Pepsi's earnings weren't shocking... Revenues inched up 2.2% and soda sales hardly grew. Then something happened in the press conference after the report's release — the CEO couldn't stop talking about how much he's into Pepsi's new sparkling water brand, Bubly. Really into it.
It's all about the bubbles, baby... Over the past year, Bubly has more than doubled its share of the sparkling water market, from 2.3% last year to 6.5% now. Here's how Pepsi's drinking into LaCroix and Perrier's market:
This is about Millennial moms... Pepsi's CEO described them as Bubly's true target. The next generation of moms is more educated, more employed, and expected to spend more money than the last. Pepsi's ditching plastic bottles and putting Bubly in more environmentally-friendly cans, hoping Mom will buy it for herself and the kids. That's how you raise the next next generation of customers.