Seeking Alpha

PepsiCo CEO gets real

  • PepsiCo (PEP +0.2%) CEO Indra Nooyi made an interesting comment on the evolving habits of the U.S consumer during a speech last week at the Aspen Institute (h/t Just-drinks.com).
  • The exec says soda drinkers are moving away from diet products to consume products with real sugar due to concerns over artificial sweeteners.
  • The company maintains its ahead of the curve with real sugar versions of Pepsi and Mountain Dew already on the market.
Comments (6)
  • Shaduc
    , contributor
    Comments (1814) | Send Message
     
    I've been consuming a lot of sugar and reverted to a couple of sugar laden sodas pet day. Then I saw the sugar content of the Schweppes Ginger Ale @29.8 gm/serving will prompt me to go back to Diet Coke and yes Pepsi Max. Of course, I squeeze natural Lemon into the soft drinks ...
    9 Jul 2014, 10:25 AM Reply Like
  • Drew Robertson
    , contributor
    Comments (347) | Send Message
     
    concerns over obesity? Not so much.
    9 Jul 2014, 10:28 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1427) | Send Message
     
    Rather than concentrate on diet aspects, Pep needs to concentrate on price and the taste quality. Pepsi needs to fully utilize it's snack brands to have grocery stores sell it's drinks as a loss leader to pump up sales and get people into the doors and brand.

     

    I remember when Coke was all stingy with it's drink and then Pepsi came on the scene with a bottle twice Coke's size and at a better price. The real sugar and throw back all sugar formula and the fact that Pepsi tastes better and is more hip along with better price points should be emphasized.

     

    Pepsi should be killing Coke given it's snack division, one must wonder why they don't ever make stores put Pepsi right along side it's chips and thus have it's drinks in multiple locations.
    9 Jul 2014, 10:42 AM Reply Like
  • Shaduc
    , contributor
    Comments (1814) | Send Message
     
    Frito Lay is raising the blood pressures of the kids of Cn, just like KFC and McDonalds.

     

    Frito Lay is called Pepsi (snacks) on the packaging (why confuse the potential consumer)!
    9 Jul 2014, 10:48 AM Reply Like
  • SWBanks
    , contributor
    Comments (252) | Send Message
     
    Capt (LOVE the screen name, BTW!), what is your location???

     

    Every grocery store I have ever been in (New England, US, where I've lived most of my life, as well as a recent extended trip to WA, US, and recently living in ND, US for the last year) has the soft drinks in the same aisle as the snacks. Those aisles make me positively giddy as an owner of both KO and PEP shares. At the front of the store there are always KO and PEP coolers with cold 20 oz bottles right in front of the checkout aisles which usually have a good smattering of FritoLay snacks in there, though they do compete with Mars candy brands as well as things like Jerky and gum.

     

    Same deal with convenient stores in the US, the snacks and sodas are in multiple locations usually next to each other or in extremely close proximity. Larger bottles like the 2 liters are usually at the bottom of the fridge space with 20 oz bottles at eye level, and usually the snacks are right behind you as you look at the cooler. Typical convenient stores I see will also often have a rack of FritoLay snacks and a PEP or KO (or both) cooler with 20 oz bottles near the checkout area.

     

    From what I've seen in retailers in the US, PEP does a good job of getting its snacks and drinks next to each other, and FritoLay is also usually right near KO as well.

     

    Anyway, I would love to see real sugar make a stronger comeback in the US market for soft drinks. I first had real sugar Coke down in Mexico on a trip in 2008, and it was a totally different drink! When PEP came out with the throwback brands right after KO started doing real sugar mixes in 8 or 12 oz glass bottles (can't remember the size now) at the front of Walmart and a few other retailers a few years ago, I almost ALWAYS grabbed one out of the cooler on my way through check out, and I almost never drink fizzy soft drinks otherwise. I'm sure the old school glass bottles had a bit of a retro attractiveness for me, but the flavor was far superior to HFCS.
    10 Jul 2014, 04:44 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1427) | Send Message
     
    Meijers does a bad job of separating their drinks and snacks, often placing the soda's all the way to the back ends of the stores while having the chips closer to the front. Honestly, I don't mind, but it would be smart if Pepsi was to twist a few arms at Meijers to at least allow them to have a small pepsi only section next to their vast array of potato and other snack chips if they continue to separate the two. Krogers has them often in separate isles but they are usually one and two, right next to one another unlike Meijers. Could be that they want people to be forced to go all the way in the back if they really want soda. You would think Meijers would be smart enough to have chips and sodas in the same isle.
    10 Jul 2014, 11:12 AM Reply Like
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