|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the PBG 8-K filed Jun 3, 2009. - Pepsi
Bottling Group, Inc. - Chairman &
CEO
John, let me take
the first and I will ask Al to address the second. But on the first point around
CSDs, I do believe first of all that CSDs are benefiting in light of the current
economic conditions. Having said that I don't believe the entire improvement or
even the majority of the improvement on CSDs is due to the macroeconomic
conditions.
I
think there are a couple of things that are happening. One is we feel very good
about the work that we have done to strengthen our brand portfolio. I will tell
you that I think PepsiCo and the work they have done on the brand identity
front, in particular Pepsi and Mountain Dew, we have seen improved performance
and trends on those two trademarks. So I think the marketing and brand building
work coupled with some of the things we have put in the marketplace relative to
value price impact are also driving improved carbonated soft drink
performance.
Al Drewes
-
Pepsi Bottling Group, Inc. - SVP & CFO
So
I think, John, on the synergies I think you can think about them in three
buckets -- one would be top line, one would be just basic gross margin
improvements, and then the other one would be the actual operating expense
reductions. You get top-line growth through improved execution for example on
some of the products using the DSD system.
The top-line
benefit would be maybe a third or so, 30% something like that, of the total
amount of the synergies. There would be margin improvement if we did some
different things with Aquafina in large-format stores. And then that would be a
big piece that was SG&A and manufacturing overhead and as I mentioned
G&A expenses as well.
Mary Winn Settino
-
Pepsi Bottling Group, Inc. - VP, IR and Public Relations
With that,
operator, I don't believe we have any other questions in the queue?
FINAL
TRANSCRIPT
Operator
You have no further
questions in the queue at this time.
Eric Foss
-
Pepsi Bottling Group, Inc. - Chairman & CEO
Well, let me thank
everybody again for joining us this morning. Thanks to everybody for their
continued interest in PBG and we look forward to talking to everybody
soon.
Operator
Thank you,
ladies and gentlemen. This does conclude today's conference call. You may
disconnect your phone lines at this time and have a wonderful day. Thank you for
your participation.
|