Pepsi buys Izze

Rachel Dornhelm Sep 27, 2006
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Pepsi buys Izze

Rachel Dornhelm Sep 27, 2006
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MARK AUSTIN THOMAS: Pepsi says it will buy the sparkling juice company Izze. The move is the latest for an industry trying to distance itself from sugary sodas. Rachel Dornhelm has more.


RACHEL DORNHELM: The Izze fizzy fruit beverage is priced higher than a lot of Pepsi’s offerings.

But beverage marketing specialist Gary Hemphill says that’s OK, because Izze is fruit-based and usually sold in single servings. Consumers expect to pay more for those.

Hemphill says this is a sparkling acquisition for the soda giant.

GARY HEMPHILL: Pepsi already has a partnership with Starbucks which is one of the primary distribution outlets for the brand and it certainly fits within their desire to grow within this arena of healthier, better-for-you beverages.

Hemphill says Pepsi’s purchase demonstrates the beverage industry’s shift from mega-brand sodas to products for niche markets.

Think sports drinks, vitamin-enriched waters and coffee products.

I’m Rachel Dornhelm for Marketplace.

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