PepsiCo (PEP) Looks to Move Back Up the List with New 'Summer Time is Pepsi Time' Campaign
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PepsiCo (NYSE: PEP) recently went back to the drawing board and is now launching the first new advertising campaign for its flagship Pepsi-Cola in three years. after falling to number three in sales in the U.S. last year, behind Coke and Diet Coke (NYSE: KO).
Beverage Digest said U.S. sales of Pepsi-Cola and Diet Pepsi fell 4.8 percent and 5.2 percent, respectively, in 2010. Coca-Cola sales also slipped 0.5 percent and Diet Coke sales fell 1 percent.
The company’s new campaign, "Summer Time is Pepsi Time" just received finishing touches last week. The company has experienced the resignation of over 15 marketing executives over the last few years with the most recent being its chief marketing officer for U.S. beverages, who resigned earlier this month. Rumor is she left because she was unhappy with the amount of say she had in the campaign.
Pepsi will be seen on Simon Cowell’s “X Factor”; the company signed a $60 million sponsorship deal starting this fall.
PepsiCo’s Chairman and Chief Executive Indra Nooyi has been criticized for taking her eyes off the company's biggest brand. She has been focusing on healthier brands while setting an ambitious goal of more than doubling the company’s revenue of nutritious products to $30 billion by 2020.
"Is she ashamed of selling carbonated sugar water?" said Pat Weinstein, owner of Seattle-based Weinstein Beverage Co., an independent Pepsi bottler. "That's a question that is raised often by the most concerned of the independent bottlers."
Currently the majority of the company’s revenue comes from what the company calls “fun for you” foods, which includes Lay's potato chips, Doritos corn chips and Pepsi-Cola. Annual retail sales globally to these units make up around $20 billion. The company’s “good for you” segment makes up roughly 20 percent of the company’s total revenue.
PepsiCo raised its advertising expenditure on beverages by 30 percent this year and experienced a 2 percent increase in beverage sales in the first quarter, largely due to a 20 percent increase in Gatorade sales.
The company was planning on releasing a new cola called, “Pepsi Next,” but bottlers argued the company needs to focus more on its original Pepsi-Cola. Pepsi decided not to do a national roll out and only implement it into Wisconsin and Iowa this summer.
Shares of PEP are currently trading up on the day by $0.65 or 0.94 percent to $69.70.
Beverage Digest said U.S. sales of Pepsi-Cola and Diet Pepsi fell 4.8 percent and 5.2 percent, respectively, in 2010. Coca-Cola sales also slipped 0.5 percent and Diet Coke sales fell 1 percent.
The company’s new campaign, "Summer Time is Pepsi Time" just received finishing touches last week. The company has experienced the resignation of over 15 marketing executives over the last few years with the most recent being its chief marketing officer for U.S. beverages, who resigned earlier this month. Rumor is she left because she was unhappy with the amount of say she had in the campaign.
Pepsi will be seen on Simon Cowell’s “X Factor”; the company signed a $60 million sponsorship deal starting this fall.
PepsiCo’s Chairman and Chief Executive Indra Nooyi has been criticized for taking her eyes off the company's biggest brand. She has been focusing on healthier brands while setting an ambitious goal of more than doubling the company’s revenue of nutritious products to $30 billion by 2020.
"Is she ashamed of selling carbonated sugar water?" said Pat Weinstein, owner of Seattle-based Weinstein Beverage Co., an independent Pepsi bottler. "That's a question that is raised often by the most concerned of the independent bottlers."
Currently the majority of the company’s revenue comes from what the company calls “fun for you” foods, which includes Lay's potato chips, Doritos corn chips and Pepsi-Cola. Annual retail sales globally to these units make up around $20 billion. The company’s “good for you” segment makes up roughly 20 percent of the company’s total revenue.
PepsiCo raised its advertising expenditure on beverages by 30 percent this year and experienced a 2 percent increase in beverage sales in the first quarter, largely due to a 20 percent increase in Gatorade sales.
The company was planning on releasing a new cola called, “Pepsi Next,” but bottlers argued the company needs to focus more on its original Pepsi-Cola. Pepsi decided not to do a national roll out and only implement it into Wisconsin and Iowa this summer.
Shares of PEP are currently trading up on the day by $0.65 or 0.94 percent to $69.70.
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