PepsiCo to tinker with beverage brands

Posted: 10/9/2009 2:24 PM  6 Comments |  Email
Tagged Companies: PepsiCo | Gatorade | Beverage Digest | SoBe | O.N.E. World Enterprises

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PepsiCo executives recently told bottlers its plans to tinker with its beverage brands.

Beverage Digest, reporting from the Pepsi Bottler Meeting Sept. 21-23 in Los Angeles, described new plans for SoBe, Gatorade, Amp, canned coffee, and Sierra Mist.

The beverage giant said it may relaunch Sierra Mist as a “health and wellness platform, possibly with new sweeteners,” BD reported. The change would follow the lemon-lime soda brand’s most recent repackaging, announced just last October.

PepsiCo has recently struggled with rebranding. It watched Gatorade sales continue to slip after a much-touted packaging revamp that moved the brand’s emphasis from its lightning bolt emblem to a giant G, and pulled a new package for Tropicana Pure Premium Orange Juice after consumers objected.

The company had more success with a repackaging of SoBe Lifewater, which put the brand in a twisted bottle. That package debuted at the same time as its first three zero-calorie varieties sweetened with Purevia, a natural sweetener derived from the stevia plant. BD reported that PepsiCo will add more zero-calorie varieties to the Lifewater line, and will also transition core SoBe from its iconic glass bottles to PET.

In other non-carbonated beverages, Gatorade G2 will see a reduction from its already-low 25 calories per serving. The company is also exploring zero-calorie variants of Propel, and is planning RTD coffee “value offerings” through Starbucks’ Seattle’s Best brand.

On the energy front, PepsiCo is considering an AMP juice line in PET, BD reported, and will add new sugar-free AMP flavors. The company is also planning a new energy shot to replace its recently-scrapped AMP Energy Shot.

On core Pepsi, the company will place greater emphasis on its “performance with a purpose” theme, BD reported, and the company promised institutional support for its bottlers decisions.

Hugh Johnson, president of Pepsi-Cola North America Beverages, told bottlers that “When you invest, the franchise company will have your back,” BD reported. That could be good news for coconut water marketer O.N.E. World Enterprises, which recently announced an investment from the Pepsi Bottling Group.

Source: BevNET.com Staff

I don't know why (maybe this is a part of the company's secret strategy) but almost all Pepsi's coolers on the streets of the city of Tomsk, Siberia are empty or sometime store just few (2-3) cans of Andrenaline Rush (quite expensive for local consumers). The coolers are not replenished for months. In other cities of Siberia the situation w/ Pepsi distribution is often even worse – its beverages are rare in retail outlets w/ no merchandising or marketing support at the point of sales. It seems that the company has to tinker with its inefficient distribution first.

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It's quite unfortunate that PepsiCo is switching from glass bottles to PET for SoBe. They're distinct and I've never heard a bad thing about them.I felt like they'd sold out enough when they got rid of the creative, cartoony lizard labels and replaced them with mostly text, but this is lame. It's sad that Fuze did this, too.

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@ Joseph. Sobe Life Water is the only Sobe's that come in the plastic bottles. The Sobe drinks like the Liz Blizz or the Elixers still come in glass bottles like they always have.

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PEPSI PLEASE DON'T CHANGE SOBE FROM GLASS TO THAT TOXIC PLASTIC!!!!!

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The cost of goods (cogs) is a driving force behind the switch from glass to PET. PET allows the bottler greater flexibility not just in cost but in production with the use of blow tubes and of course environmentally the use of PET allows the incorporation of recycled plastic. The coolers are also blown out in many of the large format stores that I enter as a consumer in the States. PepsiCo recently aquired the 2 largest bottlers of their products - PBG & PAS. This aquisition will bring the majority of the bottling directly back under PepsiCo and the supply chain/production are 2 areas of opportunity for process improvement. Coolers are blown out many times due to a production issue where inventory falls short and in some cases it is a merchandising issue where the company rep isn't keeping up with the displays to keep them stocked properly. Cooler inventory is an area that is driven by the demands of the store owner and the bottler - many times the stores contractually agree to what products their coolers will hold. As the consumer, you always have the final say – if there is a product that you want in your store you need only request it from your local vendor and they can make sure they have it available for you.

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Hello? Nik? Uhm...it's Siberia.

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