brand strategy

PepsiCo Snacks Win, Beverages Lose in US as Peltz's Merger Proposal Looms

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

Could a Mondelez Merger Be in PepsiCo's Future? Nelson Peltz Hopes So

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...

brand strategy

Mondelez Sees Huge Growth Potential in Snack-Happy Emerging Markets

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...

viral buzz

Pepsi Continues to Bask in Branded Content Glory with Top YouTube Views

Posted by Sheila Shayon on April 8, 2013 06:37 PM

Pepsi took YouTube by storm last month according to Google’s YouTube Ads leaderboard. The brand is benefitting from its latest viral branded content hit "Test Drive", which has over 33 million views. 

The video, which is the brand's second attempt on a spoof video, garnered more plays than any of 2012's leaderboard ads, earning 13 million more views than 2012's top performer, Nike's "My Time Is Now."

Samsung made the chart twice in March with its Galaxy S4 launch, while newcomers EA Sports, Adidas, ConAgra, ESPN, Doritos and the Anti-Defamation League’s "Imagine a World Without Hate" video, (the first non-profit to be so feted) all made it as well.Continue reading...

chew on this

Doritos Launching Doritos Locos Tacos Chips in Latest Brand Collaboration

Posted by Mark J. Miller on March 27, 2013 01:13 PM

A little over a year ago, Taco Bell’s Doritos Locos Tacos hit the market. There was no way to predict that the new menu item would become a phenomenon of sorts—selling one million per day last year. Neither Taco Bell or FritoLay, Doritos' parent company, could let the potential of massive sales slip from their fingers, so they did it again, launching a Cool Ranch version earlier this month to much fanfare. 

The launch created a nationwide spectacle as ravenous consumers scoured local Taco Bell locations for the updated version, which the company teased with an 'early release' (which ended up backfiring). Unaffected, the actual launch went off without a hitch, with millions of customers walking away finger-licking happy. "Cool Ranch Doritos Locos Tacos have been one of the most anticipated new menu items we've launched, and will be the biggest in our company history," says Rob Poetsch, a Taco Bell spokesman, in an email to MSN. "We're pleased with the overwhelmingly positive reaction from our fans, in fact, we've seen twice as many social media conversations in the first few days we launched."Continue reading...

brand news

In The News: Walmart, CBS, Southwest Airlines and more

Posted by Alicia Ciccone on March 27, 2013 09:38 AM

In the News

Walmart will test in-store lockers for online deliveries a la Amazon

CBS aquires 50 percent of TV Guide Network for $100 million.

Southwest Airlines becomes the official airline of golf.

California shoe company sues Under Armour for trademark infringement.

Facebook and TiVo continue to battle over thumbs-up symbol.

After weeks of rumors and potential leaks, the Miami Dolphins will unveil their new logo on April 25.

Doritos officially launches new global campaign and redesigned packaging.

Human Rights Campaign's red equal sign logo for gay marriage goes viral on social media.Continue reading...

brand news

In the News: FTC, Reader's Digest, Samsung and more

Posted by Dale Buss on March 13, 2013 09:39 AM

In the News

FTC clarifies rules for social and mobile advertising.

Reader's Digest reports big gains among advertisers and readers.

Samsung deals with high expectations for Galaxy S IV as it outspends Apple on marketing.

BBC World News launches global marketing campaign.

Boeing gets FAA initial approval of battery fix for Dreamliner and wins $15 billion order from Ryanair for current 737 plane, report says.

Cadbury's Silk undergoing brand "renovation."

Chevrolet accelerates dealer infotainment training.Continue reading...

event marketing

Big Brands Take Over SXSW to Mixed Fanfare

Posted by Sheila Shayon on March 11, 2013 03:30 PM

SXSW epitomizes how the cutting-edge becomes the status quo and eventually (but not yet) borders on the edge of passé. This year, “the event has a different feel, nearly as much a marketing event as it is about tech,” notes Digiday

The week-long festival in Austin, Texas is ever more a breeding ground for flashy campaigns, giveaways and concerts, a far cry from the festival's roots as a geeky tech meet-up. Brian Solis, principal analyst at Altimeter Group told CNET, "The original posse is probably aghast at what [SXSW] has turned into." While there is still plenty of tech and start up presence, the event is now, more than ever, a joint digital venture between the marketing teams of the biggest brands and emerging tech stars peddling cool products and innovations.Continue reading...

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