PepsiCo Launches First Prebiotic Cola Nationwide
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 hours ago
0mins
Should l Buy PEP?
Source: seekingalpha
- Product Innovation: PepsiCo has announced the nationwide launch of its first prebiotic cola, touted as the first in the traditional cola category, containing 30 calories, 5 grams of sugar, and 3 grams of prebiotic fiber per 12-ounce can, aimed at attracting health-conscious younger consumers.
- Market Positioning: The newly launched Prebiotic Cola comes in original and cherry vanilla flavors, available in single cans and 8-packs, intending to extend Pepsi's core brand into the modern beverage market, competing with emerging brands like Poppi and Olipop.
- Industry Trend: The prebiotic beverage subcategory has rapidly emerged since the late 2010s, with market data indicating that the digestive health soft drink market is projected to grow from approximately $197 million in 2020 to over $500 million by 2025, showcasing strong growth potential.
- Competitive Analysis: Coca-Cola has also entered this space with Simply Pop, a prebiotic soft drink positioned against Olipop and Poppi, offering 6 grams of prebiotic fiber per can, intensifying market competition and prompting PepsiCo to continuously innovate its product offerings.
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Analyst Views on PEP
Wall Street analysts forecast PEP stock price to fall
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 165.940
Low
144.00
Averages
161.90
High
172.00
Current: 165.940
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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PepsiCo Launches First Prebiotic Cola Nationwide
- Product Innovation: PepsiCo has announced the nationwide launch of its first prebiotic cola, touted as the first in the traditional cola category, containing 30 calories, 5 grams of sugar, and 3 grams of prebiotic fiber per 12-ounce can, aimed at attracting health-conscious younger consumers.
- Market Positioning: The newly launched Prebiotic Cola comes in original and cherry vanilla flavors, available in single cans and 8-packs, intending to extend Pepsi's core brand into the modern beverage market, competing with emerging brands like Poppi and Olipop.
- Industry Trend: The prebiotic beverage subcategory has rapidly emerged since the late 2010s, with market data indicating that the digestive health soft drink market is projected to grow from approximately $197 million in 2020 to over $500 million by 2025, showcasing strong growth potential.
- Competitive Analysis: Coca-Cola has also entered this space with Simply Pop, a prebiotic soft drink positioned against Olipop and Poppi, offering 6 grams of prebiotic fiber per can, intensifying market competition and prompting PepsiCo to continuously innovate its product offerings.
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- Profitability Improvement: PepsiCo achieved 2% sales growth and double-digit adjusted EPS growth in Q4, with projected earnings of $8.62 in 2026, indicating a payout ratio of 69%, sufficient to support future dividend payments.
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- Stock Performance: General Mills' stock fell on Tuesday following a revised sales outlook.
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- Product Innovation: PepsiCo has announced the nationwide launch of its first prebiotic cola, touted as the first in the traditional cola category, containing 30 calories, 5 grams of sugar, and 3 grams of prebiotic fiber per 12-ounce can, aimed at attracting health-conscious younger consumers.
- Market Positioning: The newly launched Prebiotic Cola comes in original and cherry vanilla flavors, available in single cans and 8-packs, intending to extend Pepsi's core brand into the modern beverage market, competing with emerging brands like Poppi and Olipop.
- Industry Trend: The prebiotic beverage subcategory has rapidly emerged since the late 2010s, with market data indicating that the digestive health soft drink market is projected to grow from approximately $197 million in 2020 to over $500 million by 2025, showcasing strong growth potential.
- Competitive Analysis: Coca-Cola has also entered this space with Simply Pop, a prebiotic soft drink positioned against Olipop and Poppi, offering 6 grams of prebiotic fiber per can, intensifying market competition and prompting PepsiCo to continuously innovate its product offerings.
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