Gatorade hit by plastic bottle shortage, according to PepsiCo
(Front Office Sports) – PepsiCo is expected to raise prices to offset the costs of supply chain issues, including shortages of plastic bottles for Gatorade sports drinks.
The food and beverage giant has faced higher transportation and commodity costs amid the pandemic and says it will likely incorporate a price hike in the fiscal first quarter of 2022. Sales, however, remain strong.
PepsiCo raised its annual forecast for 2021 on Tuesday following an impressive third quarter earnings report. Revenue jumped 11.6% year-on-year to $ 20.19 billion, beating Wall Street estimates of $ 19.39 billion.
He now expects total revenue to increase by 8% this year, down from a previous estimate of 6%.
- Gatorade has a 67.7% market share of the US sports drink market, per Euromonitor.
- The NBA renewed its official soda and chips partnership with PepsiCo earlier this year.
- In its last major acquisition, the company acquired Rockstar Energy in March 2020 for $ 3.85 billion.
NBA superstar LeBron James finalized a multi-year support deal with PepsiCo in March, quitting Coca-Cola after 17 years in a move first reported by Front Office Sports. Terms of the contract are not disclosed.
Despite supply chain setbacks, PepsiCo CFO Hugh Johnston told Reuters that a shortage of products like Gatorade in supermarkets was not expected.
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