Pepsi aims to replace food with drinks (STORY BELOW), because using teeth is sooooo last billion years and sheeple cannot be bothered with this orally archaic nastiness, their mouths are better occupied by sanitized talking points and less than important controversies/ fads upon which they will formulate "opinions".
FROM THE WALL STREET JOURNAL
PepsiCo Inc. is betting that consumers want to "snackify" drinks.
As part of its strategy to tap into the market for more nutritious convenience foods, the company is hoping people will pay a premium for a new pureed fruit product that it considers thick enough to be a snack rather than a beverage.
Tropolis, an 80-calorie fruit puree, which comes in brightly colored pouches, will be marketed to moms and kids. PepsiCo's Tropicana unit is rolling out apple, grape and cherry Tropolis pouches in test markets in the Midwest next month, at $2.49 to $3.49 for a four-pack.
It's not clear how profitable a niche product that is more complicated to produce and distribute than juice will be for the food and beverage giant, whose shares have been underperforming U.S. rivals Coca-Cola Co. and Dr Pepper Snapple Group Inc.
Coke and Dr Pepper have no significant food business and have made bigger bets on soda, which is by far the industry's most profitable product.
PepsiCo is best known for its namesake cola and Lay's potato chips, part of its "fun-for-you" (Doritos, Mountain Dew) and "better-for-you" (Baked Lay's, Diet Pepsi) portfolios, which make up $50 billion of the company's $60 billion in revenue.
But Chairman and Chief Executive Indra Nooyi is staking her reputation on building out the company's "good-for-you" portfolio, uniting the Tropicana, Quaker and Gatorade units under one umbrella and expanding their product lines. Ms. Nooyi has said she wants to build the nutrition business to $30 billion from $10 billion by 2020.
To that end, PepsiCo announced earlier this month it would buy Russian dairy and juice-maker OAO Wimm-Bill-Dann in a deal valuing the company at $5.4 billion. "We see the emerging opportunity to 'snackify' beverages and 'drinkify' snacks as the next frontier in food and beverage convenience," Ms. Nooyi said. She cited examples such as kefir, a sour, yogurt-like drink that is popular in Russia and that some say aids in digestion. She said she expects to see dairy products mixed with juice, grains, fruits and nuts, all of which PepsiCo markets.
Mehmood Khan, a former Mayo Clinic endocrinologist who heads PepsiCo's nutrition group, said in an interview that it's outdated to think that snacks are dry and beverages are wet.
"Consumers don't wake up in the morning and say, 'I'm going to have a whole grain; I want a dairy product,'" Dr. Khan said. "They're looking for combinations of those things." Dr. Khan wouldn't specify what combinations might come next.
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PepsiCo Inc. is betting that consumers want to "snackify" drinks.
As part of its strategy to tap into the market for more nutritious convenience foods, the company is hoping people will pay a premium for a new pureed fruit product that it considers thick enough to be a snack rather than a beverage.
Tropolis, an 80-calorie fruit puree, which comes in brightly colored pouches, will be marketed to moms and kids. PepsiCo's Tropicana unit is rolling out apple, grape and cherry Tropolis pouches in test markets in the Midwest next month, at $2.49 to $3.49 for a four-pack.
It's not clear how profitable a niche product that is more complicated to produce and distribute than juice will be for the food and beverage giant, whose shares have been underperforming U.S. rivals Coca-Cola Co. and Dr Pepper Snapple Group Inc.
Coke and Dr Pepper have no significant food business and have made bigger bets on soda, which is by far the industry's most profitable product.
PepsiCo is best known for its namesake cola and Lay's potato chips, part of its "fun-for-you" (Doritos, Mountain Dew) and "better-for-you" (Baked Lay's, Diet Pepsi) portfolios, which make up $50 billion of the company's $60 billion in revenue.
But Chairman and Chief Executive Indra Nooyi is staking her reputation on building out the company's "good-for-you" portfolio, uniting the Tropicana, Quaker and Gatorade units under one umbrella and expanding their product lines. Ms. Nooyi has said she wants to build the nutrition business to $30 billion from $10 billion by 2020.
To that end, PepsiCo announced earlier this month it would buy Russian dairy and juice-maker OAO Wimm-Bill-Dann in a deal valuing the company at $5.4 billion. "We see the emerging opportunity to 'snackify' beverages and 'drinkify' snacks as the next frontier in food and beverage convenience," Ms. Nooyi said. She cited examples such as kefir, a sour, yogurt-like drink that is popular in Russia and that some say aids in digestion. She said she expects to see dairy products mixed with juice, grains, fruits and nuts, all of which PepsiCo markets.
Mehmood Khan, a former Mayo Clinic endocrinologist who heads PepsiCo's nutrition group, said in an interview that it's outdated to think that snacks are dry and beverages are wet.
"Consumers don't wake up in the morning and say, 'I'm going to have a whole grain; I want a dairy product,'" Dr. Khan said. "They're looking for combinations of those things." Dr. Khan wouldn't specify what combinations might come next.
READ MORE
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