Analysis - Kickstart shines for PepsiCo on damp Memorial Day
PepsiCo had a tough Memorial Day
PepsiCo's latest innovation Kickstart has gained early traction in the US despite the group's other brands taking a hit from bad weather over Memorial Day, an analyst has said.
The Mountain Dew extension, which launched in February, “appears to be off to a strong start”, Well Fargo's Bonnie Herzog said in a note today (30 May). The note is based on a Well's Fargo survey of convenience store retailers over Monday's holiday, traditionally the start of soft drinks' main selling season in the US.
Despite Kickstart's positive response in the survey, Herzog said she remains “sceptical” about the long-term pricing and placement strategy of the product.
Another innovation that enjoyed a strong Memorial Day, Dr Pepper Snapple Group's Ten portfolio, “could see stronger penetration over time as awareness builds”, the analyst said. Dr Pepper Ten, a low-calorie version of Dr Pepper, was launched in 2011, with other varients following last year.
PepsiCo was the “most negatively affected” by rain and cold weather on Memorial Day because of its high market share in cities where temperatures were lowest, Herzog said. The survey showed that convenience store soft drink sales received a 2% boost from the holiday compared to 6% last year.
Bad weather throughout Q2 saw survey respondents predict a 1.3% sales rise over the same quarter last year, the note said.
While PepsiCo has lost ground to Coca-Cola in some HW soft drinks categories, including RTD tea, bottled water and carbonates, PepsiCo is in a much stronger position in HW packaged foods. The company’...
In 2012, Cía de Bebidas Pepsico continued to adapt to the gloomy economic climate by holding back prices, offering its core carbonates brands at lower retail prices than its main competitor Cía Servic...
The final death count of Typhoon Haiyan, which hit the Philippines last week, is still a long way from being known. The relief effort is well underway, however, and drinks companies are among those th...
Ranked sixth in hot drinks in 2012, the company has a strong presence in other hot drinks, in particular in chocolate-based flavoured powder drinks under the Toddy brand. Competing for the same target...
PepsiCo China Ltd is seeking sustainable growth by enhancing brand awareness around the world and bringing innovative products to the marketplace....
- Analysis - SABMiller to add bolt-ons in Africa?
- A-B InBev's Move on Tennent's Super Makes Sense
- India: Everyone's Favourite Spirits Market
- Brand Diversification Driving Craft Brewery Growth
- Analysis - Stock Spirits: Poland's number one
- Diageo scraps Arthur's Day, but singer left sad
- PepsiCo CEO sees "profound" change in US consumers
- William Grant sinks GBP185,000 into "No" camp
- SodaStream silent on John Lewis pullout in UK
- William Grant & Sons boosts Travel Retail team