And in business news, the weakest excuse for not hitting your numbers this quarter comes from…..Pepsi. That’s right Ladies and Gentlemen, the 100 year old beverage behemoth with sales of $39B in 2007, had their lunch handed to them by a glass of water. Before I explain, let me say that in all of history, has nothing been more mundane, more generic, more commoditized than the ordinary glass of water.
So let’s build a business around it! I for one never understood the bottled water craze. I always wondered why people would get in their car, drive to a store and buy a plastic container full of something they can get out of their taps. Now, that doesn’t mean on any given Saturday I couldn’t be humping a 24 pack of Deer Park into the house from Sam’s, because my friends, my Wife drinks the Kool-Aid water.
But back to Pepsi
Pepsi has 45 beverage products in the Pepsi-Cola brands lineup and only 5 of them are water; Aquafina, Aquafina Alive, Aquafina Flavor Splash, Aquafina Sparkling and Propel. This is just the beverage side of the house; this doesn’t include Frito-Lay or Quaker or any other food revenue.
The point is, there is a TON of business out there with Pepsi’s name on it all over the world and they are blaming missed earnings estimates on the lack of sales of bottled water in the U.S., which they have been using as an excuse for a few years now.
The numbers
Pepsi reported net income of $1.58 billion for the third quarter, compared with $1.74 billion a year earlier. Excluding losses related to commodity hedges, the company’s earnings were $1.06 per share. Analysts were expecting $1.08 per share.
You had to know it was a matter of time right? I mean, even Starbucks is laughing at Pepsi, and Starbucks makes the second most commoditized product in the world! Oh, and by the way Pepsi, just in case you are starting to believe your own excuses, Coke reported a better-than-expected quarterly profit on Wednesday as strong international demand offset falling volume at home. The company said net income for the third quarter ended on Sept. 26 rose to $1.89 billion or 81 cents a share, from $1.65 billion, or 71 cents a share, a year earlier. And they don’t have half the junk food to sell that Pepsi does. Get your house in order Ms. Nooyi.
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