Power Breakfast: Update on Coke and Pepsi mergers with bottlers, Ga. Power, Walmart, health law, Yahoo

Coke and Pepsi execs expressed measured satisfaction Monday about the mergers with their big North American bottlers, AJC staffer Jeremiah McWilliams reports.

PepsiCo bought its two largest North American bottlers in February, and Coca-Cola acquired the North American wing of Atlanta-based bottler Coca-Cola Enterprises in October. Both deals were worth billions of dollars and required executives to mesh massive organizations.

At a Beverage Digest conference in Manhattan, PepsiCo chief executive Indra Nooyi said the integration has been done fairly well, McWilliams reports. PepsiCo aims to achieve $400 million in pre-tax savings from the bottling acquisitions by 2012.

But “if I said the integration was going swimmingly well, I’d be lying,” Nooyi said Monday. “It’s a challenging integration.”

In a later presentation, Sandy Douglas, president of Coke North America, said the merged company is “off to a good start,” six weeks into Coke’s new ownership of a vast U.S. bottling network, McWilliams writes.

Also in the AJC:

In other media:

- Henry Unger, The Biz Beat

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3 comments Add your comment

TnGelding

December 14th, 2010
5:39 am

Best wishes to both. Hopefully they’ll show some compassion when they start laying off. Stock in either should be attractive. And both are offering healthier, more nutritious fare. Win, win.

shadow7071

December 14th, 2010
9:03 am

Here’s the challenge for Sandy Douglas and Coca-Cola…in Publix (in Atlanta) a two liter bottle of Coca-Cola is $1.79. A two liter bottle of Publix Cola is $.79. Now, Mr. Douglas would argue that Coke is a premium product and demands a premium price but in this economy where moms and dads are stretching their dollars it’s hard to justify a dollars worth of premium for their kids to slug down with pizza. Coke’s challenge is to bring that premium margin down to be a little closer to Publix (and other competitors) and thus be more attractive to moms and dads.

TnGelding

December 14th, 2010
3:27 pm

The difference in the price is not quality, it’s advertising.