PepsiCo, Inc. (NYSE:PEP) has plans for their breakfast beverage under their Mountain Dew brand. This is the Company’s “Kickstart” product offering. This 16 ounce product (80 calories) is a caffeinated sparkling juice drink.
Mr. Greg Lyons , VP of Marketing for Mountain Dew, said, “Our consumers told us they are looking for an alternative to traditional morning beverages…”
Here’s another major beverage player catering to the desires of their customers. They’re being innovative as per the demands of the marketplace. Who would have thought of PepsiCo, Inc. (NYSE:PEP) as a morning beverage purveyor? Investors should research companies who are not afraid to be creative as concerns additions to their storied product families.
PepsiCo’s Organic Revenue (sales streams, which are a direct result of an entity’s existing operations) increased 5 percent in the fourth quarter and full year 2012. PepsiCo Americas Beverages market share movement in the United States advanced chronologically in the fourth quarter. The Company stated that this was because of “disciplined execution and significant investments in advertising and marketing.”
Of importance to potential investors is that the Company is targeting mid-single-digit organic revenue growth and 7 percent core constant currency Earnings Per Share (EPS) growth for 2013. For income loving investors, PepsiCo Company announced a quarterly dividend increase of 5.6%, which will begin this coming June.
The Coca-Cola Company (NYSE:KO)’s “Simply Orange Juice Co.” brand is also pursuing growth. This brand of juice blends has three new flavor additions to their family. Again, here’s a traditional beverage company constantly innovating based on consumer desires.
Allison Higbie, Group Director of Marketing for Simply Beverages, stated recently, “To meet the demand for new flavors, we are offering refreshing new twists on classic favorites.”
The Coca-Cola Company (NYSE:KO), for the 2012 fourth quarter and full year increased worldwide volume and value share in nonalcoholic ready-to-drink (NARTD) beverages. This category includes their Simply Orange and Minute Maid Juices To Go. Overall, the Company experienced volume and value share growth across almost every beverage category. The Coca-Cola Company (NYSE:KO) reported global volume growth of 4% for the full year (3% for 4Q).
In addition, it’s not all “soups” for The Campbell Soup Company (NYSE:CPB); they’ve juiced up their product portfolio with their Bolthouse Farms offering. This is a newly acquired business for Campbell’s. Bolthouse Farms product line-up consists of beverages, carrot products and dressings. Juices include carrot, pomegranate, acai, mango coconut and others.
Denise Morrison, President & CEO of The Campbell Soup Company (NYSE:CPB) stated earlier this year that, “Our newly acquired Bolthouse Farms business delivered solid results in the fresh carrots, beverages, and salad dressings category, driven by innovation and increased distribution. The Bolthouse Farms integration is also progressing well.”
This is an important step forward for Campbell’s. For the second quarter of fiscal 2013, their sales grew 10 percent to $2.333 billion. The acquisition of Bolthouse Farms added 9 percent to this sales increase.
What can investors’ takeaway from all of this? Certainly, it’s a juicy time in the marketplace for these major players on the stock market. They recognize the value in offering healthier drink options to consumers focusing on healthier lifestyles. As an investor, research solid companies in sync with what the marketplace is demanding of them in terms of new products that address health concerns.
Michael Ugulini has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, PepsiCo, and Starbucks. The Motley Fool owns shares of PepsiCo and Starbucks.
