Daily Newsletter

08 September 2023

Daily Newsletter

08 September 2023

PepsiCo freshens up Gatorade range with water

The US giant says the “premium”, alkaline water fits its efforts to provide “all-day nutrition” through the Gatorade brand.

Dean Best

PepsiCo has added another option to its Gatorade range of beverages – water.

The US giant said the “premium”, alkaline water fits its efforts to provide “all-day nutrition” through the Gatorade brand.

Gatorade Water – which PepsiCo described as “electrolyte-infused” – will go on sale in the US in the first quarter of next year.

The drinks are the latest addition to the Gatorade portfolio. In the last year, PepsiCo has taken the brand into energy drinks with the launch of Fast Twitch.

“With entrances into new categories including water and energy, alongside a string of recent low- and no-sugar hits like Gatorlyte and Gatorade Fit in the last two years, the Gatorade portfolio is the most complete offering on the market today across energy, hydration, protein and all-day nutrition,” the company said today (7 September).

In July, PepsiCo CEO Ramon Laguarta expressed confidence in the prospects for Gatorade, seen as an important brand for the group’s North America drinks arm, which saw volumes dip again in the second quarter.

Laguarta said the company “feels good” about Gatorade, a brand he insisted was seeing “all execution metrics improving” but which analysts suggested was a factor in the quarterly decline in volumes from the PepsiCo Beverages North America division.

The PepsiCo chief said the changes to Gatorade’s distribution model would benefit the brand, describing the decision as “a structural move that will give us better execution and capacity to respond to weather changes and opportunity in the marketplace going forward”.

Laguarta also argued PepsiCo’s moves to expand its Gatorade product range were paying off.

PepsiCo would not comment today on the recommended pricing or listings for Gatorade Water. It said the products would be “competitively priced”. The range includes a one-litre option, a 700ml sport cap and a 700ml six-pack.

Flavored alcoholic beverages forecasted to register the fastest growth within the alcoholic beverages packaging industry

The global alcoholic beverages packaging industry has grown to 445.4 billion units in 2022, with volumes forecasted to grow at a CAGR of ~2% by 2027. The Asia-Pacific represented the largest region in 2022, followed by the Americas. Glass was the most used pack material globally, followed by rigid metal and rigid plastics. Volume-wise, the industry was led by the beer & cider sector in 2022, while the flavored alcoholic beverages sector is forecast to register the fastest growth at a CAGR of 6.1% during 2022–27, followed by spirits and wine.

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