NEW YORK (AP) — PepsiCo executives said Monday their purchase of the company's two largest bottlers was the "right move" for the industry, but a similar play by top rival Coca-Cola won't be as fruitful.
Eric Foss, who leads PepsiCo's new beverage unit, said it was ready to plunge in with its new model, having completed the $7.8 billion deal on Friday.
"The reality is, is we're ready to go," Foss told reporters on a conference call Monday.
Coca-Cola? "They're just getting started," said Foss who was Foss CEO of Pepsi Bottling Group.
Coca-Cola first announced a similar deal last week. PepsiCo announced its deal in August after months of rejections by the two bottlers, Pepsi Bottling Group and PepsiAmericas.
PepsiCo bought its two top North American bottlers so it could be quicker to market with new products and more closely control distribution.
Drinkers reaching for juices and teas — or spurning soft drinks altogether to save money during the recession — have depressed soft drink sales. And that has forced the top two producers to rethink their business models.
Both Coca-Cola and PepsiCo also hope to save money by eliminating overlap and ceasing to pay distributors.
Last Thursday, after standing for months by its model of having separate bottlers, Coca-Cola said it was buying the North American operations of its largest bottler, Coca-Cola Enterprises. It too wants more control of distribution as drinkers' tastes change.
Foss said PepsiCo's combination creates more opportunities than Coca-Cola's because PepsiCo plans to market its drinks and Frito-Lay snack foods in stores together.
"We think this deal is more transformational and has greater opportunities," he said.
He said to expect joint promotions soon. CEO Indra Nooyi said the integration will be easy. She said it took just a day to respond to the request from a major retailer for certain drinks and snacks before the Super Bowl, a prime snack-eating time.
Such a move might have taken eight weeks to work out in the past, because of all the different companies involved.
