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Owning Its Bottlers Will Make PepsiCo’s Shift To Healthier Beverages Easier

July 20, 2010: 09:26 AM EST
PepsiCo’s $7.8 billion acquisition of its two largest bottlers is proving to be an astute strategic move for a variety of reasons. The most important of these is the flexibility the bottling operations give the company as it implements a plan to market more nutritious food products. According to new CFO Hugh Johnston, the company’s long-term plan includes growing its nutrition product sales from $10 billion to $30 billion a year, while trimming fat, sugar and sodium content and maintaining flavor. Healthier ingredients are only part of the story, however: convenient packaging is important, too. An industry analyst notes that as American consumers move from soda to healthier drinks, “owning its bottlers should allow Pepsi to … react quickly to shifting consumer tastes."
Andrea Tse , "Best in Class: Pepsi's Plan for Global Domination", TheStreet, July 20, 2010, © TheStreet.com, Inc
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