Quick Hits: Pepsi - Now with Yogurt!
By Mike Schuster Nov 06, 2008 10:05 am
Brief scrutiny of today's headlines.
PepsiCo (PEP) never seems to be at a loss for harebrained ideas. Having survived Pepsi Ice Cucumber, Crystal Pepsi and Pepsi Red -- which is Pepsi with a spicy ginger twist -- no one's surprised when the soft-drink giant introduces its latest outrageous new flavor for a limited market.
But maybe it's gone a tad too far: The company just launched a new flavor in Japan. It's called Pepsi White.
Pepsi White is described as having a "cola-yogurt" taste; I assume, therefore, that it's intended as an after-dinner dessert cola.
If the thought of a yogurt-flavored cola isn't enough to disgust you, maybe you ought to take a gander at what it looks like:

Marketed in a clear bottle to show off the color, which is meant to evoke thoughts of snow and Christmas, the carbonated appearance of Pepsi White makes it look like an Alka-Seltzer tablet was dropped into watered-down milk: A fizzy, cloudy-white horror.
Pop culture comedians like to namedrop Crystal Pepsi as the '90s version of New Coke - e.g. "Who are the ad wizards that came up with this one?"
But the short-lived soda had one thing going for it: There actually are soft drinks that are fizzy and clear: 7Up and Sprite. Though possibly part of the reason why Crystal Pepsi failed was it was unfortunately tied to that subconscious disgust of drinking something you thought was something else.
Pepsi White doesn't have this problem, because there are no other carbonated white drinks on store shelves. However, I can't see how anyone could cope with the image of watery sour-cream runoff while taking a sip.
Just... ugh, Pepsi. Why?
Decisions like these are why the company is in such desperate need of a business makeover.
But maybe it's gone a tad too far: The company just launched a new flavor in Japan. It's called Pepsi White.
Pepsi White is described as having a "cola-yogurt" taste; I assume, therefore, that it's intended as an after-dinner dessert cola.
If the thought of a yogurt-flavored cola isn't enough to disgust you, maybe you ought to take a gander at what it looks like:

Marketed in a clear bottle to show off the color, which is meant to evoke thoughts of snow and Christmas, the carbonated appearance of Pepsi White makes it look like an Alka-Seltzer tablet was dropped into watered-down milk: A fizzy, cloudy-white horror.
Pop culture comedians like to namedrop Crystal Pepsi as the '90s version of New Coke - e.g. "Who are the ad wizards that came up with this one?"
But the short-lived soda had one thing going for it: There actually are soft drinks that are fizzy and clear: 7Up and Sprite. Though possibly part of the reason why Crystal Pepsi failed was it was unfortunately tied to that subconscious disgust of drinking something you thought was something else.
Pepsi White doesn't have this problem, because there are no other carbonated white drinks on store shelves. However, I can't see how anyone could cope with the image of watery sour-cream runoff while taking a sip.
Just... ugh, Pepsi. Why?
Decisions like these are why the company is in such desperate need of a business makeover.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
(1)
Reply
2008-11-06 10:38:43
Pepsi White
Hi Mike,
Pepsi White is no more no less than a me-too product of Calpis Soda (from the namesake Japanese company).
It may sound like a strange combination to you (a carbonated very watery yogurt drink...), but it has been a popular drink in Japan for decades.
Sales actually started in 1919.
Given how strong the Calpis brand is in Japan, Pepsi White will probably not be a success.
Probably, the idea was originated by the Japanese Pepsico franchisee (Suntory, one of the largest beverage companies in Japan)
I am just wondering why Pepsico agrees to waste money and resources on plain me-too launches in some markets.
Francois
Ps: I own a few Pepsico shares
Pepsi White is no more no less than a me-too product of Calpis Soda (from the namesake Japanese company).
It may sound like a strange combination to you (a carbonated very watery yogurt drink...), but it has been a popular drink in Japan for decades.
Sales actually started in 1919.
Given how strong the Calpis brand is in Japan, Pepsi White will probably not be a success.
Probably, the idea was originated by the Japanese Pepsico franchisee (Suntory, one of the largest beverage companies in Japan)
I am just wondering why Pepsico agrees to waste money and resources on plain me-too launches in some markets.
Francois
Ps: I own a few Pepsico shares
Get real-time options trading ideas from Steve Smith, veteran options trader and newsletter author, plus let him show you the way to cut risk and boost your returns through the strategic use of options. Click here for a free 14 day trial to OptionSmith by Steve Smith.
Copyright 2009 Minyanville Media, Inc. All Rights Reserved


















