Analysis - PepsiCo off pace as The Coca-Cola Co sparkles
PepsiCo's sparkling category showed smaller growth than Coca-Cola's
In first-quarter results, announced today, the snacks and drinks maker reported a 3% increase in global beverage volumes, or just 1% on an organic basis. Meanwhile. Coca-Cola, which posted its Q1 results on Tuesday, saw beverage volumes increase by 4%.
Wells Fargo analyst Bonnie Herzog said: “PepsiCo delivered decent Q1 results, but we remain concerned about the health of the beverage business.
“A 1% global volume growth in beverages reflects continued underperformance versus Coca-Cola.”
Herzog also highlighted a 3% volumes drop for the PepsiCo Americas Beverages unit, led by “mid-single digit” declines in the CSD category. Coca-Cola reported a 1% drop in its Q1 North America sparkling beverage volumes, while in Latin America sparkling beverage volumes were up by 2% in the quarter.
On Tuesday, Coca-Cola announced planned changes to its US bottler system that are intended to lower expenses and stimulate growth in CSDs.
PepsiCo, meanwhile, is putting faith in new sweetener and flavour innovations to “reinvent” the struggling category. Today company CEO Indra Nooyi said she intends to treat CSDs “very carefully”.
PepsiCo has launched a new television advert for its namesake soft drinks brand featuring footballer Lionel Messi....
- Brown-Forman's march on premium whisk(e)y -Comment
- Where does AB InBev see the future of beer?
- SABMiller in Cent'l & E Europe - What is for sale?
- Are consumers getting tired of consuming?
- A-B InBev and its SABMiller divestments - Focus
- Brown-Forman to buy BenRiach Distillery Co
- Bacardi rolls out new global Martini ad - video
- Brown-Forman appoints new GTR marketing head
- Molson Coors' Rekorderlig Cider Cocktails - NPD
- Carlsberg's Shed Head and Bad Apple craft - NPD
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Emerging Drinks Industry Trends