PepsiCo plans a lower-calorie Gatorade


Here's a good idea: PepsiCo (NYSE: PEP) will be introducing a new, lower-calorie, lower-sugar version of Gatorade for people who aren't breaking a sweat while they drink: office athletes. The announcement comes as the growth of Gatorade sales has been slowing, perhaps as a result of the rising popularity of Vitamin Water, owned by rival Coca Cola (NYSE: KO). .

I wonder what would happen if Gatorade put vitamins in this new Gatorade in an effort to take on Vitamin Water. The strength of the Gatorade brand might give it a shot. While Vitamin Water is the leader in its market, I think it may be too new to have an unassailable competitive advantage.

If Pepsi can put together something to compete with it, Coke's $4 billion acquisition might not look so smart in retrospect.


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