Pepsi raises stake in coconut water company
PURCHASE, N.Y. — PepsiCo has upped its investment in O.N.E., a coconut water company.
Terms of the transaction were not disclosed, but PepsiCo noted that it now has the majority stake in the company.
"Coconut water is one of the fastest-growing categories in the U.S. beverage market, and one in which we see a great deal of potential. Our investment in O.N.E. is an investment in the future," said Massimo d’Amore, CEO of PepsiCo Beverages Americas.
Sunny Delight updates supply chain, data systems with new investment
CINCINNATI — Sunny Delight is refocusing its North American business with the acquisition of a manufacturing plant owned by the J.M. Smucker Co., and is updating all five of its North American manufacturing facilities and data systems.
The $70 million upgrade, which will diversify Sunny Delight’s business in North America, will improve its "corporate profitability, manufacturing efficiency and environmental footprint," said Ellen Iobst, the company’s SVP manufacturing and technology.
Terms of this transaction, which is subject to regulatory approval, were not disclosed.
Dr Pepper Snapple Group tackles citrus-soda category with Sun Drop
PLANO, Texas — A citrus soda made by Dr Pepper Snapple Group is making a major splash in the Southern states in which it’s currently sold. And with plans for nationwide distribution early next year, it has the potential to rival the success of Mountain Dew.
Sun Drop is made with orange juice and more caffeine than Mountain Dew. Southern fans have used it in everything from glazes for holiday turkeys to alcoholic mixed drinks.
Although it’s been sold since 1928, the drink didn’t receive its recent boost in popularity until MTV took an interest in it in June 2009. Since then, the beverage manufacturer and the Viacom network have developed a revenue-sharing agreement, and Sun Drop got a publicity makeover; MTV’s new Scratch marketing arm redesigned the drink’s advertising, image and can, which will hit shelves in January. In an effort to reach the 15- to 17-year-old demographic, Sun Drop also will appear in such MTV programming as “The Real World.”
DPS’ sudden focus on Sun Drop stems from the company’s interest in directing consumer interest to flavored sodas, a noncola segment of the soft drink industry in which the company specializes. Cola success has wavered slightly in the past decade; according to Beverage Digest, cola sales comprised 60.5% of the U.S. soda market in 1999, and 55.4% of the market in 2009. In contrast, DPS brands within the market have grown.
"Let’s face it," said Jim Trebilcock, chief marketing officer at Dr Pepper Snapple Group, "carbonated soft drinks is a pretty stagnant, slightly declining category. But we’re growing volumes and gaining share. It’s because we try to create differentiation."