Recent

% | $
Quotes you view appear here for quick access.

Pepsico, Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • azalphainvestor azalphainvestor Sep 5, 2002 9:24 AM Flag

    Something stinks here.

    Your pts are well made. And I do not claim exactititude. So let me add some rational and you are quite correct, this will apply only to soft drink division.

    The costs associated with ramping out a new product, here it is Pepsi Blue are much greater than average. When that product is a bust, the costs are not recovered and instead of a positive addition to the bottom line, they are a negative. Here instead of adding perhaps 5-7 percent to the bottom line in beverages, they will cause a lets say a 15 percent drag or increase in net costs.

    While you are quite right, this will result is smaller overall impact on the company bottom line, I still see the impact on the franchise brand, Pepsi, as being very damaging. But thank you for the excellent criticism.

 
PEP
96.26-0.94(-0.97%)May 22 4:00 PMEDT