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.
Knowledge is power, or so they claim. So, with that in mind, here's an infographic, courtesy of Australian company Hangover Revivol, that breaks down exactly what is behind the common hangover....
Here's a round-up of the top stories on just-drinks last week, featuring William Grant & Sons, the Southern hemisphere's winemakers, SABMiller and Heineken, and Coke Light....
How many beer mugs can one man carry? ...
Here's a round-up of the top stories on just-drinks last week, featuring Pernod Ricard, The Coca-Cola Co, SABMiller's new Scotch whisky and Santa Rita Estates....
- Scottish Independence and Scotch Whisky
- Comment - Heineken's 'No' Cuts SABMiller Options
- SABMiller spurned by Heineken: The start of the en
- Irish whiskey eyes a slice of Scotch's global pie
- Can the New World Learn a Lesson from the Old?
- Diageo's Special Releases 2014
- LIVE BLOG: Industry responds to Scotland 'No' vote
- Diageo ups Johnnie Walker Formula One presence
- William Grant opens Tullamore D.E.W. distillery
- Rabobank warns of "mountainous task" for Scotch