Gatorade dumps 'Naturals' line of drinks

The company concedes that the beverages 'did not resonate' with consumers.

By InvestorPlace Jan 21, 2014 3:31PM

Rows of Gatorade for sale at a market
© Ira Berger / AlamyBy Christopher Freeburn


Despite a general trend toward "natural" foods, a line of sports drinks that promoted natural ingredients, including sea salt, failed to gain traction among athletic consumers.


PepsiCo (PEP) said that its Gatorade Naturals and G2 Naturals drinks were pulled from supermarket shelves in November. A statement from PepsiCo conceded that Gatorade Naturals "did not resonate" with consumers.


Gatorade Naturals hit U.S. stores in 2010. Gatorade Naturals and G2 Naturals were sold at Kroger (KR) supermarkets and Whole Foods Market (WFM) stores, Just-drinks.com reports.


Gatorade is a leading brand in the sports drink market, generating U.S. sales of about $7 billion a year. The brand has long been popular among consumers, but stumbled after a rebranding effort in 2009.


Slapping the word "natural" on products has rubbed some consumers the wrong way. In 2012, PepsiCo was sued for describing some Frito-Lay snack chips as "natural." It later shortened the "Simply Natural" name to just "Simply" for some snack chips, but attributed that change to marketing considerations. And last year, PepsiCo dropped the words "all natural" from descriptions of its Naked Juice after a lawsuit claimed the drinks contained synthetic ingredients, the Associated Press notes.


Gatorade Naturals had not been hit by any lawsuits, according to PepsiCo.


Early last year, PepsiCo announced that it would stop using brominated vegetable oil in Gatorade drinks after an online petition attracted more than 200,000 supporters.


Shares of PepsiCo climbed less than 1 percent in Tuesday afternoon trading.


More From InvestorPlace

Tags: KRPEPWFM
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

112
112 rated 1
288
288 rated 2
479
479 rated 3
645
645 rated 4
644
644 rated 5
653
653 rated 6
638
638 rated 7
483
483 rated 8
288
288 rated 9
123
123 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
CTSHCOGNIZANT TECHNOLOGY SOLUTIONS10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
ITUBITAU UNIBANCO BANCO MULTIPLO S.A.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.