are threatening to take their toll on the top-line of these firms.
New figures show that economic growth slowed sharply in the US in the first quarter of the year. GDP slowed to an annual rate of 1.8% in the three-month period, from 3.1% in the final quarter of 2010.
Consumer sentiment is clearly still weak and spending power is being undermined by higher food and petrol prices, government spending cuts and ongoing high unemployment. Soft drinks companies could find that the rest of the year gets tougher, rather than easier.
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. ...
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