Pepsi to Rotate Packaging for Flagship Brand

Part of Innovation Push Under 'Feel the Pepsi' Theme

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This article has been amended since its original publication; see correction below.

CHICAGO ( -- Don't get too used to Pepsi's package graphics. They're going to change -- every few weeks.
Pepsi's new strategy will be to constantly change the packaging design for its flagship cola.
Pepsi's new strategy will be to constantly change the packaging design for its flagship cola.

In a conference call with analysts today, new Pepsi-Cola executives said the beverage giant's packaging look for its flagship cola will rotate every few weeks. It's part of a more aggressive marketing push to communicate innovation overall at the company, including new sweeteners and juices added to carbonated soft drinks to make them "better for you" brands.

'Healthier' bubbles
The marketer also confirmed the report published two weeks ago in Advertising Age that the Pepsi-Cola brand will get a new advertising campaign next year under the "Feel the Pepsi" theme.

Noting that price discounting "won't reverse sales trends," Pepsi-Cola North America CEO Dawn Hudson said: "We want to give consumers the bubbles they love in a healthier way."

Among planned products are Tava, a carbonated, fortified fruit drink that contains vitamins and chromium, which is a mineral said to boost metabolism and weight loss. PepsiCo also plans to roll out Gatorade AM, a version of the isotonic drink aimed at morning exercisers who want milder flavors. It will also introduce Propel-branded flavor packets to add to bottled water.

For Tropicana, which has been hampered by orange costs, the company will turn to new package design and higher-margin products, including Tropicana Pure, a line of 100% juice drinks to be sold in supermarket produce aisles. Its Tropicana Essentials line will add the omega-3 fatty acids associated with heart health; Pepsi said Tropicana will be the first national orange-juice brand to have it.

International's role
About 45% of PepsiCo products are marketed under the Smart Spot program that identifies snacks and beverages in the better-for-you and good-for-you standards, the company said. Executives will continue work in developing health and wellness products, by using less sodium or switching to more-healthful oils, including Flat Earth vegetable and fruit chips.

International will play a major role in the growth plans as well. PepsiCo International provides 35% of the company's revenue and 24% of profit.

Just six markets contribute 75% of PepsiCo's international sales, according to Mike White, chief executive of PepsiCo International, providing a significant growth opportunity. He said the company can add $500 million in five years by building its nut, popcorn and other savory snacks.

PepsiCo CEO Indra Nooyi, however, said that the company's strategy is largely status quo. "I don't see any need presently to change a strategy that's been working," she said, noting her 23-day tenure.

Correction: The article originally said that international provided 81% of PepsiCo's profit. International provides 24% of profit.
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