Pepsi Aims to Put Fizz Back into Brands

16 October 2008

PURCHASE, New York: PepsiCo will spend some $1.2bn (€877m; £682m) over the next three years as it overhauls a number of its soft drinks offerings, a process chairman/ceo Indra Nooyi says will impact on "every aspect of the brand proposition for our key brands".

Funding will come from the company's Productivity for Growth plan, which includes the closure of six plants and 3,300 job losses.

Omnicom's Arnell Group is redesigning PepsiCo's logo and packaging, with the white band currently in the middle of the logo now said to form a "smile" on Pepsi's main variant, a "grin" for Diet Pepsi and a "laugh" for Pepsi Max.

Nooyi's plan for transforming PepsiCo's brands involves changing "how they look, how they're packaged, how they will be merchandised on the shelves, and how they connect with consumers."

Other brands set to undergo a facelift are Gatorade – which will receive a "new contemporary identity" – G2, Tropicana, Tiger and Mountain Dew, which will be rebranded as Mtn Dew.

PepsiCo posted a 4% volume decline in North America in the third quarter, and Nooyi argues that reversing that trend would be "enormous".

She says: "A primary focus will be restoring growth to our North American beverage business.

“At the same time, we will increase our investment in developing markets, make selective investments to continue growing our global snacks business and accelerate our global R&D initiatives to help secure our future innovation pipeline."

Data sourced from; additional content by WARC staff