Back To Tap Water

You know things are getting bad when Pepsi Cola shuts down six bottling plants.

Tap water is making a comeback. That’s bad news for PepsiCo’s profits.

The company, which makes Pepsi, Doritos and Quaker Oats cereal, announced on Tuesday that its quarterly earnings were down 10 percent in part because of declines in sales of soda and bottled water in the United States. In response, the company is planning to eliminate 3,300 jobs and close as many as six plants to cut costs and to refocus its efforts on stabilizing its domestic beverage business.

Financial analysts have moved Coke and Pepsi into the category of “Consumer Staples”, meaning like, Milk they are not subject to recessionary downturns. Well, it turns out that people can go  back to drinking tap water instead of bottled tap water and brown sugar water. I think we may find a lot more items that are “discretionary” rather than “staple” in the near future.

This entry was posted in Advertising, Business, Economics, Recession, Wall Street and tagged , , , . Bookmark the permalink.

0 Responses to Back To Tap Water

  1. Dan says:

    Everybody has their own habits, and I have plenty of habits that are open to criticism. But few things bemuse me more than the thought of dredging oil out of the ground, pushing it across the sea using more oil, turning it into a cylinder of toxin-laden plastic, filling it with what amounts to tap water, pushing it across the ground with more oil, and refrigerating it with yet more oil or coal or uranium, so that somebody can have a drink of friggin’ water, and then throw it into a hole in the ground so that all of the toxins can leech out. Or else it ends up floating in the Great Pacific Garbage Patch with the other billion tons of our lazy consumerism.

  2. Ken Ballweg says:

    Dan, it’s commie pinkko rat thinking like that that brought on this economic crisis. Now get out there and use what’s left of your stimulus check to drive to Costco/ Sam’s and buy a couple of cases of good pure mountain spring water. Where did this strange idea that it’s supposed to be “good” for you come from anyway?


  3. JohnO says:

    Hah, I was going to marinate in schadenfreude at Pepsi’s misfortune and repeat my tired old rant about how bad bottled water is … but Dan beat me to it.

    Don’t tell Joe the Plumber, but I’m in favor of socialized water.

  4. Dan says:

    Joe the Plumber wants to…

    wait for it, people…

    spread the water around.


  5. Socialized water?! Yeah baby! (in my best Austin Powers voice)

  6. Rick Turner says:

    Actually, the privatizing of water is one of the biggest scams and scandals emerging from the shadows. 3rd world countries are selling all water rights to private companies…even, I hear tell, the rights to collect rain water. And of course, water is the most basic need of all.

  7. Dan says:

    Third world countries? We’ve already been convinced here that what comes out of our taps is poisonous, and what comes out of a plastic bottle is healthy.

  8. Lumineux says:

    You know what’s interesting…Pepsi’s profits are down, but Coke reported an 11.8% increase in earnings for the quarter and sales grew 9.1%.

    Does that mean that Coke finally wins the war? (I hope not because my husband works for Pepsi!!)

Leave a Reply