New PepsiCo Boss Rejects Major Strategy Shifts

25 October 2006

PURCHASE, New York: Healthier products, a new approach to packaging and focus on emerging markets will be part of PepsiCo's "status quo" strategy to help it stay profitable in a cola-weary climate.

Executives at the world's number two soft drinks and snacks maker have revealed that designs for the flagship Pepsi brand's packaging will rotate every few weeks.

Among the planned "better for you" products are Tava, a carbonated, vitamin and mineral-filled fruit drink said to boost metabolism and weight loss.

It will be a direct competitor to Envi, a calorie-burning soft drinks venture announced by arch rival Coca-Cola Company and Nestlé [WARC News: 10-Oct-06].

PepsiCo also plans to roll out Gatorade AM, aimed at fitness fiends who want milder flavors in the mornings.

The snack innovations unveiled by new ceo Indra Nooyi included the Flat Earth brand made from fruits and vegetables.

She told analysts she did not see the need for any major changes and would continue broadly with the strategy of her recently retired predecessor Steve Reimund.

Under his watch the company moved from being known chiefly for its sodas and salty snacks to a $33 billion (€26.3bn; £17.6bn) business that has embraced healthier options such as Tropicana juices and Quaker Oats cereals.

Data sourced from; additional content by WARC staff