business news in context, analysis with attitude

  • The Wall Street Journal reports this morning that Ahold USA is being squeezed by a wide range of promotional efforts being staged by competitors such as Price Chopper, Shaws, Big Y, and Wal-Mart – while at the same time it tries to deal with the integration of its Stop & Shop and Giant-Landover operations. This squeeze, the WSJ notes, “could put pressure on the company's recovery program.”

  • The Financial Times reports on the “significant challenges” facing both Coca-Cola and PepsiCo in the form of changing dietary habits and health-conscious consumers who are losing interest in sugared and carbonated beverages, Instead, they are gravitating toward low-calorie and nutritional drinks, such as bottled water and fruit juices.

    While Pepsi seems to be in a better position to capitalize on this shift, FT reports, neither company really is associated with health and wellness issued, and therefore both are vulnerable and in an unaccustomed position of defensiveness.

KC's View: