Pepsi Fizzles

As it unveiled a new marketing push for its core soft-drink business last week, PepsiCo gave a hint that its third-quarter results might not look too good. And they don't. The company on Tuesday reported that profits tumbled 9.6 percent and announced that it would cut 3,300 jobs.

CEO Indra Nooyi told Beverage Digest last week that the company would put more focus on its carbonated drinks, sales of which continue to tumble worldwide as consumers increasingly turn to juice drinks, bottled water, and energy drinks. That trend is strongest in the North American market, where drink sales were off by 3 percent in the third quarter.

Nooyi said the company is embarking on a major new marketing effort to get people buying soft drinks again. "This is a multi-year commitment," she told Beverage Digest. Among the company's plans are new logos for Pepsi, Mountain Dew, and Sierra Mist. "We realize we have to stick with it, and the identity change is just the first step." The company also plans to focus more on its Tropicana and Gatorade brands, Bloomberg News reported Tuesday.

In its earnings announcement, PepsiCo cited falling beverage sales in the United States as the main reason for the weak period. It also lowered its outlook for the year. Margins shrank thanks to higher commodity costs.

PepsiCo's overseas sales rose 20 percent, and profits soared 18 percent, another justification for the company's global strategy.

Higher sales of snacks through its Frito-Lay brand also helped shore up the quarter.