Tag Archives: Pepsi

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Coca-Cola HBC says Russia a ‘risky’ developing economy

Coca-Cola HBC says Russia a ‘risky’ developing economy

Published time: February 27, 2013 18:25

TagsEconomy, Investment, RussiaThe world’s second largest Coca Cola bottler Swiss-based Coca-Cola HBC, in a report to investors, says its revenues are endangered by “inconsistent state politics in developing countries like Russia, Nigeria and Romania.” In the company’s opinion, legal ambiguity typical for Russia and
Nigeria can have a negative influence on its business in these
regions.According to Coca-Cola HBC, Russia has a large and complex
structure of government and its national, regional and municipal
authorities may take contradicting decisions and propose a variety
of requirements, which may increase the company’s costs.In addition, Russia and Nigeria historically have very high
levels of corruption, and while the Coca-Cola brand is guided by US
law forbidding corruption abroad, its competition with other market
participants can become unequal.Coca-Cola HBC argued the uncertainty may affect company sales
both directly and indirectly, as the population, dubious about the
future, will be spending less on non-essential goods like
beverages.Coca-Cola Hellenic Bottling Company S.A. is the world’s
second-largest Coca-Cola bottler responsible for the markets of
Eastern Europe, CIS, Ireland and Nigeria.The risks of developing a business in Russia were highlighted by
Coca-Cola’s main competitor, PepsiCo. The corporation’s annual
report talked about the unstable political situation, civil unrest
and other risks in countries like Russia having a possible negative
impact on PepsiCo’s business and financial results.According to analyst Darya Pichugina from Moscow based
Investcafe, a country’s investment climate is individual for each
particular company, and if Coca-Cola HBC says Russia and Nigeria
are unfriendly to it, they must have a point. “These negative
forecasts can be due to a country’s individual legislation
regarding food companies like Coca-Cola. For example, in Russia a
tax on sparkling beverages was proposed not long ago, a fact that
can’t be seen positively from Coca-Cola HBC’s point of
view.”“As for the risk assessment, the risk of investing in Russia
does exist, but it has a positive side too. Our country is very
attractive to foreign investment as it has a lot of different
industries still developing, like the food industry or agriculture,
and a company can gain a lot by investing in these. So, if it is
ready for risks, it invests in the Russian economy, if not, it
turns to safer places like Germany,” Darya Pichugina told
RT.“Unfortunately, Russia traditionally has quite a negative
image for investors that needs to be changed, and that can’t happen
in a wink of an eye. Russia and Nigeria have been compared a lot,
but if we look at the question more profoundly, Russia’s corruption
is much lower and it also has a much higher level of education and
scientific development which can be attractive to investors,”
the economist pointed out.Russia has recently moved up in the ranking for economic freedom
compiled annually by the World Bank where it occupies 112th place.
In this list economies are ranked on their ease of doing business,
from 1 to 185.Share on Tumblr Read More

Beyonce, Vanessa Williams, Alicia Keys And More: The Week’s Best Style Moments (PHOTOS)

A combination of Beyonce, Alicia Keys, Vanessa Williams and the NAACP Image Awards made for a super stylish week!

Beyonce silenced her critics by singing the National Anthem live this week at the Pepsi Super Bowl XLVII Halftime Show Press Conference and she looked fab doing it, of course. The “Love On Top” singer stunned in a teeny tiny, white leather Olcay Gulsen dress and Jimmy Choo pumps. Bey is on fire!

And speaking of girls on fire–Alicia Keys turned heads in a sexy Michael Kors cutout gown at the NRJ Music Awards 2013 in France. The edgy ensemble looks great on the Grammy Award-winning singer and we’re loving that hair.

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2013 Super Bowl ad preview

The smell of chicken wings and seven-layer dip fills the air. The carbonated whisper of beer cans opening in unison tickles your ears. Somewhere, Jackie Harbaugh is wondering which of her sons she will love more at the end of the night. It is Super Bowl Sunday, and the game is about to begin.

Just kidding! It is only Thursday, and all that we have to satiate our football hunger is a humble grouping of Super Bowl ad previews.

So join me in watching them, and pretending — if just for a moment — that it’s the big day and the working week is just a distant memory.

The Good (relatively speaking)

Hyundai uses Wes Anderson-esque stylized detachment to sell their 2013 Sonata Turbo. Who’s buying?

Pepsi made Super Bowl history with a sexy Cindy Crawford in cut offs. This ad will not make Super Bowl history, but it gets points for an extended take of a teenager dumping a full gallon of milk on his head and casting a mustachioed Will Forte lookalike as a preternaturally chill, soda-loving dad.

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Chemicals banned in Europe still make their way into US foods

Have you ever tasted a soft drink so good you thought it should be illegal? In some parts of the world, ingredients used in beverages available across the United States are outlawed — but not because they’re dangerously delicious.Drinks including Mountain Dew, Gatorade, Powerade and Squirt are all commonly available at restaurants and convenience stores across the US. If you’re overseas and thirsty for one of many products made by PepsiCo, Cocoa-Cola or the Dr. Pepper Snapple Group, you might get something entirely different. Brominated vegetable oil, an ingredient used by those manufacturers in an array of beverages, is banned in locales like Europe and Japan. The New York Times reports that around 10 percent of drinks sold in the US contain brominated vegetable oil, or BVO, but elsewhere things are a bit different. Beverages overseas are stripped of the chemical, used usually to help distribute flavor, with foreign health officials citing some serious medical concerns as the reason for the ban.Sarah Kavanagh, a teenager from Hattiesburg, Mississippi, only became aware of BVOs recently while examining a bottle of Gatorade. A quick Web search had her rethinking what she drinks, though.“I knew it probably wasn’t from an animal because it had vegetable in the name, but I still wanted to know what it was, so I Googled it,” she tells the Times. “A page popped up with a long list of possible side effects, including neurological disorders and altered thyroid hormones. I didn’t expect that.”Most Americans are in the same boat, but the substance is still completely legal in the US.“BVO is banned other places in the world, so these companies already have a replacement for it,” Kavanagh tells the Times. “I don’t see why they don’t just make the switch.” According to the paper, companies say the switch woul
bf3
d simply cost all too much.After becoming aware of the compound, she started a campaign on Change.org to help raise awareness of BVO. Since that petition was launched in November, she has collected over 205,000 signatures from others urging a federal ban on BVOs.”I was shocked that they’d put their consumers at risk like that and that the FDA would allow something like that to be put in products,” she tells the Chicago Tribune.The US Food and Drug Administration maintains that all foods sold legally in the US are safe for human consumption. In a statement to the Tribune, in fact, the FDA says the US food supply is “the safest in the world” and that the agency’s foremost promise is to “protect public health by ensuring that foods are safe and properly labeled.” Even if American labels advertise the use of BVOs, though, that doesn’t do much to dismiss the concerns that have caused bans of the chemical internationally. Brominated vegetable oil isn’t addictive and it hasn’t been proven to be fatal just yet. According to some studies, rodents subjected to the substance developed reproductive and behavioral problems.”The FDA has been extremely lenient in evaluating food additives and it’s almost impossible to get the FDA to ban an additive once they have approved it,” Michael Jacobson of the Center for Science in the Public Interest adds to the Tribune. “It’s just not as public health oriented as it should be.”“I just don’t think they’re doing enough to protect the public’s health with regard to food additives,” he says.That one additive, BVO, certainly doesn’t seem safe to Kavanagh. On her Change.org petition, she notes that one of the elements of BVO, bromine, is used most often to make products flame retardant. It’s also been included in gasoline additives and pesticides, and was originally used as a general sedative until only a few decades ago. Scientific Americans says BVO “links to impaired neurological development, reduced fertility, early onset of puberty and altered thyroid hormones.”“I’m not a scientist, but if there are lots of suspicious things about putting a flame retardant chemical in Gatorade (most flavors don’t even use it!) then why would Gatorade want to put it in a product designed for people like me who are into sports and health?” Kavanagh asks on Change.org.The petition, which needs fewer than 95,000 more signatures before it is complete, will be sent to Gatorade, PepsiCo and other American beverage companies. “Please stop deceiving consumers and remove this chemical from your products,” the petition insists. Read More

Budweiser, Pepsi Join Forces For Super Bowl 2013: Report

Budweiser and Pepsi have reportedly set their sights on a common enemy: Coca-Cola. According to an internal email obtained by Ad Age, parent companies Anheuser-Busch InBev and PepsiCo have teamed up against the rival brand on joint promotions and in-store marketing ahead of this year’s Super Bowl.Together, the two Super Bowl sponsors will tout Bud Light, Pepsi and Doritos — also owned by PepsiCo — in campaigns leading up to the big game, such as “Super Bowl. Super Team. Super Party.” However, the alliance will not extend to in-game coverage, Paul Chibe, InBev’s vice president for U.S. marketing, told Ad Age.Despite their co-branded partnership, Budweiser and Pepsi will air separate commercials during the game. The average price of a 30-second Super Bowl spot is estimated to cost $4 million.Read More…
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