A year into its "Pepsi Refresh Project," PepsiCo says the program to support charitable efforts picked by consumers is strengthening the brand, even if sales have remained tepid.
"It has worked for us," Massimo d'Amore, said chief executive of PepsiCo Beverages Americas, who noted that people who know of the project have a higher intent to purchase Pepsi than those who don't.
"That is a fact," he said at a Manhattan conference organized by trade journal Beverage Digest.
Consumers nominate projects they hope PepsiCo will fund, and projects that meet PepsiCo's guidelines are submitted to online voting. More than 61 million votes have been cast on www.RefreshEverything.com, which has received more than 17 million unique visitors and 1.6 million online comments in 2010.
To date, PepsiCo has distributed more than $14.6 million to 351 projects, and is on pace to give away $20 million this year. The program has distributed money to 54 schools, 26 parks or playgrounds, 10 children's homes and six community centers, according to the company.
Refresh has named 10 grant recipients from Georgia, including an organization providing financial literacy seminars for high school and college students and a youth center for performing arts.
The program has not immediately turned around Pepsi's performance, however. Pepsi sales fell 9.8 percent in the first nine months of 2010, according to data from Beverage Digest that did not include soda fountains or Wal-Mart.
Pepsi's decline was steeper than archrival Coke's in that period. Some Pepsi bottlers have said they would like to see more advertising that directly sells beverages, although PepsiCo executives say Refresh is a better way to build the brand right now.
"The brand equity is so huge we'd be crazy not to continue to work on it," said CEO Indra Nooyi.
A year ago, PepsiCo said it would not advertise drinks on the upcoming Super Bowl broadcast, ending a 23-year streak. The stated reason: the commitment to give millions of dollars away via Pepsi Refresh.
It has modified that stance for the next Super Bowl. Pepsi Max will have three ads during the February game, even as Pepsi Refresh enters its second year and goes international.
About the Author
Keep Reading
The Latest
Featured
