PepsiCo Expands Noncarbonated Beverage Portfolio

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PepsiCo Expands Noncarbonated Beverage Portfolio

PURCHASE, N.Y. -- PepsiCo announced plans to significantly expand its leading noncarbonated portfolio in the U.S. with the introduction of two new products from the makers of Gatorade G2 -- Gatorade's first differentiated beverage since the original Thirst Quencher -- and a unique enhanced water from Propel called Propel Invigorating Water.

The company will also maximize the reach of G2 and the Propel line by leveraging its bottlers and providing distribution rights to the new family of Gatorade products in select channels, the company reported.

Pepsi bottlers currently deliver SoBe, Aquafina and other Pepsi-Cola products in all channels of trade. Beginning later this year, the expanded Gatorade arrangement will enable Pepsi bottlers to distribute G2 and the Propel line to small format customers, including convenience stores, gas stations and independent retail outlets.

"Extending our bottlers' distribution muscle into the Gatorade brand lineup while broadening our hydration portfolio is a great demonstration of our partnership in action," said Dawn Hudson, president and chief executive officer of Pepsi-Cola North America. "This is a winning proposition for everyone involved -- our consumers, our customers, our bottlers and PepsiCo."

Simultaneously, PepsiCo will restage its two enhanced waters: Aquafina Alive and SoBe Life Water.

"Today’s news marks the biggest development in PepsiCo's noncarb business since bringing Gatorade into the portfolio," said John Compton, CEO of PepsiCo North America. "These innovative new products give our unparalleled portfolio even greater strength, and build on PepsiCo's strong leadership positions in water, isotonics and tea. At the same time, together with our bottling partners, we are leveraging the best of our advantaged distribution systems to ensure consumers have handy access to these beverages and their unique benefits and varieties, wherever and whenever they work or play."

G2, a low calorie electrolyte beverage with just 25 calories per 8-ounce serving, will help keep athletes hydrated off the field so they are better prepared for competition on the field, the company reported. With the addition of G2, the broadened Gatorade line will better meet the hydration needs of athletes on a 24/7 basis. G2 will be the company's largest new product launch since Propel Fit Water.

Propel was introduced nationally in 2002 and Propel Invigorating Water is designed to not only hydrate and nourish, but also address a key consumer need by providing a boost for active people throughout the day, according to the company. The new vitamin-enhanced water is mildly caffeinated and lightly flavored, with only 20 calories per 8-ounce serving.

SoBe Life Water is being reformulated with sucrose (table sugar), antioxidants, vitamins and natural herbs. Each flavor will have a unique blend of ingredients offering a distinct benefit. SoBe Life Water's new formulations will have just 35 calories per serving -- 30 percent fewer than before. Lightly flavored Aquafina Alive offers consumers added, recognizable benefits without extra calories, PepsiCo reported. It is being reformulated with a new sweetener blend, additional nutrients and fewer calories.