Pepsi Fizzles Out
With any good sugar high there’s always a crash—PepsiCo’s (+0.19%) North America business reported quarterly sales ($5.3 billion) down 3% and profit down 10%. The reason? It didn’t spend nearly enough time (or $$) promoting Pepsi and Mountain Dew.
That’s because Pepsi’s been chasing consumers’ preferences for healthier options. The dynamic low-sugar duo of its LIFEWTR and sparkling lemonade brands took center stage over the company’s flagship sodas.
And it wasn’t wrong to make the switch—U.S. soda demand has fallen about 1% each of the last three years. But this quarter’s poor performance reminded Pepsi: don’t neglect brands that account for 12% of your revenue.
(BroBible.com)
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