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International: Pepsi to rotate packaging for flagship brand

25-October-2006
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International: Pepsi to rotate packaging for flagship brand

Don’t get too used to Pepsi’s package graphics. They’re going to change – every few weeks. In a conference call with analysts today, new Pepsi-Cola executives said that the beverage giant’s packaging look for its flagship cola would rotate every few weeks.

It is part of a more aggressive marketing push to communicate innovation overall at the company, including new sweeteners and juices added to carbonated soft drinks to make them “better for you” brands.

‘Healthier’ bubbles

The marketer also said that the Pepsi-Cola brand would get a new advertising campaign next year under the “Feel the Pepsi” theme.

Noting that price discounting “won’t reverse sales trends”, Pepsi-Cola North America CEO, Dawn Hudson, said, “We want to give consumers the bubbles they love in a healthier way.”

Among planned products are Tava, a carbonated, fortified fruit drink that contains vitamins and chromium, which is a mineral said to boost metabolism and weight loss. PepsiCo also plans to roll out Gatorade AM, a version of the isotonic drink aimed at morning exercisers who want milder flavours. It will also introduce Propel-branded flavour packets to add to bottled water.

For Tropicana, which has been hampered by orange costs, the company will turn to new package design and higher-margin products, including Tropicana Pure, a line of 100 per cent juice drinks to be sold in supermarket produce aisles. Its Tropicana Essentials line will add the omega-3 fatty acids associated with heart health; Pepsi said Tropicana will be the first national orange-juice brand to have it.

International’s role

About 45 per cent of PepsiCo products were marketed under the Smart Spot programme that identifies snacks and beverages in the better-for-you and good-for-you standards, the company said. Executives will continue work in developing health and wellness products, by using less sodium or switching to more-healthful oils, including Flat Earth vegetable and fruit chips.

International will play a major role in the growth plans as well. PepsiCo International provides 35 per cent of the company’s revenue and 81 per cent of profits.

Just six markets contribute 75 per cent of PepsiCo’s international sales, according to Mike White, Chief Executive of PepsiCo International, providing a significant growth opportunity. He said that the company could add $500 million in five years by building its nut, popcorn and other savory snacks.

PepsiCo CEO, Indra Nooyi, however, said that the company’s strategy was largely status quo. “I don’t see any need presently to change a strategy that’s been working,” she said, noting her 23-day tenure.

Source: AdAge.com

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