Pepsi (NYSE:PEP) has taken what could be considered a brash step -- it certainly seems unprecedented. It's making its Diet Pepsi brand its flagship soft drink, according to The Wall Street Journal. Are sugary soft drinks fast becoming sweet nothings?
Fool contributor Brian Gorman recently said, "For the moment, PepsiCo is winning the war by playing by new rules." This might be a good example of such a move -- it goes against the grain of what all of us have come to expect.
Indeed, this makes perfect sense when one considers the climate change over the last several years as many of us have come to the realization that our expanding caloric intake (and shrinking physical exertion) is leading to expanding girth and subsequent health problems. Quite a few companies have been making moves to give their wares a healthful spin, including Kraft (NYSE:KFT), General Mills (NYSE:GIS), and even fast food companies like McDonald's (NYSE:MCD) and Wendy's (NYSE:WEN).
It may be difficult to stomach the change for some. After all, Coca-Cola's (NYSE:KO) Coke and original Pepsi have always been the core products in the cola stables. Today's move certainly doesn't mean that those of you who enjoy the sugary taste of Pepsi won't be able to anymore -- it just means marketing dollars will be spent pushing the diet brand as opposed to the original.
Both Coke and Pepsi have been struggling with fizzy growth in a rather mature soft-drink industry, so today's news is certainly an interesting strategy. Will it pay off? Investors will no doubt be hoping that Pepsi's aggressive move to pitch its diet formulation will rope in those who have finally decided that enough's enough, sugar-wise, and woo them to the Pepsi camp.
For more on public companies' health craze, see the following Foolish content:
- Is Kraft healthier now that it spells it out?
- General Mills shook up its cereal.
- McDonald's gets moving.
Alyce Lomax does not own shares of any of the companies mentioned. She is an avid Diet Coke drinker, but she avoids Diet Pepsi -- and yes, she knows nobody likes Nutrasweet.
