By Martinne Geller
Feb 22 Top executives from PepsiCo Inc's
two biggest competitors were unfazed Wednesday by a
significant increase of North American advertising by the number
two soft-drink maker.
Coca-Cola Co Chief Financial Officer Gary Fayard said
he did not expect his company to increase its advertising budget
as a percentage of revenue, even though Pepsi announced an
increase in advertising of $500 million to $600 million this
"As of today, I don't see that we'll be adding to what we've
already planned. We've got a great plan in place in the U.S. and
I feel confident in our plan," Fayard said on Wednesday at the
annual Consumer Analyst Group of New York conference in Boca
Raton, Florida. "I think we're OK."
Coca-Cola and its bottlers spent about $17 billion in direct
marketing, including advertising, in 2010 and 2011, Fayard said.
"Coca-Cola's brands have already benefited from healthy,
consistent investment in recent years," said Wells Fargo analyst
Also on Wednesday, at the same conference, Dr Pepper Snapple
Group Inc Chief Executive Larry Young said he was "very
excited" about PepsiCo's plan to boost advertising on 12 brands
including Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker and
That is because PepsiCo distributes Dr Pepper sodas in some
markets, as does Coca-Cola.
"Whenever they spend, our brands go up with them," Young
said. "The tide rises and all the boats go up with it."
PepsiCo earlier this month laid out a plan to improve its
North American beverage business that included stepped-up
advertising and thousands of job cuts.