sip on this
Posted by Dale Buss on December 3, 2013 01:47 PM
If Coca-Cola and Cargill aren't on the horn already, they should be. Coke is staking the future of calorie-reduced soft drinks on stevia, and ingredient giant Cargill is staking its future in that segment on stevia-based ingredient systems.
Meanwhile, PepsiCo is approaching the future of calorie reduction in soda from a different direction. CEO Indra Nooyi recently pooh-poohed the long-term usefulness of stevia, so her company reportedly has steered toward an intriguing alternative: a new chemical called S617 that cuts the amount of sugar and high-fructose corn syrup required in beverages to obtain the same sweet taste.
One thing is for sure: Both soft-drink giants have to do something. US soda consumption last year declined by 1.2 percent, which brought the category back down to 1996 levels, according to Beverage Digest. And even diet-soda consumption has begun to hit the skids as American consumers appear increasingly concerned about artifical sweeteners and are turning away from soft drinks to alternative beverages as a whole.Continue reading...
sip on this
Posted by Dale Buss on November 11, 2013 03:23 PM
PepsiCo and Coca-Cola have been doubling down on emerging markets, despite feeling tremendous pressure to grow their business in developed regions such as the United States and Europe. And PepsiCo just made a massive US$5.5-billion commitment to expand its operations and sales in Mexico over the next seven years.
CEO Indra Nooyi announced that PepsiCo and its partners plan to double their current production capacity in India, to ramp up distribution infrastructure especially in rural markets, to boost its collaborative program with Indian farmers, and to continue to expand the range of foods and beverages in its current India portfolio of eight brands.
"India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo," Nooyi said in a statement. "We believe we've only scratched the surface of the long-term growth opportunities." In a press conference in New Delhi on Monday, Nooyi also couldn't resist a playful dig at her biggest competitor, telling reporters that the Pepsi brand is "more youthful" than rival Coca-Cola.Continue reading...
The Big Game
Posted by Dale Buss on November 4, 2013 04:47 PM
Last year SodaStream got stymied in its efforts to take direct aim at Coke and Pepsi with an ad during the Super Bowl. But this year the startup has promised to come right back at the soft-drink giants with an in-your-face spot during the next Big Game on February 2 at Met Life Stadium.
The difference, SodaStream International CEO Daniel Birnbaum told Advertising Age, is going to be that Fox is airing this year's telecast while CBS is the network that denied SodaStream's efforts to air an ad last year depicting exploding Coke and Pepsi bottles to dramatize SodaStream's environmental pitch about "saving" bottles.
"I hope that [Fox] will be a little more courageous than CBS, because CBS's behavior was just pathetic," Birnbaum told the magazine. "CBS chickened out and they just didn't want to take a risk of pissing off Coke and Pepsi who are big, big sponsors of theirs." The un-aired ad has since garnered over 4.9 million views on YouTube.Continue reading...
sip on this
Posted by Dale Buss on October 16, 2013 10:53 AM
Buffeted by what CEO Muhtar Kent called "headwinds" and aided by "tailwinds" around the world, Coca-Cola reported a good but not great third quarter and vowed once again to meet its target of doubling 2010 revenues by 2020.
Meanwhile, PepsiCo today reported a 1.5 percent revenue increase for the period while US beverage sales slid by 2 percent.
While much of the attention to the Coke brand these days is how marketers wrangle with the obesity issue, sales of the globe's leading soft-drink brand still grew 2 percent by volume during the period. About 70 percent of the company's sales are soft drinks.
Overall sales volumes including non-soda drinks such as teas and bottled waters grew by 2 percent in the United States. But it was emerging economies that gave Coca-Cola enough momentum to post a 4 percent rise in earnings per share for the period, in line with analysts' expectations.Continue reading...
Posted by Dale Buss on August 15, 2013 10:47 AM
Coca-Cola continues to adjust its defensive crouch with the publication of a new ad meant to shore up consumer confidence in the artificial sweeteners in its diet drinks.
Regular Coke sales were down by 2 percent in the first half, continuing a long slide. But it turns out that it's not just sugary soft drinks Americans are growing uncomfortable about; it's diet drinks as well. Though switching to Diet Coke is a typical gambit by those who want fewer calories but don't want to give up Coca-Cola altogether, sales of the company's diet sodas actually fell 6 percent by volume during the first half, three times the rate of decline for its regular drinks.
Coke's research determined that consumer hesitance over aspartame, the sweetener in Diet Coke, is largely to blame even though the chemical sweetener has been around for decades. Still, Nutritionists and consumer advocates are raising doubts about the long-term effects of aspartame.Continue reading...
sip on this
Posted by Dale Buss on July 1, 2013 06:53 PM
Coca-Cola is going further out on the stevia limb just weeks after the CEO of its arch-rival said that the extract of a South American bush "unfortunately does not work well with colas."
What does Coke know that PepsiCo CEO Indra Nooyi doesn't? She cast doubts on the long-term effectiveness of stevia as a sugar substitute in colas with her remark to analysts, even though Pepsi's use of stevia in the Australian version of its mid-calorie Next brand comprised the biggest commitment to stevia so far by either giant.
Coke's debut of stevia in a cola has been carefully planned and seems to have a few things going for it. First, it's via a new drink called Coca-Cola Life that will debut initially only in Argentina, an obesity-conscious, westernized market that also is familiar with stevia because of its long-time use in some form or another on the continent. The company said it will explore rollout of Life in other markets as well. Life will have about half the calories of regular Coke.Continue reading...
sip on this
Posted by Dale Buss on June 25, 2013 01:42 PM
Coca-Cola is going back to the future in more ways than one—glass packaging is returning, and so is an attitude about Coke's role in the world.
Coke is a big participant in the return of glass bottles to the soda-packaging market. In an effort to proliferate the selection of packaging types and sizes for ever-pickier consumers around the globe, the company has helped make sales-growth rates in glass bottles outpace those of soda in much more common plastic bottles and aluminum cans, according to Nielsen per the Wall Street Journal. However, even in comeback mode, glass still accounts for just 2 percent of the $21 billion in US soft-drink sales tracked by Nielsen.
While PepsiCo and Dr Pepper Snapple Group also are participating in a trend spurred by a cool factor for younger consumers, nostalgia for older consumers and the fact that they can be sold at a higher profit margin, it's Coke—whose original glass bottle for Coca-Cola became one of the world's most iconic forms of packaging—whose moves have been most interesting.Continue reading...
Posted by Dale Buss on June 18, 2013 09:27 AM
7-Eleven franchisees are accused by feds in immigrant exploitation scheme.
Starbucks to start displaying calorie counts on menus later this month.
Susan G. Komen Foundation names new CEO.
3M adds new products to its healthcare line.
AOL nears profitability in Patch bet on local news.
AT&T introduces solar-powered charging stations.
Boeing signs customers for stretch 787, Airbus also gets order for A380 and Embraer gets big launch order for jets from SkyWest.
Cheesecake Factory returns to growth mode.
Chrysler sees key deadline near in Jeep-recall dispute with US government.Continue reading...