Posted by Dale Buss on October 16, 2013 05:39 PM
The size and speed of the decline in consumption of Pepsi and even Diet Pepsi in the US market has taken PepsiCo by surprise. Good thing the diversified global snack giant has been able to rely on sales of carbonated soft drinks and other beverages abroad and on improving performance by its Frito-Lay snack business.
Those were among the main takeaways from PepsiCo's earnings report and executive conference call with securities analysts on Wednesday, as CEO Indra Nooyi provided some color behind a mostly positive showing of a 2 percent rise in overall second-quarter revenue, a 35 percent gain in net income including some special factors, and $900 million in productivity gains.
PepsiCo posted strong growth in Asia, the Middle East and Africa across the board and in its Americas-wide snack business. "We have performed well because our portfolio of brands are extensive and strong, our products are on trend and relatedly diverse," Nooyi said on the call. "And we have a broad geographic footprint."Continue reading...
Posted by Dale Buss on September 13, 2013 12:41 PM
Frito-Lay loves the response its "Crash the Super Bowl" crowdsourced ads get for Doritos when they run during the Big Game every year, but the brand isn't resting on its laurels. For Super Bowl XLVIII on February 2, the PepsiCo snack house is expanding the program in two important ways.
In its eighth year of the highly successful "Crash" campaign, Frito-Lay plans to open the contest to would-be commercial creators from around the world, all 46 national markets where the 70 varieties of Doritos are sold, eliminating its previous restriction to the United States. Since it began in 2007, the annual contest has invited only American consumers to create and submit 30-second homemade ads celebrating their love of Doritos.
And the ad with the most consumer votes online not only will run during the Super Bowl on Fox from Met Life Stadium but also will garner for the first time a huge cash prize for the creator: $1 million. Plus, that winner and the creator of the ad that Doritos selects as its favorite, which also will run during the game, will have the opportunity to work with Marvel Studios on the set of the next Avengers sequel.Continue reading...
The Big Game
Posted by Dale Buss on August 22, 2013 07:04 PM
The first kickoff isn't even for two weeks yet, but already Fox is drooling at the possiblities for the post-season of the National Football League. That's because it seems likely to fetch around $4 million from brands for a 30-second spot in its broadcast of Super Bowl XLVIII on February 2, and it has already sold about 85 percent of its advertising inventory for the game.
That price wouldn't necessarily set a record, because CBS said it sold some ads for $4 million in its recent broadcast of the Super Bowl, according to Variety. But the figures do suggest that advertisers continue to covet the world's biggest marketing stage in part because it's the most-watched live event on the globe—and shows watched live on the TV screen keep disappearing.
"It's incredible the way people are attached to live sports, and certainly the NFL is the top of that," Neil Mulcahy, executive vice president of sales for Fox Sports Media Group, told the publication. "You know exactly the audience you're getting. You can figure out the kind of return on investment, becase it's always there."Continue reading...
Posted by Sheila Shayon on August 20, 2013 11:49 AM
The Seattle Police Department may just be the most clever—and coolest—bunch of law enforcers out there. The rain-soaked city recently celebrated Hempfest, the largest marijuana festival in the world, and instead of raining on the parade with pot-safety pamphlets and a hard-as-nails attitude, the department cooked up a pretty awesome, stoner-approved plan.
Dubbed #OperationOrangeFingers, the department handed out snack bags of Doritos adorned with stickers that featured a short list of reminders for marijuana enthusiasts, including: "Don't drive while high"; "Don't give, sell, or shotgun weed to people under 21"; and "Do listen to Dark Side of the Moon at a reasonable volume." The sticker also included a URL with information on the state's new laws regarding recreational marijuana use.Continue reading...
chew on this
Posted by Dale Buss on August 14, 2013 03:37 PM
Has Taco Bell played out the Doritos Locos Tacos space? The Yum! Brands fast-feeder will soon see as it has just announced the third installment in its wildly successful co-branded campaign.
Taco Bell announced that its Fiery "DLT" will be officially available nationwide next Thursday, with a marketing campaign following soon. It's the next step in the company's campaign to build on the huge success of the first flavor of the popular Doritos Locos Taco when it came out last year, Nacho Cheese, and the Cool Ranch flavor that Taco Bell revealed earlier this year. The brand will be offering taste tests through social media, and will make the new taco available early on August 19—a move that didn't go so well during the Cool Ranch launch.
The chain already has sold more than 500 million DLTs in total, almost single-handedly energizing its results over the last 17 months, so the next flavor will be crucial. And for the first time, Taco Bell chose not to borrow an exact flavor profile and product name directly from a chip already marketed by PepsiCo's Doritos brand.Continue reading...
Posted by Dale Buss on July 25, 2013 01:39 PM
PepsiCo is riding high on snacks and trying not to be brought low by its soft-drink business. But that doesn't mean the company is accepting the logic behind activist investor Nelson Peltz's attempts to get PepsiCo to spin off beverages and buy snack-happy Mondelez International.
Second-quarter food revenue in the Americas grew by 5 percent for PepsiCo while beverage revenues slumped by another 2 percent. Brands including Doritos and Tostitos, by Frito-Lay, drove PepsiCo's overall domestic growth, while its European business only chugged along and revenues in Asia, Africa and the Middle East combined, both beverages and food, grew by 6 percent.
Also, more evidence surfaced this week to bolster concerns recently expressed by PepsiCo CEO Indra Nooyi about the future of artificial sweeteners in beverages. Larry Young, CEO of Dr Pepper Snapple, agreed in a conference call that consumers "have concerns about artificial sweeteners." His company has lowered its sales outlook for the year.Continue reading...
chew on this
Posted by Dale Buss on July 22, 2013 12:49 PM
Oreos, Fritos, Doritos, Cadbury, Trident and Sunchips all on the same truck as they head to the supermarket? That's a vision of a highly symbiotic, cost-efficient brand and product portfolio and distribution scheme, if you ask Nelson Peltz. He'll be happy to see some other distributor getting the Pepsi into the beverage aisle and the Naked Juice into the refrigerators in the produce department.
That's part of the scenario being sketched by activist investor Nelson Peltz as he presses PepsiCo to spin off its uneven drinks business, then purchase Mondelez International so the two snack giants can combine their stables of diverse and powerful brands both in the US and international arenas. Such a global snack giant would have $70 billion in combined revenue and 17 snack brands that each has more than $1 billion in retail sales.
Peltz said at a recent conference that PepsiCo is at "a crossroads" with a beverage business that was losing market share in soft drinks to CocaCola and to which PepsiCo CEO Indra Nooyi has only recently—and seemingly grudgingly—given more marketing support.Continue reading...
Posted by Dale Buss on May 7, 2013 12:38 PM
If love is the universal language, snacks may be the universal food. And that's one reason the spinoff of Mondelez International from Kraft Foods last year looks more and more like a good move, at least for Mondelez and its shareholders.
Mondelez's portfolio of global snack brands—ranging from Oreo to Cadbury to Trident—relies on emerging markets for about 40 percent of its revenue right now, and by 2020 the company projects that 110 million households in India, Russia and Brazil will move into the middle class, the socioeconomic stratum where serious snacking begins in most markets because consumers have achieved the economic wherewithal for recreational eating.
"As they do, we believe they'll step up their chocolate consumption by about three times," Bharat Puri, Mondelez's senior vice president of global chocolate, told analysts recently, according to Advertising Age.Continue reading...