Pepsi just announced that their new no-sugar sparkling water, Bubly, will be launching in Australia this month.
👉 Background: We all know PepsiCo as the $266 billion USD carbonated drinks company. But not only do they produce their OG Pepsi and Pepsi Max, but also Gatorade, Doritos, and Lipton tea.
👉 What happened: And now, Pepsi’s introducing another product to its stable. It just announced that their new no-sugar sparkling water, Bubly, will be launching in Australia this month.
👉 What else: Despite prices rising, consumers are still splurging on smaller indulgences like snack foods. In fact, Pepsi saw their net sales jumped 10.2% in the last quarter after they upped their prices by 16%. Thankfully for the big P, soft drinks are usually a price elastic product.
💡Price elasticity is the term used to describe how much a change in price impacts the demand of the product. The more price elastic a product is, the more likely its demand will change if the price changes.
💡The demand for Pepsi’s been strong even though they upped their prices almost 12%, which means Pepsi’s products are looking pretty price inelastic.
💡But, if Pepsi raises their prices too aggressively, they’re going to see demand drop. Consumers will eventually look towards other, cheaper drinks as alternatives to fill their cup.
Sign up for Flux and join 100,000 members of the Flux family
