This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pepsi -- Get Your 'Aquafina' Out of My Tropicana!

Stocks in this article: PEP KO AAPL

NEW YORK ( TheStreet) -- Pepsi (PEP) Global Beverages Chief Massimo D'Amore -- the same man who greenlighted Tropicana's disastrous rebranding (as a result, driving Pepsi's customers to Coca-Cola's (KO) Simply Orange) -- is trumpeting a new strategy:

Water down the orange juice and charge for it.

" The customers themselves add water before drinking OJ," D'Amore said in an interview with Bloomberg. "So why not add the water ourselves and charge for it?"

Inspired by the success of Trop50, Pepsi seeks to expand juice blends that contain more water, less juice.

But even more mind-boggling than the above statement is this D'Amore gem: "We have lost perspective here on the primary reason we are in business, which is to make money."

D'Amore is right about one thing: Pepsi has indeed lost perspective if the company believes that "innovation" amounts to hoodwinking its customers. Steve Jobs would agree with me:

"My passion has been to build an enduring company where people were motivated to make great products," Jobs told his biographer, Walter Isaacson. " T he products, not the profits, were the motivation. John Sculley, a former president of Pepsi flipped these priorities to where the goal was to make money. It's a subtle difference, but it ends up meaning everything."

Marketing is a powerful tool, and if Pepsi were so inclined, the company could probably tout that its new juice blends are enhanced with the purity of Aquafina (itself, revealed to be nothing more than tap water). But on a long enough timeline, I'm confident that Pepsi's strategy will dilute the Tropicana brand the same as they are diluting their orange juice.

Today, Coca-Cola has an opportunity to steal market share from its competitor. The company's Simply Orange brand also uses orange juice blends, but these blends are 100% juice. So here's the ad campaign that I propose for Coca-Cola:

Image: An orange rests on a stool beside Raymond Joseph Teller (of Penn & Teller fame).

Text: We let our oranges do the talking -- Simply Orange, 100% juice.

-- Written by John DeFeo in New York


Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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