Pepsi Making Jeans? (PEP)

| About: PepsiCo Inc. (PEP)

We know how much readers of The Retail Stock Blog like to debate the denim market. So we will not disappoint in providing more news on the topic! Women's Wear Daily reported today that high-end denim maker Blue Cult is going yet higher end, focusing on better construction, more simplified designs, and increasing wholesale prices.

Does someone see a future in premium denim?!

Entering the denim market at a different price point is... Pepsi (ticker: PEP). In diversifying its business into the fashion industry for the first time, the soft drink company will initially target 8-16 year-old boys and girls and then launch a sportswear line for 18-24 year-olds in 2007, reports Women's Wear Daily. WWD continues:

Manufactured in Mauritius, the new Pepsi jeans and cargo pants wholesale between 16 and 24 euros, or $19 and $29, and sturdy yet elegant parkas with sheepskin linings go for 33 euros to 50 euros, or $39 to $59 at wholesale. Valléau has plans to open a 750-square-foot Pepsi Jeans shop near the Les Halles district in central Paris in July. He said plans for six Pepsi Jeans stores in Dubai were also under way, and the first two openings are expected by September.

"The visibility of the brand is already extremely strong," Valléau said. "Customers will be curious when they see a Pepsi Jeans Store. The label will recall something from their past and they will want to go inside."

Comment: Cute, but who's buying?

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Tagged: , Processed & Packaged Goods
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