PepisCo will bet more of its increased marketing budget this year on digital but it is finding it harder to know where to spend that money due to a dearth of quality platforms.

The big constraint on moving more to digital is “identifying high-quality properties to advertise on,” admitted chief financial officer Hugh Johnston on the company’s quarterly earnings call last week (11 February). His attitude is similar to the one held by many of his peers that marketing needs to do more for less by focusing on cheaper albeit more effective digital activations.

“It’s not just a matter of going for pop-up ads anymore. It's really more sophisticated digital advertising,” continued Johnston. "And that is probably - more than anything, the rate-limiting factor is finding high-quality assets to invest in.” 

That said, the business is actually getting more sophisticated in terms of its ability to measure the returns it gets on its digital investment via an expansion of its big data efforts. Without going into all the details, Johnston cited the fact that PepsiCo has been able to sustain 4 per cent to 5 per cent revenue growth in what has been a challenging environment.

It’s why the business was able to sign off on nearly half (40 per cent) of Pepsi’s advertising budget for the Super Bowl this month going on digital. From Snapchat to Twitter, mobile to content marketing, the brand spread itself across several platforms over the weekend in order to generate added value beyond its TV buy.

As it has done over the last two years, PepsiCo will continue to invest in advertising in 2016. The snacks business increased advertising and marketing spend as a percentage of sales by 40 basis points for the full year in 2015 and 85 basis points in the fourth quarter. Total revenue slipped 7 per cent to $18.6bn in the three months to December, due to a hit on from foreign exchange rates on international sales.

SEE ALSO: These are the 15 most successful CMOs in the US

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NOW WATCH: Meet the 13-year-old dance prodigy at the center of a big new ad campaign

Good morning. Here's everything you need to know in the world of advertising today.

1. PepsiCo said it's difficult to find "high-quality" places to advertise online.The big constraint on moving more to digital is “identifying high-quality properties to advertise on,” admitted chief financial officer Hugh Johnston.

2. Adidas had a great response to the people upset by its Valentine's Instagram photo of a same-sex couple. The image has amassed more than 51,000 comments since it was posted.

3. The Grammys snuck an anti-streaming message into the show.Neil Portnow, the president of the National Academy of Recording Arts and Sciences, which awards the Grammys explained that artists only earn "a small fraction of a penny" from streaming services.

4. HBO is coming after Netflix using its own battle plan.HBO intends to ramp up production, which will increase by 50% this year.

5. Beyoncé put Red Lobster back on the map.Red Lobster's sales soared 33% on February 7, one day after Beyoncé released a new song that included a reference to the seafood chain.

6.Samsung aped YouTube 'unboxing' videos for its Galaxy S7 smartphone teaser campaign.The phone company's "Seven Days of Unboxing" shows people give their thoughts about the product — without showing the new phone.

7. The BBC is about to announce a massive structural overhaul.It will axe the division between television and radio and will reshape to be more audience-led, reports the Telegraph.

8. Here's how Budweiser teamed up with live music app Dice to reach UK college kids.To get their attention, Budweiser put on a series of free concerts, reports Digiday.

9. L’Oréal Paris UK has partnered with Helen Mirren to challenge old age perceptions.Mirren will put a new spin on the brand's mission statement, with the tagline: “We’ve still got it. And we’re still worth it,” reports the Drum.

10. The biggest British broadband provider, BT, wrongly named the UK as the "country that invented the internet."The US Department of Defense project in 1960s is widely credited with inventing the net, reports the BBC.

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NOW WATCH: Meet the 13-year-old dance prodigy at the center of a big new ad campaign

A majority of Americans are "actively trying to be healthier."

That means that companies are profiting from selling products branded as healthy — even if those options aren't necessarily good for you.

There's a complicated relationship between the brands you purchase and how you want others to see you. In recent years, this issue of identity seems to be increasingly tied to health.

Sometimes, that's a negative thing. In 2013, 42% of people said they'd be embarrassed to be spotted carrying a bag from McDonald's. Eating at the fast-food chain indicated a nutrition fail that went against most Americans' supposed active efforts to be healthier.

On the other hand, publicly signaling that you're a healthy, nutrition-savvy individual is the new cool. Wearing athleisure brands (even when not exercising) signals a dedication to fitness, whether you're a CrossFitter wearing Reebok or a trendy pilates-goer sporting Lululemon. Instagram allows users to share whatever health trend they're following, from the Sakara Life diet to the Kayla Itsines workout.

Now the soda industry is ready to cash in on Americans' desire to be seen being healthy.

In recent years, the need to be publicly nutritious has hurt companies like Coke and Pepsi, as soda consumption has declined. But these soda giants are now pursuing a reputation revamp with major investments in bottled water.

"Bottled water is the marketing trick of the century,"John Jewell writes in The Week.

You can get water from the tap that is significantly cheaper and often better for you than the bottled variety, Jewell argues. Why is bottled water a $13 billion industry?

The answer, in essence, comes down to what purchasing a bottle water says about the consumer.

Perrier was the first brand to successfully market bottled water, the BCC reports. A successful advertising campaign managed to popularize bottled water by selling chic "Frenchness."

"Perrier became a badge," Michael Bellas, chairman of the Beverage Marketing Corporation, told the BBC. "When you held a Perrier bottle up, it said something about yourself, it said you were sophisticated, you … understood what was happening in the world."

Other companies followed in Perrier's footsteps. Today most bottled water signifies not chicness but health and wellness, a shift furthered by Evian. By selling bottled water as the ultimate workout drink, Evian doubled global sales from 1990 to 2000, going to 100 billion liters a year from 50 billion.

Now the soda giants Coca-Cola and PepsiCo are trying to tap into that healthy image for their own brands, such as Coke's Dasani and Pepsi's Aquafina.

Both Coke and Pepsi have emphasized that they are diversifying their offerings with lower-calorie, healthier options.

"We've had some substantial investments in R&D that have allowed us to put out more new products," Al Carey, CEO of PepsiCo Americas Beverages, said at Beverage Digest's Future Smarts conference in December. "Not all of it is skewed toward healthy, but very much healthy and very much single serve."

While water is clearly healthier than soda, the comparison is a case of false equivalence. Bottled water shouldn't be understood as an alternative to soda — it's an alternative to the much more inexpensive and eco-friendly tap water.

"The purchase of bottled water allows us to communicate our uniqueness and the care we have for bodies and the environment," Jewell writes.

It looks as if Pepsi and Coke have been able to find customers who want to communicate exactly that.

In 2014, the volumes of major water brands, including Nestlé's Poland Spring, Coca-Cola's Dasani, and PepsiCo's Aquafina, grew 7% to 9%. For comparison, the volumes of Coke and Pepsi fell close to 3% in the same time period.

Now the soda giants are trying to expand into Perrier's chic bottled-water market.

Pepsi is debuting new sparkling Aquafina flavored waters. The drinks are the "official hydration sponsor of New York Fashion Week," a glitzy title that continues the elevation of the most basic beverage. At the same time, Coca-Cola is rolling out sparkling Smartwater, with actress Jennifer Aniston as a spokeswoman.

When selling bottled water, companies are actually selling an image of health and self care. So far, it looks as if customers are more than happy to pay up.

SEE ALSO: Coca-Cola has discovered an untapped market to save the soda business

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NOW WATCH: America's obsession with water — and why we're likely drinking more than we need

Sugar appears in unsuspecting foods and beverages.

According to the World Health Organization, the maximum amount of sugar people should consume in a day is less than 10% of their daily caloric intake, meaning less than 50 grams for a 2,000-calorie diet.

However, the WHO strongly recommends reducing that to 5%, or roughly 25 grams.

We took a look at a few beverages that appear to be healthy to see just how much sugar they actually contain. All of the drinks had more sugar than what the WHO recommends.

SEE ALSO: Surprising fast-food items that contain a shocking amount of hidden sugar

NOW WATCH: We put cheap beer to a blind taste test and were surprised by the results

Vitamin Water XXX

Sugar per serving: 32 grams per 20-fluid-ounce bottle 

Percent of recommended daily intake (25g): 128%

VitaCoco pure coconut water

Sugar per serving: 11 grams per 8 fluid ounces 

Sugar per bottle: 22 grams per 16.9-fluid-ounce bottle  

Percent of recommended daily intake: 44%/88%

Canada Dry tonic water

Sugar per serving: 29 grams per 10-fluid-ounce bottle

Percent of recommended daily intake: 116%

The UK will soon tax the makers of sugary soft drinks based on the amount of sugar in their beverages. 

Chancellor George Osborne announced a tax that will be imposed directly on the soft drinks industry, which will raise an estimated 530 million British pounds (more than $745 million), reports The Independent. Soft drink makers will be taxed according to the volume of sugary beverages they produce or import. 

Osborne said the impetus behind the tax was the growth of childhood obesity in the UK, with experts predicting that more than 50% of all boys and 70% of girls could be overweight or obese within a generation. 

The tax will go into effect in two years, giving soda companies time to adjust recipes and reduce sugar content. 

The UK isn't the only country considering measures to encourage decreased consumption of sugary sodas. Across the world, governments are considering and passing laws that terrify some of the biggest names in the beverage industry. 

Why target sugar?

Before sugar was the target of health advocates, fat was public enemy No. 1. However, as fat was pulled from recipes in the 1980s and ‘90s, food makers began to replace the ingredient with something else: sugar.

Now, scientific research is indicating that sugar — specifically, added sugar, as found in soda — can be similarly dangerous.

A systematic review published in 2006 that examined 50 years of studies, found a link between the amount of sugar-sweetened beverages people consumed and weight gain and obesity.

Specifically, researchers found "strong evidence for the independent role of the intake of sugar-sweetened beverages, particularly soda, in the promotion of weight gain and obesity in children and adolescents.”

Since then, an increasing amount of damning research has emerged. As a 2009 study in the New England Journal of Medicine states, "the science base linking the consumption of sugar-sweetened beverages to the risk of chronic diseases is clear.”

While many foods high in natural sugars, such as fruit and milk, provide you with necessary nutrients and fill you up, sugary beverages lack the protein and fiber needed to balance out the impact of sugar. As a result, sugary drinks such as Coke or Dr. Pepper are more likely to contribute to weight gain.

"The correlations between soda and obesity are extremely strong," Marion Nestle, a professor of nutrition, food studies, and public health at New York University and the author of the book "Soda Politics" told Business Insider.

What can the USDA do?

As evidence again sugary beverages piles up, there have been increasing efforts to curb Americans’ soda habit.

In 2013, while still in office, former New York City mayor Michael Bloomberg tried (and failed) to ban oversized sugary drinks. Around the same time, Berkeley, California, passed a tax on sugary beverages, and nearby San Francisco recently slapped warning labels on drinks with added sugar. Currently, 33 states have laws taxing sugary drinks.

Health groups' new guidelines are additionally attempting to cut soda consumption in the US. In addition to the USDA’s new guidelines, in November, the FDA announced Americans should eat and drink no more than 50 grams of sugar a day — roughly the same amount of a bottle of Coke.

These changes may not have an immediate impact, but can yield huge results in the long term. For example, a 10% tax on sugar-sweetened beverages introduced in Mexico in January 2014 was associated with a 12% reduction in sales of taxed drinks.

While critics argue that this isn't a large enough change to significantly impact consumers’ health, a 12% drop in sales is certainly enough to impact the soda business.

Even in an unscientific examination of beverage consumption in the US, it is clear that people have reduced their soda intake as the anti-sugar trend has grown. Per capita soda sales are down 25% since 1998, The New York Times reported in October.

Big soda’s reaction

Unsurprisingly, the soda industry isn’t pleased with efforts to turn customers away from sugary beverages. The American Beverage Association, the industry’s main lobby group, has already invested millions of dollars fighting laws to tax and label sugary beverages.

Anti-obesity advocates have drawn comparisons between tobacco and beverage industry groups, claiming that the American Beverage Association twists scientific research and misleading rebrands products in a way that is reminiscent of Big Tobacco’s prior efforts. So far, soda giants are trying to recoup lost sales by doing two things: convincing consumers that sweet sodas are ok to drink, as well as investing outside of traditional sugary drinks.

When it comes to attacking science, critics condemn Coca-Cola’s funding of research that emphasizes exercise over dietary changes for health and weight loss. The company promised in September to increase transparency about these research partnerships going forward. In December, emails leaked revealing that Coke helped pick a nonprofit's leaders, edited its mission statement, and provided input on minor issues such as the group’s logo.

Research aside, if soda companies want to convince people to continue to drink soda, they need to cut down on sugar and calories. One way to do that is by making serving sizes smaller. In other words, companies want to make more money by selling less soda.

While the volume of soda Americans consume has dropped, the number of bottles and cans purchased is still rising. These smaller cans and bottles have the added bonus of generating greater profit.

“The consumer is moving to smaller packages,” Sandy Douglas said in a Morgan Stanley Global Consumer and Retail Conference in November. “A 12-ounce can traded to a 7-ounce can is a 30% reduction in volume, but it’s an increase in revenue.”

It also makes the companies look good. When the American Beverage Association pledged in 2014 to cut calories by 20% by 2025, that didn’t require Coke or Pepsi to craft a lower-calorie can of soda. It could just mean that cans are getting 20% smaller.

However, soda giants do realize the need to diversify and expand beyond sugary soda.

PepsiCo CEO Indra Nooyi told investors in October that focusing solely on carbonated soft drinks was "a thing of the past."

Instead, Pepsi and other major companies are developing new healthy beverages. This year, Pepsi is launching products like an organic Gatorade, new Aquafina flavored waters, and healthy vending machines. Similarly, Coca-Cola is debuting sparkling Minute Maid and sparkling Smartwater.

Many of these products are still high in sugar (a 32-ounce bottle of PepsiCo's Gatorade can easily exceed the FDA’s 50-gram sugar limit). However, as the FDA and USDA push Americans to make healthier decisions, moderation is key to the future of Americans’ soda consumption.

The study on the impact of taxing sugary sodas in Mexico revealed that, in addition to driving a 12% reduction in taxed drinks, there was a 4% increase in purchases of untaxed drinks the year after the law was implemented. Especially as sugary beverage sales are on the decline, soda giant are eager to make up those sales with beverages perceived as nutritous.

SEE ALSO: George Osborne just introduced a new tax on sugar

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NOW WATCH: Here's How Much Soda You Have To Drink To Make It Worth Buying Your Own SodaStream

Athletes’ latest high-tech tool may be a bottle of Gatorade.

The sports beverage brand is developing a "smart cap" that communicates digitally with a band aid-like sweat patch to track users’ hydration, reports the Wall Street Journal.

While a Fitbit can track your activity levels, the smart cap and sweat patch combo would measure each user’s individual hydration needs. Since exercise impacts each individual differently, the patch would analyze sweat to instruct users on their unique needs at that precise moment in time.

To allow users to meet their personal needs, as instructed by the smart cap, Gatorade is launching small pods that snap onto the bottles, using up to a dozen different formulas with differing levels of calories, electrolytes, and carbohydrates.

"The next frontier of performance is personalized nutrition and integrating technology in sports," Xavi Cortadellas, Gatorade’s senior director of global innovation and design, said in a recent interview with PSFK Labs. "With Gatorade’s customization platform, you have the personalization aspect, but you also have the technology with the bottle."

The smart cap and the sweat patch are not planned to hit the commercial market until next year or 2018. However, prototypes of the bottle have already been tested with big name athletic teams, including Brazil’s national soccer team prior to the 2014 World Cup, and currently the Boston Celtics and FC Barcelona.

In prototypes that have been tested on the field, flashing lights tell players when they need to hydrate. Athletes can customize the smart caps with their name, team logo, and number.

The new technology comes at a time when Gatorade’s parent company, PepsiCo, is actively attempting to expand into areas outside of sugary sodas. This year, the company says it plans to debut an organic version of the sports drink.

SEE ALSO: Pepsi is launching a new kind of Gatorade

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NOW WATCH: Gatorade's top doctor says you should do these 3 things after every workout

The soda industry is facing major backlash for the amount of sugar in its beverages.

However, now consumers are realizing just how sugary sports drinks can be — and it’s causing major changes in the industry.

A 32-oz. bottle of PepsiCo-owned Gatorade has 54.4 grams of sugar, more than the recommended limit for an entire day. Coca-Cola-owned Powerade is similarly packed with sugar, with 32 ounces clocking in at 56 grams.

The excess sugar is necessary if you’re working out for an extended period of time, like a long distance runner or cyclist would be. However, for the average person, more than 50 grams of sugar in a single bottle is way too much.

Food bloggers such as the popular Food Babe have called sports drinks"one of the worst things you could put in your body," because of their non-natural ingredients and refined sugar. High-calorie sports drinks have been banned from public school vending machines across the US.

In light of the backlash, sports beverage brands are launching new innovations to keep customers.

Most sports brands now offer a lower calorie variation on the drinks. Powerade launched the zero-calorie Powerade Zero in 2008 and Powerade Zero Drops in 2013.

In addition to offering the lower-calorie G2, Gatorade is aggressively marketing the fact that it provides different drinks for consumers with different needs. High-sugar offerings are marketed as geared towards athletes needing energy, carb-heavy picks for endurance athletes, and lower-calorie options are for simple hydration.

In addition to adding lower-calorie and sugar options, companies are attempting to cash in on the growing thirst for natural beverages.

In 2014, Gatorade cut brominated vegetable oil from its ingredients list after a 15-year-old girl started an online campaign for the company to change its formula, with Powerade ditching the ingredient a year later. Last year, Dr Pepper paid $20 million for a 11.7% stake in BA Sports Nutrition, the maker of BodyArmor, a sports drink sweetened with cane sugar and free of artificial colors and flavors.

However, many consumers want more, seeking beverages that fit their individual nutritional needs. The next frontier for sports beverage brands: endless options.

Gatorade is testing small pods of liquid formulated to fit users’ individual needs (as measured by Gatorade’s sweat patch) that snap into bottles of Gatorade. PepsiCo is additionally planning to launch an organic Gatorade later this year. If users choose to purchase drinks filled with sugar or artificial ingredients as these new choices become available, the onus is on them — not Gatorade.

Parent companies are additionally investing in options outside of the typical sports beverage market. Nutrition experts have begun advising consumers to swap out Gatorade for options like coconut water with less artificial ingredients and sugar. At the same time, Pepsi and Coke have invested big in brands like ZICO coconut water, sparkling waters, and Suja Juice.

If beverage giants want to attract customers, they need to offer a variety of drinks targeting athletes of all kinds, from traditional sports drinks to new takes on water.

Growing knowledge of sports beverages’ ingredients is driving both pushback and speedy change in the industry. In 2016, highly personalized understanding of what "healthiness" means is the greatest signifier of nutrition — a fact that Gatorade is ready to cash in on.

SEE ALSO: Gatorade is developing a 'smart cap' that keeps track of hydration

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NOW WATCH: The origins of the world’s strangest sports traditions

Some soda brands just don't resonate with consumers, so they get taken off supermarket shelves, never to return.

The most memorable ones have worked their way into soda lore, refusing to be forgotten. Some have lingering fans desperately trying to bring them back.

Which of these sodas would you like Coca-Cola, PepsiCo, Dr. Pepper Snapple Group, or others to bring back? Sound off in the comments. 

Kim Bhasin contributed to an earlier version of this post.

NOW SEE: IBM quietly built the world's largest digital agency — here's how it got there

Pepsi Blue

Pepsi Blue was introduced in 2002 to compete with Coca-Cola's Vanilla Coke brand. It was berry-flavored and very sugary. The brand drew fire for being colored with Blue 1, a controversial food-coloring agent banned in some countries.

Years after it was discontinued in 2004, the infamous drink is still being searched for by some, but it's extremely difficult to find.

Orbitz

Orbitz is the only drink on this list that contained floating lumps of solid food. It was made by the Clearly Canadian Beverage Corporation, which called it a "texturally enhanced alternative beverage," when it was released in 1997.

Not enough consumers went for the gimmick and the lava-lamp-resembling drink was discontinued within one year, according to Time.

In July 2013, Clearly Canadian announced on Facebook that it was considering bringing back the semi-solid-soda drink in small batches each year. However, the drinks company's website states that it is still researching whether this is possible.

"Have you seen a bottle from 1997? The balls are still floating! NO JOKE," the website says.

Sprite Remix

Coca-Cola's Sprite Remix popped up in 2003, and it quickly developed a rabid fan base. Coke would expand its Sprite Remix flavors twice in the next two years, adding Berryclear and Aruba Jam to its portfolio following the original Tropical.

However, in 2005, Coca-Cola decided it wasn't performing well enough and killed the brand — at least in the American market.

1. You might soon be able to pay for goods in-store using Facebook Messenger

Clues in the code of the iPhone Facebook Messenger app — which includes commands such as "pay in person" and "pay directly in Messenger when you pick up the item"— imply that Messenger could be preparing an in-store purchasing method, according to The Information.

2. A major men's magazine just featured a plus-size model on its cover

Maxim will feature curvy model Ashley Graham on the cover of its latest issue, and according to Fashionista, it's a first for the American edition of the magazine.

3. Ringly made a bracelet that will light up or vibrate when you get a phone call

Wearable tech startup Ringly is best known for its line of cocktail rings. The company announced Tuesday it's launching a new product category: bracelets.

4. Burger King announces new burger bun flavor

Burger King released a limited time angriest whopper. It has a red bun infused with hot sauce with a suggested price of $5.49, according to Ad Age.

5. Peanut Butter is getting a makeover, and it’s revolutionizing a $1.9 billion dollar business

Nut butters, like almond butter, cashew butter, walnut butter, macadamia butter, and sunflower seed butter, are being suggested as replacements to the classic peanut butter. The demand is there — now, the challenge for companies is distinguishing themselves from the sea of nut butter competition.

6. This unorthodox burger chain was named the hottest in America

New York City based casual burger chain Bareburger was named one of five winners of the 2015 Hot Concept Awards by Nation's Restaurant News. 

7. Here's where Americans are doing their everyday shopping

As large grocery chains such as Kroger beef up their offerings, it appears they are beating out large all-purpose stores such as Walmart for the average shopping experience.

8. A Kroger sign is going viral for its defense of unisex bathrooms

The sign posted to the bathroom door of a Kroger in Athens, Georgia reads: "We have a UNISEX bathroom because sometimes gender specific toilets put others into uncomfortable situations." Customer reactions to the sign are mixed, but mostly positive.

9. Pepsi Co joins cage-free movement

PepsiCo uses eggs in some of its baked products. The company announced on March 28, that it will commit to using 100% cage-free eggs by 2020, reports Fortune. 

10. Millennials are killing the napkin industry

Younger consumers are opting instead for paper towels at the dinner table, The Washington Post reports. Consumers view napkins as a less economical choice than paper towels, according to the survey.

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Americans cut their soda intake yet again in 2015.

The total volume of soda consumed in the US dropped 1.2% in last year, compared to a drop of 0.9% in 2014, according to Beverage Digest's annual report.

The amount of Coca-Cola consumed by Americans dropped by 1% by volume, while Pepsi Cola dropped 3.2%.

The slide in soda consumption is a continuation of a multiyear slump. In total, Americans consumed 8.7 billion 192-ounce cases of carbonated soft drinks in 2015. That's 1.5 billion cases fewer than peak volume, which was 10.2 billion cases in 2004.

Americans turning away from landmark soda brands is an obvious negative for PepsiCo and Coca-Cola. But the companies are working hard to solve the problem — and to convince others that declining soda consumption may not be such a huge issue after  all.

One major way companies are trying to reframe the fact that Americans are drinking less soda is by emphasizing sales of packages instead of by gallonage.

"People ask me, 'When do you think the carbonated soft drink categories are going to stop declining?'" Sandy Douglas, president of Coca-Cola North America, said at the Morgan Stanley Global Consumer and Retail Conference in November. "That question is born of measuring volume, a gallonage, not packages."

Indeed, while the sheer volume of soda that Americans drink is decreasing, soda giants are quick to emphasize that the number of bottles and cans that consumers are buying is increasing. Companies like Coke can make more money selling smaller bottles than they can selling larger ones.

"The consumer is moving to smaller packages," Douglas said. "A 12-ounce can traded to a 7-ounce can is a 30% reduction in volume, but it's an increase in revenue."

Still, even if soda companies are pushing the narrative that Americans drinking less soda is, in fact, a good thing for business, that doesn't mean Pepsi and Coke aren't looking for other solutions. Coca-Cola and Pepsi are increasingly diversifying outside of their namesake sodas to sell drinks that consumers perceive as healthier — and customers are responding positively.

While volume across cola brands decreased, non-carbonated options grew in 2015. Gatorade's volume increased 6.1% in the liquid-refreshment beverage category in 2015, while consumption of water brands Dasani, Aquafina, and Poland Springs increased in volume from 6.5% to 11.4%.

SEE ALSO: Coca-Cola figured out how to make more money by selling less soda

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NOW WATCH: Here's how much sugar is in your favorite drinks

Pepsi is trying to rebrand as an authentic, craft-oriented soda — but there is no reason to believe that consumers will be fooled by the makeover.

On Wednesday, PepsiCo revealed Mtn Dew Black Label, a "deeper darker dew," that the company says is made with "dark berry flavor, real sugar, and herbal bitters." The same week, the company began rolling out its new “craft” sodas, 1893 Original Cola and 1893 Ginger Cola, named for the year when Pepsi was founded.

The new brands follow other attempts to emphasize authenticity at the company. In recent months, PepsiCo launched the vintage-inspired sodas, Caleb’s Kola and Dewshine. In January, Pepsi announced plans to open a "restaurant-bar-event space" called Kola House in New York City, intended to offer customers the premium soda experience.

Pepsi isn’t the only soda giant trying to go craft. Last year, Coca-Cola created a “craft beverages team,” and has recently been pushing smaller, glass bottles.

Soda is on shaky grounds, as the total volume of soda consumed in the US dropped 1.2% in 2015, with Pepsi dropping 3.2%. A large part of this cut is due to concerns regarding nutrition — a negative stigma that an association with nostalgia, authenticity, and craft could combat.

So, as Big Beer tries to imitate independent brewers’ marketing, Big Soda is doing the same.

Craft beer companies haven’t seen the imitation as very flattering.

"We support craft, and craft breweries should be independent, not bastardized by megacorporations who will compromise the quality of the beer to cut corners, cut people, and make a profit," Sarah Warman, the craft brewer BrewDog's head of marketing, told Business Insider.

There hasn’t been as much of a pushback on Pepsi’s attempts to revamp their image as an authentic and trendy beverage.

While the attempt to appropriate tactics from craft may be annoying to some, the decision ultimately has the power to hurt Pepsi the most. Pepsi seems to have forgotten that to get customers to perceive a product as trendy and craft, it actually has to be authentic.

Mountain Dew is successful because it is a weird, unnatural beverage unlike any other — not because it’s "classy." Mountain Dew Kickstart has done well as a variation on this theme because it taps into what people like in the drink — caffeine and energy — while removing some of the sugar, but not by completely changing what the beverage is about.

In fact, there’s very little with Pepsi brand that is, or should be, associated with craft or classiness.

Most people responded to the announcement of the Kola House with a mix of suspicion and confusion, with publications calling it "baffling," and the New York Times saying the "danger for a big, mainstream brand like Pepsi... is that it will look more like a dad at a high school party than a member of the cool kids club."

When it comes to craft beer, six out of 10 drinkers believe that independence is important when picking beer, according to Bloomberg. Younger consumers, the target customer for these hipster brands, are especially aware of authenticity, with inauthentic attempts at fitting trends even more distasteful than an earnest lack of coolness.

Pepsi isn’t wrong to believe authenticity and craft are important in the modern beverage industry. However, its attempts to shoehorn brands into what the company thinks consumers want ultimately result in a less authentic and less appealing product. While Mnt Dew Black Label may toe the line with its tongue-in-cheek ad when considered alone, Kola House has fallen entirely on the side of trying too hard before the bar has even opened its doors.

There are opportunities for Pepsi to introduce natural and nostalgic aspects into its marketing more subtly. However, at this point, the company seems to simply be twisting brands into what it thinks customers want — and failing to provide any of the actual authenticity they crave.  

SEE ALSO: Coke and Pepsi are facing a terrifying reality

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NOW WATCH: Here's how much sugar is in your favorite drinks

1. Chipotle might be launching a burger chain

Chipotle filed a trademark application for the phrase "Better Burger" this month. The chain could be a competitor to higher-end burger chains like Shake Shack and Five Guys.

2. Costco's new credit card has some of the best rewards in the market

Costco ended a 16-year deal with American Express to switch over to Visa. The new Costco Visa card will offer4% cash back on eligible gas purchases (on up to $7,000 per year, then 1% back), 3% back on restaurant and travel purchases, 2% back on Costco and Costco.com purchases, and 1% back everywhere else.

3. SONIC CEO: There's 'no doubt' customers will pay more because of minimum wage hikes

As locations from Chicago to California enforce higher minimum wages, Sonic's CEO Clifford Hudson thinks these wage increases will lead to higher prices.

4. McDonald's is making a big push in Asia

McDonald's plans to add more than 1,500 restaurants in China, Hong Kong, and South Korea in the next five years.

5. Lululemon has a plan to fire back at Under Armour

One huge factor in Lululemon's exponential growth is its ever-expanding men's business. This is hugely important, as one of Lululemon's rising competitors, Under Armour, announced plans to expand its women's line.

6. Kellogg's has a plan to revive the cereal market

Kellogg's will put start selling snack foods to appeal to millennials, reports Fortune.

7. PepsiCo announces new leadership roles at the company

PepsiCo announced that Al Carey will be promoted to CEO of PepsiCo North America, Fortune has reported.

8. Glamour announces partnership with Lane Bryant

Glamour announced that it has teamed up with Lane Bryant to appeal to the plus-size market and to send a message of body positivity, reports Racked. 

9. Shark Tank lemonade entrepreneur lands Whole Foods deal

Bee Sweet Lemonade, founded by 11-year-old Shark Tank contestant Mikaila Ulmer, will be sold in 55 Whole Foods locations, Grub Street reports. 

10. Coke begins next phase of "share a coke" campaign 

Coke will put song lyrics from more than 70 popular songs on its cans, Ad Age reports.

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(Reuters) - PepsiCo Inc's quarterly sales fell 2.9 percent, the sixth straight quarter of decline, hurt by a strong dollar and weak revenue in some markets including Latin America and Europe.

The net income attributable to the company declined to $931 million, or 64 cents per share, in the first quarter ended March 19 from $1.22 billion, or 81 cents per share, a year earlier.

The latest quarter included an impairment charge of $373 million related to Pepsi's interest in Tingyi-Asahi Beverages Holding Co Ltd.

Net revenue fell to $11.86 billion from $12.22 billion. 

(Editing by Kirti Pandey)

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Pepsi is shifting away from the soda that made it famous.

PepsiCo CEO Indra Nooyi said on Monday that less than 25% of the company’s global sales are from soda, reports The Associated Press. Instead, the company is increasingly focusing on healthy snacks and non-carbonated beverages.

Last October, Nooyi told investors that focusing solely on carbonated soft drinks was "a thing of the past." Instead, non-carbonated beverages are "driving all the growth in the whole industry."

Naturally nutritious options like bottled water and unsweetened drinks now account for 25% of sales at PepsiCo, the company announced on Monday. Nooyi calls the emphasis on products aimed at nutritionally-savvy customers "future-proofing" Pepsi's portfolio, "reshaping it to capitalize on consumers' increasing interest in health and wellness."

PepsiCo has also found success with its snack business, with the Frito-Lay division serving as a bright spot in the company's most recent quarter. Frito-Lay sales rose 3%, thanks to average price increases in the division that makes Doritos, Cheetos, and Lay's chips.

Pepsi's move toward snacks and non-soda beverages comes at a time when soda consumption is dropping across the US.

The total volume of soda consumed in the US decreased 1.2% in 2015, according to Beverage Digest's annual report. Pepsi Cola consumption in the US dropped 3.2%, compared to Coca-Cola's decrease of 1% by volume.

With soda consumption declining, soda giants have been forced to either diversify or win back customers.

Pepsi has made some changes to boost soda sales. Smaller bottles and cans have helped the soda industry more broadly boost sales while reframing declining soda consumption.

"People ask me, 'When do you think the carbonated soft-drink categories are going to stop declining?'" Sandy Douglas, president of Coca-Cola North America, said at the Morgan Stanley Global Consumer and Retail Conference in November. "That question is born of measuring volume, a gallonage, not packages."

Pepsi is also attempting to convince consumers that soda can, in fact, be an authentic and craft-oriented option.

The company recently launched hipster, vintage-inspired brands Mtn Dew Black Label, 1893 Original Cola, Caleb's Kola, and Dewshine. In January, Pepsi announced plans to open a "restaurant-bar-event space" called Kola House in New York City, intended to offer customers the premium-soda experience.

While PepsiCo isn't completely abandoning soda, the company is clearly eager to look outside of carbonated drinks for sales. When just 12% of the company’s international sales come from Pepsi Cola, it becomes easier for PepsiCo to deal with the fact that Americans are drinking less of the beverage than ever before.

SEE ALSO: Pepsi needs to ditch its new hipster attitude

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In the next few years, bottled water will likely overtake carbonated-soft-drink sales. However, instead of panicking, Pepsi and Coke are investing.

On Monday, PepsiCo CEO Indra Nooyi said on Monday that less than 25% of the company’s global sales are from soda. In comparison, nutritious items such as fruits, water, and unsweetened tea also now make up 25% of the company’s sales.

“[Pepsi has] been future-proofing our product portfolio, reshaping it to capitalize on consumers' increasing interest in health and wellness,” Nooyi said in an investors’ call.

At the top of the list: bottled water.

US consumption of bottled water is about to overtake soda, according to Euromonitor data, reports Quartz.

Water is currently one of the hottest beverages in the nonalcoholic-drink market, with consumption of water brands Dasani, Aquafina, and Poland Springs increasing in volume from 6.5% to 11.4% in 2015. For comparison, the amount of Coca-Cola consumed by Americans dropped by 1% by volume, while Pepsi Cola dropped 3.2%.

When it comes to nutrition, nothing has a better reputation than bottled water. That flawless image fits perfectly into PepsiCo and Coca-Cola’s hopes for a reputation makeover in 2016, after sugar-related concerns drove soda sales down and negative headlines up in 2015.

However, the beverage isn’t without its critics.

"Bottled water is the marketing trick of the century," writes John Jewell in The Week.

Companies selling bottled water, he argues, have managed to convince Western consumers that buying water is a healthier choice than sugary soda.

According to Jewell, the comparison is a case of false equivalence. Bottled water isn’t simply an alternative to soda — it’s an alternative to the much more inexpensive and eco-friendly tap water.

"The purchase of bottled water allows us to communicate our uniqueness and the care we have for bodies and the environment," writes Jewell.

This nutrition-minded and independent sense of self is exactly what soda giants like Pepsi and Coke are currently trying to tap into.

However, while bottled water can cost 2,000 times as much as tap water, the beverage yields surprisingly low profit margins for companies. So these beverage giants are not only investing in simple bottled tap water — the most straightforward marketing trick in existence — but also new, pricier takes on the classic H2O.

Earlier this year, Pepsi debuted new sparkling Aquafina flavored waters. The drinks were the “official hydration sponsor of New York Fashion Week” this spring, a glitzy title that continues the elevation of the most basic beverage. At the same time, Coca-Cola has rolled out sparkling Smartwater, with actress Jennifer Aniston as spokesperson.

Bottled water is a $13 billion business that, logically, doesn’t need to exist. It is also an industry that won’t stop growing. As Americans turn away from soda, that’s exactly the kind of beverage companies like Pepsi and Coke need in their portfolio.

SEE ALSO: Pepsi isn't a soda company anymore

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As Coke tries to convince customers to drink more soda, the company is completely changing the looks of some of its most famous beverages.

Coca-Cola announced on Monday that cans and bottles of Coca-Cola, Coke Zero, Diet Coke, and Coke Life are getting a makeover. Starting in Mexico and rolling out in additional markets throughout 2016 and 2017, packaging will now feature a large red disk on the label of each brand. 

Coke promises that customers will be able to easily tell the differences between the different lines thanks to the color coding of the tops of beverages — red for Coca-Cola Original Taste, black for Zero, silver for Light/Diet, and green for Life. However, the dominant red disk in the new design blurs some of the differences between products as it unifies the Coca-Cola Trademark line.

However, American Diet Coke loyalists don't need to worry about accidentally grabbing the wrong can. 

"In markets like the United States where Diet Coke has a large and loyal fan-base, the business is considering how it will integrate Diet Coke into the 'One Brand' strategy," Coca-Cola said in a statement to Business Insider on the issue. 

The company says it is currently exploring a number of packaging options for the North American market, and that changes will not be made in 2016. 

The new design is part of Coke’s "Taste the Feeling" campaign, which is the first time that all Coke Trademark brands have been featured in a single campaign.

The company is "taking the next step towards full adoption of the 'One Brand' strategy, uniting the Coca-Cola family under one visual identity and making it even easier for consumers to choose their Coca-Cola with or without calories, with or without caffeine," Coca-Cola CMO Marcos de Quinto said in a statement.

Traditionally, Coke has refrained from grouping different Coke Trademark brands together due to fear that doing so would dilute the brand. However, Coca-Cola is now relying on beverages seen as healthier than its sugary namesake to give the company a reputation (and sales) boost. 

In 2015, Coca-Cola consumption in the US dropped 1% in volume in the US, reports Beverage Digest.

With a growing demand for lower-calorie and less sugary drinks, zero-calorie sodas such as Diet Coke seem to be an obvious solution. However, these brands haven’t always produced the projected success, with Diet Coke consumption falling even farther than Coca-Cola in 2015, with a decrease of 5.6%. In the same period, Coke Zero consumption increased by 0.5%.

As Americans are drinking less soda, Pepsi and Coke have been forced to find new ways to win over increasingly nutritionally-savvy customers. Healthier options are key to the future of the businesses, with PepsiCo CEO Indra Nooyi saying on Monday that the company has been "future-proofing our product portfolio, reshaping it to capitalize on consumers' increasing interest in health and wellness."

With the new packaging, Coca-Cola is attempting to hold onto the power of Coke’s iconic brand, while simultaneously trying to make the beverage more appealing to customers who are turning away from sugary sodas.

By more directly linking the no-sugar Coke Zero and Stevia-sweetened Coke Life with the struggling Coca-Cola and Diet Coke, the company is determined to boost perception and sales across all beverage lines. However, if the red disk confuses customers instead of helping them make decisions, this unification could hurt the company in a major way as the new packaging rolls out in the coming year. 

SEE ALSO: The future of Coca-Cola and Pepsi depends on this unexpected beverage

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As consumers ditch sugary soda, Pepsi and Coke are looking for a new type of beverage to save their business. 

Coca-Cola recently said its "sparkling" sales, including its name-brand soda, remained flat, while PepsiCo said that less than 25% of the company's global sales are now from soda.

This seems to be the perfect time to capitalize on Americans' increasing interest in bottled water — especially since Coke already sells Dasani and Pepsi already sells Aquafina.

Water is one of the hottest beverages in the nonalcoholic-drink market, with consumption of water brands Dasani, Aquafina, and Poland Springs increasing in volume from6.5% to 11.4% in 2015.

For comparison, the amount of Coca-Cola consumed by Americans dropped by 1% by volume, while consumption of Pepsi dropped 3.2%.

When it comes to nutrition, nothing has a better reputation than bottled water. That flawless image fits perfectly into PepsiCo's and Coca-Cola’s hopes for a reputation makeover in 2016, after sugar-related concerns drove soda sales down and negative headlines up in 2015.

Indeed, Pepsi and Coke are already benefitting from selling beverages with a healthier reputation than soda.

Coke announced recently that sales of "still" beverages including water and Minute Maid had increased 7%. Its packaged-water volume increased in the double digits in the first quarter of 2016, outpacing increases in other healthier ready-to-drink options, sports drinks (7%), and tea (2%).

"Over the last 15 years, we've gone from stills being a single-digit part of our portfolio to now over 25% of our portfolio," Coca-Cola COO James Quincey said in an earnings call Monday. "We expect to continue to grow faster in stills ... and we'll continue to look for acquisitions to accelerate our growth."

Meanwhile, PepsiCo CEO Indra Nooyi said on Monday nutritious items such as fruits, water, and unsweetened tea also now make up 25% of the company’s sales.

Pepsi has "been future-proofing our product portfolio, reshaping it to capitalize on consumers' increasing interest in health and wellness,” Nooyi said in an investors’ call.  

However, not everybody thinks drinking bottled water is necessary for good health.

"Bottled water is the marketing trick of the century," writes John Jewell in The Week.

Companies selling bottled water, he argues, have managed to convince Western consumers that buying water is a healthier choice than sugary soda.

According to Jewell, the comparison is a case of false equivalence. Bottled water isn’t simply an alternative to soda — it’s an alternative to the much more inexpensive and eco-friendly tap water.

"The purchase of bottled water allows us to communicate our uniqueness and the care we have for bodies and the environment," Jewell writes.

This nutrition-minded and independent sense of self is exactly what soda giants like Pepsi and Coke are trying to tap into.

In 2016, the perception of healthiness is often more important for consumers and companies than actual nutritional value. That's why Coca-Cola is investing in products created to fit health trends of the moment, such as Stevia-sweetened Coke Life and Fairlife "premium milk."

Bottled water is a $13 billion business that, logically, doesn’t need to exist. It is also an industry that won’t stop growing. As Americans turn away from soda, that’s exactly the kind of beverage companies like Pepsi and Coke want in their portfolios.

SEE ALSO: Pepsi isn't a soda company anymore

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As Americans become increasingly invested in health and nutrition, some of the most infamously unhealthy companies are trying to regain their trust by encouraging consumers to eat — and buy — less junk.

Mars Foods, a subgroup of chocolate giant Mars Company and maker of brands including Uncle Ben’s rice and Dolmio pasta sauce, announced in April that it would provide customers with guidance on which products should be eaten every day and which should only be consumed occasionally.

Further, Mars actively discouraged consumers from eating some of its products  too often — like pasta sauces that are high in sugar – an idea that, at first, seems to run counterintuitive to any business's best interests.

However, Mars Foods isn't alone in this endeavor.

Soda giants Coke and Pepsi are both using reverse psychology on consumers and shareholders, as well.

While the sheer volume of soda that Americans drink is decreasing (the total volume of soda consumed in the US dropped 1.2% in the last year, compared to a drop of 0.9% in 2014, according to Beverage Digest's annual report), both soft drink behemoths are quick to emphasize that the number of bottles and cans that consumers are buying is increasing. Companies like Coke can make more money selling smaller bottles than they can selling larger ones.

At the same time, cutting down on the size of packaging is key to getting brownie points from nutrition and anti-obesity advocates.

It's a savvy trick: by serving smaller cans and bottles, Pepsi and Coca-Cola are able to fulfill the America Association's pledge to cut calories by 20% without necessarily cutting sugar from the recipe.

The trend of publicly proclaiming health initiatives that seem counter-intuitive to companies' goals of selling as many (often unhealthy) products as possible is becoming a common one in the food and beverage industry.

Nestlé and Mars Foods both recently announced plans to cut sodium from their foods, in addition to coming out in support of the FDA’s efforts to release new voluntary sodium targets.

Fast-food chains have similarly announced initiatives to remake menus. Chains such as Papa John’s, Pizza Hut, and Subway are cutting artificial ingredients from food. Taco Bell stealthily completed an initiative to cut sodium from the menu by 15%.

However, for many companies, charging more for less or remixing recipes to boost nutrition isn't enough to boost sales. Instead, these companies are investing in health-centric products that have traditionally stood in direct contrast to junk food.

PepsiCo CEO Indra Nooyi said in April that less than 25% of the company’s global sales are from soda. Rather, the company is increasingly focusing on healthy snacks and non-carbonated beverages — a process the company calls "future-proofing."

Hershey, best known for its chocolate, has acquired brands such as Krave jerky and launched its own healthy snack line called SoFit. The reasons for the health-centric changes, according to the company, are customers' changing relationship with food, increased interest in ingredients, and the rise of "better-for-you" snacks.

Nestlé is taking the move towards health a step farther, majorly investing in the nutrition and health science business and creating medicines to treat issues such as malnutrition, digestive health, and even acute kidney injury, reports Bloomberg. From 2013 to 2015, the company's nutrition and health category has grown 25% in revenue, while its confectionery revenue has dropped 14%.

But the apparently altruistic actions may be rooted in the cold, hard reality of sales: many of these companies have suffered.

First, saleshave slumped as consumers have moved away from companies' most famous products — soda, chocolate, and other junk food. Second, because of the companies' close association with these less-than-healthy products, some consumers have become wary of anything the companies sell. 

"Better-for-you" options have already proven to be bright spots in the portfolios of companies like PepsiCo and Hershey. However, only time will tell if these junk food giants will be able to divorce themselves from their negative reputations and regain consumers' trust.

And publicly encouraging consumers to eat less of products perceived as unhealthy (something Americans are already doing) allows the company to reclaim the narrative and hopefully win back lost customers. Though few companies are as direct as Mars Foods in defining which foods should or should not be eaten every day, these efforts may provide chances at gaining the trust of consumers again.

SEE ALSO: The future of Coke and Pepsi depends on this unlikely beverage

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Activist hedge fund manager Nelson Peltz has sold his stake in PepsiCo.

Shares in the company were down 1.5% around 3:20 p.m. on Friday.

Peltz took a stake in PepsiCo in late 2012, and later pushed the company to break itself up.

The stock has gone from around $70 in late 2012 to around $105 today.

Trian is also an investor in Mondelez International, and Peltz has previously pushed for that company to buy some of PepsiCo's businesses.

The exact amount of money made by Trian is unclear. Given that the stock is up by almost 50% since Peltz bought in, however, it looks like it will be a handsome profit.

Here's the statement from Trian:

In March 2016, Trian sold its stake in PepsiCo, which it held for over three years. Trian believes PepsiCo has addressed many operational issues identified by Trian — management has increased productivity efforts, reduced overhead, increased advertising investment, and delivered consistent earnings growth on a constant currency basis. The market has viewed these developments positively and PepsiCo currently trades at a substantially higher multiple than at the time of Trian's initial investment in late 2012. Trian wishes PepsiCo's management every success.

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Bottled water is taking over America.

Even surprising, stereotypically less than healthy companies like Coke and Pepsi are banking on the beverage, as they expand into healthier options.

Americans have collectively cut 61 trillion to 68 trillion calories from their diets over the past 15 years because of the increasing popularity of bottled water, according to a new report from the Beverage Marketing Corp.

Michael Bellas, the BMC's CEO, said in a statement:

Bottled water's ascent has been driven in large part by America's move to healthier beverage choices, which has effectively resulted in calorie savings for all Americans. To put this in perspective, imagine a person cutting 161 hot dogs, 126 chocolate donuts or 87 cheeseburgers from their diet last year. That's the kind of difference we're talking about when we quantify the number of calories saved due to this widespread shift to bottled water.

The total volume of bottled-water sales exceeded 11.7 billion gallons in 2015, compared to 4.7 billion in 2000. Using these figures, the BMC estimated that, on average, individuals saved 24,000 to 27,000 more calories in 2015 compared to 2000 by choosing bottled water over other options.

The rise of bottled water, today a $13 billion industry, has been supported by companies best known for less than healthy beverages, with brands such as Coca-Cola's Dasani and Pepsi's Aquafina.

PepsiCo CEO Indra Nooyi said in April that less than 25% of the company's global sales are from soda. Rather, the company is increasingly focusing on healthy snacks and non-carbonated beverages — a process the company calls "future-proofing."

Coke is in a similar situation, announcing in April that sales of "still" beverages, including water and Minute Maid, had increased 7%. Its packaged-water volume increased in the double digits in the first quarter of 2016, outpacing increases in other healthier ready-to-drink options, like sports drinks (7%) and tea (2%).

"Over the last 15 years, we've gone from still being a single-digit part of our portfolio to now over 25% of our portfolio," Coca-Cola COO James Quincey said of non-carbonated offerings in an earnings call in April. "We expect to continue to grow faster in stills ... and we'll continue to look for acquisitions to accelerate our growth."

But while organizations like the BMC and companies like Coke and Pepsi hail the rise of bottled water as kicking off a new, healthier era in the beverage industry, others are more suspicious.

"Bottled water is the marketing trick of the century," writes John Jewell in The Week.

Companies selling bottled water, he argues, have managed to convince Western consumers that buying water is a healthier choice than sugary soda, something that the BMC's statistics support.

According to Jewell, the comparison is a case of false equivalence. Bottled water isn't simply an alternative to soda — it's an alternative to the much more inexpensive and eco-friendly tap water.

"The purchase of bottled water allows us to communicate our uniqueness and the care we have for bodies and the environment," Jewell writes.

This nutrition-minded and independent sense of self is exactly what soda giants like Pepsi and Coke are trying to tap into.

In 2016, the perception of healthiness is often more important for consumers and companies than actual nutritional value. That's why Coca-Cola is investing in products created to fit health trends of the moment, such as Stevia-sweetened Coca-Cola Life and Fairlife "premium milk."

Bottled water might be making Americans healthier, but given the size of the industry, it's also potentially sapping billions of dollars from consumers. For better or worse, much of that money is going to the same companies that sell the sugary sodas that Americans buying bottled water supposedly hate so much.

SEE ALSO: Keurig's cold-drink maker was a wildly complicated, multimillion-dollar piece of tech — and that's why it flopped

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