News: Pepsi to push SoBe Life Water, Diet Pepsi Max in 2008

At the Consumer Analyst Group conference held in Boca Raton, FL, this week, Pepsi officials noted that they will be heavily emphasizing two beverage brands in the coming year: SoBe Life Water and Diet Pepsi Max.


This is primarily in response to The Coca-Cola Company‘s recent purchase of Glaceau and their Vitaminwater beverage, along with the continued success of Coca-Cola Zero.

In addition, they are preparing themselves for a challenging financial situation in the coming months:

Pepsi, the world’s second-largest soft drink maker behind Coke, reaffirmed 2008 projections of 3 percent to 5 percent case volume growth and mid-to-high single digit revenue growth. It also expects earnings per share of $3.72, about a 10 percent increase over 2007′s.

Pepsi is watching the economy for signs of a slowdown and also dealing with higher raw material prices, said Pepsi Chairman and CEO Indra Nooyi.

“We are well aware of the challenges in 2008 and we know full well it’s going to take more than a single action or initiative to address these challenges,” Nooyi said.

… In North America, beverage volume has been flat with gains in non-carbonated drinks, such as Gatorade and Lipton teas, offsetting declines in carbonated soft drinks.

Unlike Coca-Cola, though, Pepsi also has food divisions, Frito-Lay and Quaker, which contributed to revenue and operating profit gains in 2007. Pepsi expects continued growth abroad for carbonated beverages.

Pepsi recently broadened its Gatorade line-up with G2, a low-calorie sports drink, and Tiger, a Gatorade extension built around golfer Tiger Woods.