This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The 5 Dumbest Things on Wall Street: March 18

Stocks in this article: PEP KO AFL CBS DTV T COF KV.A HPQ

5. Pepsi Fizzles Out

Who needs to waste all that money advertising in the Super Bowl? Well, looks like Pepsi should have.

On Thursday, Beverage Digest released annual market share data that showed that Pepsi (PEP - Get Report) is no longer playing second fiddle to Coke (KO - Get Report). Now it's third fiddle, behind Coke and Diet Coke. There was a time that Pepsi sought to seriously challenge Coke. Now, it seems the company is taking the fizz out of its own sales through its own brand of savvy marketing.

Pepsi has been losing ground to Coke for some time, but it seems to have helped the process along in 2010 by turning its back on advertising in the 2010 Super Bowl in favor of a $20 million charity competition, the Refresh Project. According to Advertising Age, it was the first time in 23 years that Pepsi decided the Super Bowl just wasn't for them.

The Refresh Project has gotten some great attention, like a New York Times article profiling how a shadowy figure from India known only as "Mr. Magic" was employed to stuff the ballot box in order to help charities win the Pepsi grants.

Credit Suisse analyst Carlos Laboy said in a research note that he was "worried about the morale implications for PepsiCo's beverage people of having the company's namesake brand and its top beverage brand dropped to a tertiary spot within its category at a time that a tangible sign of brand momentum for the core brands would help." That lack of momentum, said Laboy, has nothing to do with larger trends in the soft drink market, and everything to do with Pepsi. "There is no U.S. beverage category problem, just a Pepsi problem," he wrote.

Pepsi, of course, isn't worried. "I don't think that we'd view this as a blow," a Pepsi spokesperson told Ad Age. "We're looking at our total position. Consumers want a wide range of products for a wide range of occasions. And we're in a great position to satisfy them with that. Today we're fighting a totally different battle on a much bigger battlefield than just colas, though we are completely committed to carbonated soft drinks."

This may be just us, but if the battlefield is getting bigger, we'd rather have our biggest and most experienced unit leading the troops forward, not backward.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,340.97 -75.88 -0.44%
S&P 500 2,013.34 -7.91 -0.39%
NASDAQ 4,678.4870 -4.92 -0.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs