just On Call - PepsiCo treads carefully on CSD price - CEO
PepsiCo is said to be developing a new range of sweeteners
PepsiCo's CEO, Indra Nooyi, has said she intends to deal with pricing strategies on CSDs “very carefully” ahead of a sweetener innovation the company claims will reinvent the category.
In a conference call with investors today (18 April), Nooyi said PepsiCo raised prices at the start of this year at the expense of volumes. However, she added that for the rest of the year, pricing will be more constrained.
Nooyi said: “This is a category (CSD) where you have to be careful and behave in a responsible and consistent way so that you don't destroy value in a business that requires reinvention.
"This industry requires responsible behaviour and we will try to make sure we play the carbs and non-carbs portfolio very carefully while getting ready for the reinvention of carbonated soft drinks.”
In February, Nooyi said PepsiCo is developing new sweeteners and flavourings that could “alter the trajectory of the cola business”. No further information has been released. However one analyst warned the development could cannibalise PepsiCo's existing portfolio.
Nooyi's comments follow today's release of PepsiCo's Q1 results, which saw group beverage volumes climb by 3%.
Nooyi said that Gatorade enjoyed a strong first quarter, and despite heavy competition from rivals in the sports nutrition category managed to gain share. “We feel very good about our sports nutrition strategy,” the CEO said.
PepsiCo has launched a new television advert for its namesake soft drinks brand featuring footballer Lionel Messi....
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