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· Posted on
February 21, 2024

PepsiCo pops the Bubly with its new, fizzy foray to quench the thirst of Aussies

Pepsi just announced that their new no-sugar sparkling water, Bubly, will be launching in Australia this month.

What's the key learning?

  • Despite prices rising, consumers are still splurging on smaller indulgences like snack foods.
  • 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.

👉 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.

What's the key learning?

💡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.

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