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Can PepsiCo Transform Itself From Purveyor Of Salt, Fat And Sugar?

March 25, 2010: 03:38 AM EST
PepsiCo faces a three-front war: enhancing company financial performance, staying a step ahead of government agencies determined to “regulate” an end to the obesity epidemic, and holding onto the brand loyalty of customers who don’t care a fig about sugar, salt or fat content. To fend off the regulators, Pepsi has announced several long-term deadlines for cutting unhealthy ingredients. On the financial front, investors seem willing to look past the company’s lackluster 2009 performance, now that it has hiked the dividend, implemented a share buyback, taken steps toward cross-marketing snacks and beverages, and launched strategic marketing and supply partnerships. Nevertheless, it remains to be seen whether consumer, government and other skeptics will be able to swallow a marketing strategy that dwells somewhat equally on healthy and unhealthy products.
"Pepsi gets a makeover", The Economist print edition , March 25, 2010, © The Economist Newspaper Limited
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