Pepsi Bottling Group Q2 2009 Earnings Call Transcript

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2009-07-08 10:26:24.0

Tags: Holiday, PepsiCo, Call Transcript, Earnings, Pricing Strategy, Question, Pricing, Scanners, Marketing Research, Retail, Marketing, Hardware, Peripherals, Seeking Alpha, Pepsi Bottling Group Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question is with William Picarello with Consumer Edge Research.

William Picarello - Consumer Edge Research

Good morning, Eric and Al, and congratulations to Mary Winn. We’re going to miss you.

Mary Winn Settino

Thanks, Bill -- same here.

William Picarello - Consumer Edge Research

A question -- if you could kind of update us, since the quarter ended in the middle of June on industry pricing trends and volume trends, we saw promotions heat up a little bit on the fourth but how much of that was retailers investing behind the category and then also a lot has been written about the weather in the northeast but how was the more important July 4th holiday? Any change in trends there? Thanks.

Eric J. Foss

Sure. Let me ask Rob to talk about July fourth and your weather question.

Robert C. King

So Bill, what I’d say is just first on your pricing question that this year the pricing environment has been rational, and I’d say that’s consistent through the holiday as well. We feel good about the Fourth of July. I think that trends as we look at the holiday were favorable. CSD business continues to be strong and the retailers provided very solid support for our category. We don’t have the scanner data yet for the holiday so I can’t give you an indication of overall category and share performance but certainly internally we feel good about the momentum we had going into the holiday.

Eric J. Foss

And Bill, I would just comment, as we think about the pricing environment going forward, I mean, you know us very well, you can expect us as we come out of summer post Labor Day to initiate price increases like we have each and every year I think PBG's been around.

I think another encouraging note is relative to your volume question is we actually, as you know, our quarter -- second quarter ends at the end of May with our international markets and the reality is is that our Europe and Mexico volume in June, while they did pick up a trading day, we actually saw our volume slightly positive, which was a fairly significant change from what we had experienced.

Mary Winn Settino

Operator, we’ll take the next question.

Operator

Thank you. Our next question is with Judy Hong from Goldman Sachs.

Judy Hong - Goldman Sachs & Co.

 

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