PepsiCo’s bid to regain control over their distribution in the US has received another blow overnight with bottler Pepsi Americas rejecting their takeover offer. Last month PepsiCo made a takeover proposal to their two largest bottlers, Pepsi Bottling Group (PBG) and Pepsi Americas (PAS), in a move designed to allow them to react quicker to market changes by taking over distribution. The offer has now been rejected by both bottlers, who claim the proposal undervalues their worth. PepsiCo currently... ...Read more »

First quarter profit at The Coca-Cola Company has fallen by 10 per cent, as currency fluctuations and one-time costs outweigh an increase in unit case volume of 2 per cent.Internationally, the Company achieved unit case volume growth of 3 per cent led by strong gains in the key future growth countries of India (31%) and China (10%). Latin America was resilient, while they “outperformed the industry” in Europe despite “significant macroeconomic challenges” leading to a 2 per... ...Read more »

PepsiCo has proposed to acquire all of the outstanding shares of common stock it does not already own in its two largest anchor bottlers, The Pepsi Bottling Group and PepsiAmericas, in a move that has surprised analysts. The offer, which represents a premium of 17.1 per cent over the closing price of each company on April 17, has been made to provide the world’s second largest non-alcoholic beverage group with greater control over distribution and to cut costs. The total value of the deals... ...Read more »

PepsiCo has filed a lawsuit against major competitor The Coca-Cola Company, alleging false advertising that unfairly tarnishes their Gatorade brand. The owners of the world’s largest selling sports drink have taking umbrage with a campaign in the US, which implies that Coca Cola’s Powerade ION4 is the more “complete” sports beverage because it has magnesium and calcium. The campaign has showcased photos of Gatorade bottles cut in half beneath slogans such as “Don’t... ...Read more »

Stevia, a sugar substitute with no calories that has been dubbed by some as the ‘holy grail’ of sweeteners, has now been introduced into sports drinks. All Sport and Dr Pepper Snapple Group are launching All Sport Naturally Zero, a zero-calorie sports drink sweetened with rebiana (an all-natural sweetener from stevia) to capitalise on the interest that has swelled in stevia since Pepsi and Coca-Cola announced their intentions to launch products with the ingredient last year. Since then,... ...Read more »

PepsiCo has reported net revenue growth of 10 per cent to US$43.3 billion for 2008, although a 3 per cent increase in net revenue for the fourth quarter suggests growth is beginning to wane. Indra Nooyi, PepsiCo Chairman and Chief Executive Officer, said the company was well positioned to cope with America’s recession. “PepsiCo’s operating agility and disciplined execution delivered solid results in an extremely difficult year,” she said. “We expect 2009 will present... ...Read more »

Givaudan, one of the world’s leading flavours and fragrances companies, has identified a bitter taste receptor which could pave the way for even more stevia products following the approval of the ingredient in countries including Australia and the US last year. Givaudan has applied for patents related to its discovery of the bitter taste receptor triggered by Rebaudioside-A (also known as Reb-A), the new Stevia-derived ‘natural high intensity sweetener’. Understanding how bitterness... ...Read more »

Major Australian based food and beverage manufacturers have, for the first time, publicly made available company action plans which spell out in black and white how and when they will market a range of their products. Australian Food and Grocery Council CEO Kate Carnell said that the commitment is in-line with the Council’s recently announced Responsible Children’s Marketing Initiative. “Companies participating in this initiative have publicly committed to advertise to children... ...Read more »

PepsiCo is looking into the mindset of a key segment as they embark on a major new branding initiative. Despite a failing economy, employment woes and countless other concerns, a key segment of Millennials/Generation Y – people who were born between 1980 and 1990 – remain confident about what 2009 will have in store for them. According to an omnibus survey conducted by StrategyOne on behalf of Pepsi, four out of five Millennials are hopeful about the future as the New Year approaches,... ...Read more »

PepsiCo and their UK bottler, Britvic, have announced they will use one of the hottest trends in Japan, QR (quick response) codes, to strengthen ties with their consumers. The codes will appear on around 400 million Pepsi cans and bottles in the UK. QR codes can be employed for promotional purposes, to gain more traffic to mobile-enabled websites or to give out information. The Japanese immigration service uses them as passport stamps. In the case of Pepsi, it will enable consumers to receive entertainment,... ...Read more »