Moves made in China and India are not expected to create an immediate impact on operating results, whereas in places like the U.S., a little investment can often lead to a quick and direct pop in sales.
"When you spend in China...you are not going to get the profitability impact in the next 12 or 24 months," said Nooyi, who was recently placed No. 6 on Forbes' list of the 100 most powerful women in the world. "It takes a longer time ... But it's must-investment market."
- Gatorade continues its resurgence, further helped by a shift in how it is distributed.
- The company is forming a global nutrition group, which will be based in Chicago. It will focus on developing new products that consist of healthier foods like fruits, vegetables and dairy. Pepsi expects the group to have $30 billion in revenues by 2020.
- The thesis that Europe and the U.S. is sluggish, while emerging markets are showing strength remains in place. In fact, Nooyi referred to the world outside of Europe/U.S. as ranging from "improving to buoyant."
- Johnston called the re-launch of Pepsi Max as "off to a great start" and that the product push would continue into the Super Bowl ad blitz.
See Complete Earnings Season Coverage Here.
CNBC Data Pages:
PepsiCo Competes With:
Dr. Pepper Snapple