Business | General
Pepsi to refocus on soft drink sales
PepsiCo, the second-largest US beverage company, said on Friday it was launching a new marketing campaign to refocus attention on soft drinks, which have seen lagging sales.
- AP
- Published: 23:29 October 11, 2008
New York: PepsiCo, the second-largest US beverage company, said on Friday it was launching a new marketing campaign to refocus attention on soft drinks, which have seen lagging sales.
Carbonated soft drinks (CSDs) are "an important part of the franchise," chief executive Indra Nooyi told the trade publication Beverage Digest. "So rejuvenating CSDs is important."
In recent years, as consumers grew more health conscious, demand shifted from soda to bottled water, energy drinks and juices. Bottled water sales also slowed recently as concern grew over how much waste was created in the bottling and shipping of water.
"This is a multi-year commitment. We realise we have to stick with it, and the identity change is just the first step," she said.
The company plans new logos for Pepsi, Mountain Dew and Sierra Mist in the first phase of a multi-year campaign.
Shift
The move to shift some marketing attention to soft drinks comes in a week when investor concern led to a massive global selloff in stocks after the credit crisis has crippled the economy. The announcement was made at a meeting with bottlers held from Monday to Wednesday.
Slowing sales of CSDs - which are generally cheaper than energy drinks and other soda alternatives - have been dragging down results even as PepsiCo's Frito-Lay and overseas sales grow. Nooyi said she was optimistic that soft drink sales would eventually return to growth of one per cent to two per cent.
"With the decline in water, I think there's a decent chance the right kind of activity can certainly get some interest back in carbonated soft drinks," Beverage Digest editor John Sicher said. "I think Pepsi is betting on that."
More from Business General
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
