PepsiCo and its Chief Executive Indra Nooyi gave the clearest evidence of its emerging new strategy when the company’s first quarter results were released last week.
• “We are aggressively moving our portfolio to package and product combinations with fewer calories.”
• “We’ve broadened our beverage portfolio to lessen our reliance on colas and today we have the leading non-carbonated beverage portfolio in the US.”
• “Globally just 12% of our revenues come from trademark Pepsi and less than 25% comes from carbonated soft drinks on a global basis.”
• ‘Guilt free’ beverages with under 70 calories per 12oz serving now account for 45% of PepsiCo beverage revenue.
• ‘Good for you’ beverages, such as bottled water and unsweetened ready to drink teas, accounted for 25% of 2016 first quarter sales.
Mountain Dew Kickstart, with 40 calories per 8oz serving, generated more than $300 million in retail sales after three years in 2015, adding 34% volume growth in the first quarter of 2016.