View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 11, 2018

PepsiCo launches North America incubator

PepsiCo has set up another incubator, adding to its Europe-focused Nutrition Greenhouse with a unit focusing on North America dubbed The Hive.

PepsiCo has set up another incubator, adding to its Europe-focused Nutrition Greenhouse with a unit focusing on North America dubbed The Hive.

Free Report
img

Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

Indra Nooyi, the US food and drinks giant’s CEO, said yesterday (10 July) the incubator would look to grow the company’s own fledgling brands and work with other fledgling businesses.

Speaking to investors and analysts on a conference call to discuss PepsiCo’s second-quarter and first-half financial results, Nooyi, in response to a question on how the company sought to grow smaller brands, pointed to its launch last year of lower-calorie soft drink Lemon Lemon.

“If I look at products like Lemon Lemon from last year, it was rated the best new product launch of last year. It reached a pretty impressive level of sales yet, on the direct-store-delivery system, it didn’t do that well because it was cannibalising space from a core carbonated soft drinks category,” Nooyi explained.

“What we have created now is this new entity within PepsiCo called The Hive. We have taken it out of the core headquarters. It’s going to be an entrepreneurial group that’s going to take some of the best new products that we launched and that reached a certain size but that we never really allowed to thrive in the DSD system. We’re going to nurture and incubate it in whatever distribution system they think is the best for it and when it reaches a certain size, we can decide whether it should come into the DSD system or not.

“And this group is also going to look at other venturing brands they can bring in. We want to create an environment where we have a business within a business, a small entrepreneurial, sort of agile, group that’s thinking about the new-age consumer that loves discovery brands, while allowing the big brands to thrive in the overall mothership.”

PepsiCo’s European arm launched Nutrition Greenhouse last year, inviting eight companies across six countries to work with its executives for six months on how to “accelerate” their growth. In May, the Lay’s and Quaker owner announced Nutrition Greenhouse would return for a second year.

Nooyi added: “[The Hive] is not new to PepsiCo North America – we are doing something like this in Europe also. It’s a very local business, so we have to be careful not to make it global. It’s a very local business and we are going to play with these businesses because there is a consumer that is willing to pay for discovery brands and they can reach a decent level of growth and so we are going to go off and see how to make it happen. We are feeling excited about what we have just launched. Let’s see what happens in the next few months and years.”

A spokesperson added: “The PepsiCo Hive will serve to foster the next generation of rising, high-potential PepsiCo brands in an environment and structure apart from the company’s global headquarters. We’ll share additional details in the coming weeks.”

PepsiCo reported an 8% fall in first-half net profit to US$3.16bn, in part hit by a one-time expense of $777m. The company’s core net profit stood at $3.68bn, up from $3.51bn in the first half of 2017.

On a reported basis, PepsiCo’s first-half operating profit rose 1% to $4.84bn. Net revenue grew 3% to $28.65bn.

just-food interview from June 2018: “Agility puts you in the game” – PepsiCo on its European incubator Nutrition Greenhouse

Related Companies

Free Report
img

Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food