Latest news with #Gajrawala
Yahoo
30-04-2025
- Business
- Yahoo
PepsiCo CEO was grilled about GLP-1s by a 13-year-old on his Q1 conference call
The 13-year-old daughter of a Jefferies analyst asked about the effect of GLP-1 oral medications during PepsiCo's most recent quarterly earnings call, as part of 'Bring your Kid to Work Day.' CEO Ramon Laguarta took the question seriously, saying his company was marketing snacks in smaller portions to target consumers with smaller appetites. PepsiCo CEO Ramon Laguarta was no doubt expecting tough questions during the company's Q1 earnings call; what he probably wasn't expecting was to be interrogated about the effect of pharmaceuticals on the human digestive system by a 13-year-old. Amid inquiries on revenue, tariffs, and volumes that could have comprised any other earnings call that day, Jefferies analyst Kaumil Gajrawala surprised Laguarta by letting his daughter Milena Gajrawala ask a question. 'Hey guys, it's 'Bring Your Kid to Work Day' at Jefferies. So, if you don't mind, my daughter Milena's going to ask the question,' Gajrawala said. Far from lobbing a softball question, the 13-year-old Milena Gajrawala struck at a core issue for PepsiCo and other food companies: the threat of weight-loss inducing GLP-1 medications that curb the appetites of consumers. 'So what do you think about the launch of GLP-1 oral medications coming to market next year?' she asked. Before answering, Laguarta said, 'That's awesome,' and then launched into a serious response that highlighted the company's 'fiber and hydration solutions.' 'We thought Milena asked a fair question and Ramon was happy to answer it. Hearing from her was a pleasant surprise on what is always a busy day," a PepsiCo spokesperson said in a statement to Fortune. The younger Gajrawala mentioned oral GLP-1 medications, one of which—orforglipron by Eli Lilly—is already in late-stage clinical trials. Orforglipron's potential advantage is that it is an oral medication—competitor Ozempic requires regular injections—but has a similar weight-loss effect. The drug could thus supercharge the adoption of this class of medication, which helps suppress appetite and is already cutting into the profits of snack makers and other food companies. Laguarta mentioned that another way the company is battling a potential GLP-1 slump is by emphasizing its smaller-portion snacks. 'They're eating less quantities, so our offerings in the small portions and whether it's in multipack or some other options that we provide keeps our brands in their repertoire and it's still relevant,' he said in response to Gajrawala's question. On another earnings call that day, Gajrawala also let his son, 13-year-old Kamran Gajrawala, get in on the action. Kamran Gajrawala asked the CEO of Keurig Dr Pepper a question about Dr Pepper's new blackberry-flavored soda. 'Wow, fantastic. I think it's my first ever question from a young person, and I appreciate it, Kamran. And I hope Kamran is a big fan of Dr Pepper Blackberry,' CEO Tim Cofer said. Wall Street has a venerable history of extracting investment wisdom from teenagers. In 2009, 15-year-old Matthew Robson, an intern at Morgan Stanley, was allowed to write a research note on how he and his friends consumed media. He reported that they didn't read newspapers and that few watched TV. None of them used Twitter, he wrote. And earlier this year Fortune asked a 14-year-old to canvass her friends on why they stopped trusting traditional media in favor of influencers they know are unreliable. Influencers feel like trustworthy friends, whereas adults are the enemy, she found. This story was originally featured on
CNN
16-02-2025
- Business
- CNN
Coca-Cola needs to diversify. Its way in may be milk
When James Quincey became CEO of Coca-Cola in 2017, soda had broadly been in decline over its health effects. The beverage giant was embarking on an effort to diversify its reach beyond the sugary drink. A key move? Ditching the carbonation and sticking to the basics: cow milk. Launched in 2012, Fairlife — originally founded as a joint venture between Coca-Cola and wholesale dairy producer Select Milk Producers — used whimsical, minimalistic packaging that fits with the influx of niche almond, protein and even pistachio milks, outperforming large-container beverages in the dairy aisle. In 2020, Coca-Cola fully acquired Fairlife for an initial $980 million — an acquisition that has far exceeded the soda giant's expectations due in part to social media popularity in the health and wellness space. While Americans face higher food prices and a pullback in their spending, they're still drawn to Fairlife's ultra-filtered system that draws out lactose and sugar but doubles the protein. In 2022, Coca-Cola announced that Fairlife's sales surpassed $1 billion. The success is driven by Fairlife's Core Power protein shake brand, which remains a popular staple at many grocery stores and does not have many direct market-leading competitors. But in its latest earnings call last week, Coca-Cola projected some moderation of Fairlife's growth in 2025 while it builds a facility in New York and carbonated beverages still make up the overwhelming majority of sales for Coca-Cola (its competitor, Pepsi, on the other hand, leans on its Frito-Lay snack brand). And when compared to Coca-Cola's other big acquisition in the non-soda space — Costa Coffee in 2018 — Fairlife has far outpaced it. 'The expectations were never for Fairlife to be this successful, I think even for Coke,' said Kaumil Gajrawala, an analyst for finance firm Jeffries. The acquisition was structured so there would be an earn-out — meaning the amount paid will ultimately be based on the milk brand's success. In deals like this, the buyer could pay less than buying outright if they're not sure a product will be successful, Gajrawala said. The total payment for the acquisition is now looking to be $6.2 billion, plus the $980 million Coke initially paid, according to Coca-Cola's latest earnings report. That would make it among Coke's priciest acquisitions to date. 'Dairy has been tricky for Coke to get into,' Gajrawala said. 'Nothing will ever be as important as a Coke trademark, but this is a nice contributor to growth.' The North American market has shown it will invest in health, whether it's Vital Farms' free-range eggs or Fairlife's protein-dense milk. Coca-Cola entered the right category at the right time, Citi analyst Filippo Falorni told CNN. 'You had a more health-conscious consumer in the United States, and particularly with a bigger focus on protein intake over the last couple of years,' Falorni said. Protein shakes are a $6 billion market, according to Beverage Digest, a global non-alcoholic beverage industry trade publication. Grocery items in the middle-priced range are often what Americans decide to stop buying, Gajrawala said. Consumers are either looking for the lowest-priced product or are willing to pay a lot more for something that's differentiated. Fairlife, with its successful branding, has managed to pull off the latter, Gajrawala said. And it also benefits from Coca-Cola's behemoth distribution system, which Falorni said is arguably the best in the world. TikTok users frequently post themselves drinking Core Power before a workout or making a healthier morning iced coffee using Fairlife's milk. But just as quickly as items go viral on social media, they can also fall out of trend, especially in the health and wellness space. Additionally, in 2022, Fairlife and Coca-Cola agreed to a $21 million settlement in a class-action lawsuit over allegations of inhumane treatment of its cows. The lawsuit claimed consumers were falsely charged a premium because Fairlife promoted well-treated cows. Last year, Fairlife broke ground on a massive production facility in New York state, but Coca-Cola 'is going to look for more categories' to expand its offerings, Falorni said. Coca-Cola is 'very focused on Fairlife because it's going very nicely. But I don't think they're going to stop there in terms of the portfolio diversification,' he said.
CNN
16-02-2025
- Business
- CNN
Coca-Cola needs to diversify. Its way in may be milk
When James Quincey became CEO of Coca-Cola in 2017, soda had broadly been in decline over its health effects. The beverage giant was embarking on an effort to diversify its reach beyond the sugary drink. A key move? Ditching the carbonation and sticking to the basics: cow milk. Launched in 2012, Fairlife — originally founded as a joint venture between Coca-Cola and wholesale dairy producer Select Milk Producers — used whimsical, minimalistic packaging that fits with the influx of niche almond, protein and even pistachio milks, outperforming large-container beverages in the dairy aisle. In 2020, Coca-Cola fully acquired Fairlife for an initial $980 million — an acquisition that has far exceeded the soda giant's expectations due in part to social media popularity in the health and wellness space. While Americans face higher food prices and a pullback in their spending, they're still drawn to Fairlife's ultra-filtered system that draws out lactose and sugar but doubles the protein. In 2022, Coca-Cola announced that Fairlife's sales surpassed $1 billion. The success is driven by Fairlife's Core Power protein shake brand, which remains a popular staple at many grocery stores and does not have many direct market-leading competitors. But in its latest earnings call last week, Coca-Cola projected some moderation of Fairlife's growth in 2025 while it builds a facility in New York and carbonated beverages still make up the overwhelming majority of sales for Coca-Cola (its competitor, Pepsi, on the other hand, leans on its Frito-Lay snack brand). And when compared to Coca-Cola's other big acquisition in the non-soda space — Costa Coffee in 2018 — Fairlife has far outpaced it. 'The expectations were never for Fairlife to be this successful, I think even for Coke,' said Kaumil Gajrawala, an analyst for finance firm Jeffries. The acquisition was structured so there would be an earn-out — meaning the amount paid will ultimately be based on the milk brand's success. In deals like this, the buyer could pay less than buying outright if they're not sure a product will be successful, Gajrawala said. The total payment for the acquisition is now looking to be $6.2 billion, plus the $980 million Coke initially paid, according to Coca-Cola's latest earnings report. That would make it among Coke's priciest acquisitions to date. 'Dairy has been tricky for Coke to get into,' Gajrawala said. 'Nothing will ever be as important as a Coke trademark, but this is a nice contributor to growth.' The North American market has shown it will invest in health, whether it's Vital Farms' free-range eggs or Fairlife's protein-dense milk. Coca-Cola entered the right category at the right time, Citi analyst Filippo Falorni told CNN. 'You had a more health-conscious consumer in the United States, and particularly with a bigger focus on protein intake over the last couple of years,' Falorni said. Protein shakes are a $6 billion market, according to Beverage Digest, a global non-alcoholic beverage industry trade publication. Grocery items in the middle-priced range are often what Americans decide to stop buying, Gajrawala said. Consumers are either looking for the lowest-priced product or are willing to pay a lot more for something that's differentiated. Fairlife, with its successful branding, has managed to pull off the latter, Gajrawala said. And it also benefits from Coca-Cola's behemoth distribution system, which Falorni said is arguably the best in the world. TikTok users frequently post themselves drinking Core Power before a workout or making a healthier morning iced coffee using Fairlife's milk. But just as quickly as items go viral on social media, they can also fall out of trend, especially in the health and wellness space. Additionally, in 2022, Fairlife and Coca-Cola agreed to a $21 million settlement in a class-action lawsuit over allegations of inhumane treatment of its cows. The lawsuit claimed consumers were falsely charged a premium because Fairlife promoted well-treated cows. Last year, Fairlife broke ground on a massive production facility in New York state, but Coca-Cola 'is going to look for more categories' to expand its offerings, Falorni said. Coca-Cola is 'very focused on Fairlife because it's going very nicely. But I don't think they're going to stop there in terms of the portfolio diversification,' he said.
CNN
16-02-2025
- Business
- CNN
Coca-Cola needs to diversify. Its way in may be milk
When James Quincey became CEO of Coca-Cola in 2017, soda had broadly been in decline over its health effects. The beverage giant was embarking on an effort to diversify its reach beyond the sugary drink. A key move? Ditching the carbonation and sticking to the basics: cow milk. Launched in 2012, Fairlife — originally founded as a joint venture between Coca-Cola and wholesale dairy producer Select Milk Producers — used whimsical, minimalistic packaging that fits with the influx of niche almond, protein and even pistachio milks, outperforming large-container beverages in the dairy aisle. In 2020, Coca-Cola fully acquired Fairlife for an initial $980 million — an acquisition that has far exceeded the soda giant's expectations due in part to social media popularity in the health and wellness space. While Americans face higher food prices and a pullback in their spending, they're still drawn to Fairlife's ultra-filtered system that draws out lactose and sugar but doubles the protein. In 2022, Coca-Cola announced that Fairlife's sales surpassed $1 billion. The success is driven by Fairlife's Core Power protein shake brand, which remains a popular staple at many grocery stores and does not have many direct market-leading competitors. But in its latest earnings call last week, Coca-Cola projected some moderation of Fairlife's growth in 2025 while it builds a facility in New York and carbonated beverages still make up the overwhelming majority of sales for Coca-Cola (its competitor, Pepsi, on the other hand, leans on its Frito-Lay snack brand). And when compared to Coca-Cola's other big acquisition in the non-soda space — Costa Coffee in 2018 — Fairlife has far outpaced it. 'The expectations were never for Fairlife to be this successful, I think even for Coke,' said Kaumil Gajrawala, an analyst for finance firm Jeffries. The acquisition was structured so there would be an earn-out — meaning the amount paid will ultimately be based on the milk brand's success. In deals like this, the buyer could pay less than buying outright if they're not sure a product will be successful, Gajrawala said. The total payment for the acquisition is now looking to be $6.2 billion, plus the $980 million Coke initially paid, according to Coca-Cola's latest earnings report. That would make it among Coke's priciest acquisitions to date. 'Dairy has been tricky for Coke to get into,' Gajrawala said. 'Nothing will ever be as important as a Coke trademark, but this is a nice contributor to growth.' The North American market has shown it will invest in health, whether it's Vital Farms' free-range eggs or Fairlife's protein-dense milk. Coca-Cola entered the right category at the right time, Citi analyst Filippo Falorni told CNN. 'You had a more health-conscious consumer in the United States, and particularly with a bigger focus on protein intake over the last couple of years,' Falorni said. Protein shakes are a $6 billion market, according to Beverage Digest, a global non-alcoholic beverage industry trade publication. Grocery items in the middle-priced range are often what Americans decide to stop buying, Gajrawala said. Consumers are either looking for the lowest-priced product or are willing to pay a lot more for something that's differentiated. Fairlife, with its successful branding, has managed to pull off the latter, Gajrawala said. And it also benefits from Coca-Cola's behemoth distribution system, which Falorni said is arguably the best in the world. TikTok users frequently post themselves drinking Core Power before a workout or making a healthier morning iced coffee using Fairlife's milk. But just as quickly as items go viral on social media, they can also fall out of trend, especially in the health and wellness space. Additionally, in 2022, Fairlife and Coca-Cola agreed to a $21 million settlement in a class-action lawsuit over allegations of inhumane treatment of its cows. The lawsuit claimed consumers were falsely charged a premium because Fairlife promoted well-treated cows. Last year, Fairlife broke ground on a massive production facility in New York state, but Coca-Cola 'is going to look for more categories' to expand its offerings, Falorni said. Coca-Cola is 'very focused on Fairlife because it's going very nicely. But I don't think they're going to stop there in terms of the portfolio diversification,' he said.
