PepsiCo drops a strategic hint: fewer calories, energy drinks, recurring revenue | WARC | The Feed
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PepsiCo drops a strategic hint: fewer calories, energy drinks, recurring revenue
Health & well-being
PepsiCo selling a controlling stake in Tropicana and Naked Juice brands isn’t in itself a big deal for marketers – but what the FMCG giant is choosing to focus on instead says a lot about its view of the future of beverages and consumer preference.
Why it matters
A health focus and a need to find products that can bring customers into a closed ecosystem are now a major consideration in FMCG.
- The FT reported earlier this week that the company was selling control of two major juice brands in order to “steer our portfolio towards higher-growth” areas, in the words of PepsiCo’s vice-chair and CFO.
- The motivations are partly around profit, with juice less profitable than the average product in its portfolio.
- Healthy products are now the bigger focus for the company – juice faces growth constraints because of high sugar content – in zero-calorie drinks, energy, and light snacks.
- Another area of focus is the SodaStream – a countertop device to carbonate liquids – which the company bought in 2018, and that offers a higher-value product, that also establishes a recurring relationship with customers.
Sourced from the Financial Times
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