The Wall Street Journal reports this morning on how PepsiCo is running into a roadblock as it tries to shift its portfolio to healthier foods and drinks.
Consumers.
"Here is a company pulled in two different directions," the Journal writes. "Chief executive Indra Nooyi has vowed to turn the maker of Fritos, Cheetos, Lay’s and Pepsi into a health juggernaut. But while consumers say they want to eat healthy, often what they really want is chips.
"Despite an expanding stable of 'good for you' brands like Quaker oatmeal, Naked juice and Sabra hummus, PepsiCo Inc. fell behind the goal it made in 2010 to triple revenue from nutritious products to $30 billion this decade. Its new 2025 goal, announced in October, is that sales growth of its nutritious products 'will outpace' the rest of its portfolio."
PepsiCo is not alone. The Journal writes, "Nestlé SA, deep into a big push into healthier food, has warned it will miss its revenue growth target for a fourth straight year. A big reason behind recent woes at General Mills Inc. is weak Yoplait yogurt sales. Campbell Soup Co. blamed a recent sales downturn on execution problems at its fresh-food division after a poor carrot harvest and protein drinks recall."
Consumers.
"Here is a company pulled in two different directions," the Journal writes. "Chief executive Indra Nooyi has vowed to turn the maker of Fritos, Cheetos, Lay’s and Pepsi into a health juggernaut. But while consumers say they want to eat healthy, often what they really want is chips.
"Despite an expanding stable of 'good for you' brands like Quaker oatmeal, Naked juice and Sabra hummus, PepsiCo Inc. fell behind the goal it made in 2010 to triple revenue from nutritious products to $30 billion this decade. Its new 2025 goal, announced in October, is that sales growth of its nutritious products 'will outpace' the rest of its portfolio."
PepsiCo is not alone. The Journal writes, "Nestlé SA, deep into a big push into healthier food, has warned it will miss its revenue growth target for a fourth straight year. A big reason behind recent woes at General Mills Inc. is weak Yoplait yogurt sales. Campbell Soup Co. blamed a recent sales downturn on execution problems at its fresh-food division after a poor carrot harvest and protein drinks recall."
- KC's View:
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I have to believe that moving to healthier food is the more sustainable strategy, even if it takes longer and costs more. Showing leadership often is not a painless process.
