PepsiCo may increase advertising, marketing budget for its drink brands by as much as 50% - US$600M - to US$1.7B when it announces results of a yearlong business review on Feb. 9, analysts say

Nevin Barich

LOS ANGELES , January 27, 2012 (Industry Intelligence) – Bloomberg reported on Jan. 27 that according to analysts that it surveyed, PepsiCo Inc. might increase the advertising and marketing budget for its drink brands by as much as 50% — US$600 million — to $1.7 billion when it announces the results of a yearlong business review on Feb. 9.

The potential move comes as company investors have questioned whether PepsiCo CEO Indra Nooyi has focused too much on healthier products. PepsiCo’s shares have risen about 2% during Nooyi’s five-year tenure. Coca-Cola, meanwhile, has gained more than 50% during that time..

Upon taking over as CEO in October 2006, Nooyi pushed PepsiCo’s efforts toward healthier snacks and drinks, aiming to triple sales of these products to $30 billion by the end of decade. As a result Pepsi-Cola was advertised less frequently on television and was featured in fewer direct-product pitches.

The primary source of this article is Bloomberg, New York, New York, on Jan. 27, 2012.

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