Gatorade to Go DSD in C-stores

PURCHASE, N.Y. -- As of Jan. 1, 2011, PepsiCo will change distribution for its Gatorade products in the convenience and select other channels from a warehouse‐delivered go‐to‐market system to direct-store delivery (DSD) through both company‐owned and independent bottlers in the United States and Canada.

"This is a clear example of using PepsiCo's broad set of go‐to‐market systems to best serve our customers. We remain dedicated to the existing warehouse distribution system for some of our beverage products, but the change to direct store delivery makes sense for Gatorade as we redefine the sports nutrition category through the G Series," Massimo d'Amore, CEO of PepsiCo Beverages Americas, said in a statement. "As a company, we are committed to bringing a wider variety of products to market more quickly and efficiently than ever before."

The move is the first in an effort to optimize delivery systems resulting from the bottling acquisitions earlier this year. The expected synergies from the change are included in the company's target of $400 million in pre‐tax annualized savings from the bottling acquisitions once fully implemented by 2012.

"The distribution of Gatorade in key trade channels of Convenience, UDS and Dollar is well suited to the direct-store delivery model due to its high velocity, so the switch will result in better store‐level customer service," Eric Foss, CEO of Pepsi Beverages Co., said in the statement. "By achieving greater speed, simplicity and flexibility, we will be able to better serve the current and future needs of both our retail customers and consumers in the marketplace."

Other warehouse-delivered PepsiCo brands in this channel, including Tropicana, Quaker and Naked Juice, will not be affected by the change, according to the company.