Pepsi Bottling Group has eliminated about 45 of the 58 positions at its bottling and warehouse facility in Wilmington, Del. •• PepsiCo announced it has selected TBWA\Chiat\Day Los Angeles as its communications agency for the Pepsi brand in the United States and Arnell as its design agency for brand identity and packaging innovation for Pepsi as well as other signature brands. •• The Pepsi Bottling Group, Inc. announced a multiyear initiative designed to enhance the company’s operating capabilities around the world. The restructuring program is expected to result in annualized pre-tax savings of $150 to $160 million upon completion. The initiative, which the company is calling Structured to Succeed, has four primary objectives: 1. Strengthen PBG’s customer service and selling effectiveness; 2. Simplify decision making and streamline the organization; 3. Drive greater cost productivity to adapt to current macroeconomic challenges; 4. Rationalize the company’s supply chain infrastructure.
The Dr Pepper Snapple Group reported a 31% drop in third-quarter net income amid sluggish demand, particularly for premium products. “Without a doubt, this is one of the toughest environments the beverage industry has faced in many years,” said Chief Executive Larry Young. “With disposable incomes falling, consumers are thinking harder about what they buy.” The company posted net income of $106 million, or 41 cents a share, down from $154 million, or 61 cents a share, a year earlier. Excluding restructuring impacts and separation-related costs from the May spinoff from Cadbury PLC, earnings fell to 45 cents from 63 cents. Revenue fell 2% to $1.51 billion, but Dr Pepper Snapple said it would have risen 5% excluding the impact from losing distribution rights to Glaceau drinks after Coca-Cola Co. acquired the brand’s parent company. •• Skinny Nutritional Corp. announced results for the third quarter ending September 30, 2008. Revenues for the third quarter of 2008 totaled $970,593, compared to $134,761 for the same quarter in 2007. Revenue for the nine months ended September 30, 2008 totaled $1,193,635, compared to $195,503 for the first nine months of 2007.
LAW AND POLICY
A recent decision to deny a bottled water plant on the Santa Fe River in Florida is being challenged in court.
This fall, Washington University will phase out almost all sales of bottled water. •• Karpati Water, a Sydney, Australia-based company, has come up with an innovative way of producing drinking water from fruit. •• A Fortune Magazine article examined the relationship between big corporations and environmental non-profits, highlighting the relationship between Fiji Water and Conservation International. •• The Seattle Times profiled The DRY Soday Company. •• Otsuka Beverage Co Ltd recalled 8 million bottles of Crystal Geyser mineral water after receiving 75 complaints in October about its smell. Spokesman Kazuhiko Horiuchi said the firm did not find any abnormalities in the water, but the plastic bottles may have absorbed smells to which they were exposed during storage.
nuun and company, inc., makers of nuun and ‘U’ hydration products, announced the arrival of Tim McGee in the newly formed position of Vice President of Sales and Marketing. McGee comes to nuun with more than 20 years of beverage sales and marketing experience at Pepsi.. McGee’s key responsibilities will be to develop and drive expansion of the sports specialty market, as well as identify and implement sales strategies in a more mainstream retailer base. •• DC Brands International, Inc. announced that they have added Brian Heffernan to their sales team to lead the company’s retail efforts. Mr. Heffernan previously worked for Red Bull.
Skinny Nutritional Corp. signed new agreements with three additional Anheuser-Busch beverage distributors in the state of Minnesota. The deals bring Skinny Water to a market of 7 million consumers in the state of Minnesota. •• Hobarama, LLC/BAWLS Guarana announced the addition of three new partners to the brand’s distribution network: Bay Area Distributing (Oakland), LBH/Dr. Pepper Bottles (Western Kentucky) and JD Distributing (Northern New Jersey). •• DNA Beverage Corporation announced that it has recently completed the build out of more than 300 of Circle K’s 500 C-Stores located throughout Florida.
On November 24, 2008 at approximately high noon, Go Fast Jet Pack pilot, Eric Scott,will attempt to fly the Go Fast Jet Pack across the Royal Gorge in Canon City, Colorado. The distance that Scott must cross is 1,500 feet from canyon wall to canyon wall, with nothing but the Arkansas River 1,053 feet below. •• Food scientist and TV personality, Alton Brown, is the new face of Welch’s ad campaign for its 100% Grape Juice made from Concord grapes. Known for his animated and engaging explanations of food science, Alton Brown will be appearing in television, print and online advertising, as well as in-store merchandising for Welch’s 100% Grape Juice. •• For the fifth time, WhiteWave Foods Company has been named a 2008 Green Power Leadership Award winner by the U.S. Environmental Protection Agency. The annual awards recognize the country’s leading green power purchasers for their commitment to helping advance the development and use of renewable energy. •• The Pepsi Bottling Group Foundation announced a charitable contribution to the Fisher House Foundation, an organization that provides comfortable family residences for military families at all major U.S. military hospitals. The $25,000 donation will be made in honor of the nearly 3,000 PBG employees who have served in the U.S. Armed Forces. It’s the second consecutive year that the PBG Foundation has made the contribution. •• Coca-Cola North America announced a partnership with Mexican superstar and goalkeeper Francisco Guillermo “Memo” Ochoa. Memo will become an official Coca-Cola spokesperson and will participate in various marketing and public relations initiatives including customer appearances, autograph signings and meet and greets with passionate soccer fans around the U.S. •• Red Bull launched the Red Bull Cliptomaniacs TV series on the UK’s Sky channel Nuts TV this month. The show will feature tricks and stunts from the company’s portfolio of sports and athletics across the world. •• International Flavors & Fragrances Inc. announced that Robert M. Amen, Chairman and Chief Executive Officer, will present at the Morgan Stanley Global Consumer & Retail Conference on Tuesday, November 18, 2008 at the Crown Plaza Times Square Hotel in New York City. •• Midwest Coca-Cola Bottling Company, Recycling, LLC (CCR), in partnership with Holiday Stationstores, the Recycling Association of Minnesota (RAM), and Hennepin County launched a new program aimed at increasing recycling outside the home. Giant, Coke bottle-shaped recycling bins have been placed at Holiday stations.