Coke and Pepsi are now coming to grips with that reality.Ĭoca-Cola has spent considerable resources in recent months rebranding Diet Coke and Coke Zero, which is now called Coca-Cola Zero Sugar. But even as colas fade in popularity among some consumers, they are still a hugely important business for both companies. The cola wars lost some relevance in recent years as both companies sought to diversify their beverage businesses to account for changing health demands of consumers. Coke was among the most hotly contested brand battles across all U.S. The move heralds a throwback to the days when Pepsi vs. “We’ll go toe-to-toe and increase our spending in colas in particular.” Losing share to its competitor is “not our cup of tea,” she added. “Despte moderately increasing our media on trademark Pepsi over the past three years, our share of voice has fallen dramatically relative to our key competitor, who has substantially stepped up their media spending on colas over the past two years,” she said. She suggested that Pepsi was not keeping pace with competitors, alluding to Coca-Cola without specifically naming the company. The North American beverage setback came despite PepsiCo spending big money on two Super Bowl ads in the period, one for brand Pepsi and another one for Mtn Dew.īut on Thursday’s earnings call CEO Indra Nooyi said that PepsiCo was still not spending enough on its cola business. In the first quarter revenue fell 2 percent, compared with a companywide 2 percent gain that was powered by strong growth in international markets and consistent performance from its Frito-Lay snacks unit. ![]() The unit, which includes brands like Pepsi-Cola, Mtn Dew and Gatorade, has been a constant sore spot for the company, vastly under performing other divisions. ![]() Its executives pledged to pump more money into its struggling soda business after its North American beverage unit delivered its third straight quarter of disappointing results. PepsiCo on Thursday conceded that its marketing spending was not adequately keeping pace with Coca-Cola.
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