US Pepsi reports 9 per cent decline in revenue

21 April 2009

PepsiCo's beverage division in the US reported a nine per cent decline in revenue and a six per cent decrease in volume for the quarter.

Chief financial officer Richard Goodman, however, is unperturbed. He said that the company's focus for the quarter was largely on brand restages and innovation launches and both have been executed successfully.

The sales of  its fruit-based drinks category Tropicana, however, plummeted 20 per cent in the weeks following the introduction of new packaging.

Massimo d'Amore, CEO-PepsiCo Americas Beverages, said performance at Tropicana has picked up since the original packaging was reinstated. Trop50, a new line extension of light orange juice, has helped boost the brand's performance, he added.

PepsiCo also announced plans to acquire all outstanding shares of its two largest bottlers, Pepsi Bottling Group and PepsiAmericas, for $6 billion. (See: Pepsi offers to buy out its two bottlers for about $6 billion) 

Indra Nooyi, CEO said that the category still remains attractive and that maintaining a strong position in this business will be a key component of PepsiCo's overall success.