Food Business News - February 24, 2015 - (Page 26)

Innovation paying for PepsiCo New products contribute to organic revenue growth in fiscal 2014 PURCHASE, N.Y. - Product launches helped PepsiCo, Inc. meet or exceed its financial targets in fiscal 2014. The company delivered organic revenue growth of 4% for the full year and 5% for the quarter, but market challenges and currency headwinds pressured profit. For the year ended Dec. 27, 2014, net income attributable to PepsiCo was $6,513 million, equal to $4.27 per share on the common stock, down 3% from $6,740 million, or $4.32 per share, during the prior year. Net revenue for the year was flat at $66,683 million, which compared with $66,415 million during fiscal 2013. The company's core earnings, adjusted for a range of special charges, were $4.63, up 5% from $4.37. On a constant currency basis, adjusted earnings were up 9%. "We've built a robust and sustainable innovation pipeline, perhaps the strongest in our history," said Indra Nooyi, chairman and chief executive officer, during a Feb. 11 earnings call with financial analysts. "Over the past two years, innovation as a percentage of total net 26 FOODBUSINESS NEWS ® Indra Nooyi revenue has climbed by 150 basis points and now stands at 9%." To meet growing demand for nutritious products, PepsiCo launched Gatorade whey protein bars and a kale variety of Naked Juice beverages during the year. "And as a testament to the durability of our innovations, a number of our recent product introductions, like Tostitos Cantina, Mountain Dew Kickstart and Pure Leaf, generated double-digit estimated annual retail sales growth in 2014 after achieving over $100 million in their launch year." Product development also has helped the challenged Quaker Foods North America segment maintain a foothold in the marketplace. The company gained value share for the year in the hot cereal, ready-to-eat cereal and snack bar categories, where the brand is launching items with added protein, reduced sugar and steel-cut oats. PepsiCo's social and digital marketing efforts also are making a splash. The annual Lay's potato chip flavor submission contest generated more than 14 million submissions, and the company's recent Doritos Super Bowl campaign received nearly 5,000 consumer-submitted videos. "Programs like these drive phenomenal consumer engagement, are highly complementary to our broader marketing efforts and are extremely financially efficient," Ms. Nooyi said. "Our investments are February 24, 2015

Table of Contents for the Digital Edition of Food Business News - February 24, 2015

Food Business News - February 24, 2015
General Mills accepts the C.P.G. challenge
Gluten-free front and center
Mexican trade rift looms over Sweetener Colloquium
Table of Contents
Web Contents
Editorial - Subscription models may offer unique marketing opportunities
Confectionery companies switching to simpler ingredients
McCormick to acquire Italian spices and seasonings company
Mondelez has big plans to grow small platforms
WhiteWave Foods ‘busting at the seams'
More c-suite change at Kraft Foods
Keurig in transition
Mondelez acquires Enjoy Life Foods
Innovation paying for PepsiCo
TreeHouse Foods trims expectations
Kraft cleans up Capri Sun
Washington - Federal bills seek to mandate G.M.O. food labeling
Company Profile - Dr Pepper Snapple Group seizing opportunities
Capitalizing on R.C.I.
Ingredient Innovations - Clean label starches get tougher
Are clean labels and G.M.O. ingredients compatible?
More clean label ingredient opportunities
Dairy Business News - Yogurt, the next generation
New Food Products
Ingredient Market Trends - Belt-tightening time for U.S. agriculture in 2015-16
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 24, 2015