- Pepsi/ Getty Images
Pepsi is shifting away from its roots.
CEO Indra Nooyi told investors she thought focusing solely on carbonated soft drinks was “a thing of the past,” according to the Associated Press.
Soda sales declined 1% in the most recent quarter, while sales of diet soda fell 6.5%, the Associated Press reports. Coca-Cola’s soda sales are also declining.
Nooyi said she expected the brand’s snack and bottled tea businesses to drive sales in the future.
Americans are increasingly seeking teas and energy drinks over soda, as evidenced by Coca-Cola’s $2.5 billion stake in Monster Energy.
This chart by the market-research firm IBISWorld predicts declining soda consumption in the US through 2018.
As soda consumption continues to decline, companies will have to get more creative to make profits.
Diet soda is in trouble as well.
Consumers have become increasingly wary of aspartame, an artificial sweetener that has been plagued with an unhealthy reputation.
Aspartame is often sold under the brand names NutraSweet and Equal.
PepsiCo reformulated its Diet Pepsi beverage and has introduced a beverage sweetened with the natural sweetener Stevia called Pepsi True.
The company says the new product “will continue to provide consumerswith the crisp, refreshing zero-calorie cola taste they expect from Pepsi.”
Aspartame is generally known for having an artificial taste, while sucralose, which is widely known as Splenda, is supposed to taste more like real sugar.
Many in the industry expect that brands like Coke and Pepsi will continue moving away from traditional soda as Americans grow to prefer other beverages.