Pepsi-Cola Products Philippines, Inc. (PSE:PIP) unveiled its latest product, Tropicana Coco Quench which it plans to sell locally and in abroad. The new drink is 100% fresh and made from real coconut, locally produced with an eight-month shelf life. The product comes in 330 ml and 1 liter tetra pak packaging and initially priced at P 30 and P 80, respectively.
The effect of the announcement has not had a significant impact on the stocks price so far as PIP shares are only up by 1.25% from last week (stocks price closed at P 4.04), although it has significantly increased since the results of the first half earnings were released. PIP posted P577 million net income for six months, four times higher than same period last year.
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| PIP stocks price - 3 months |
The new product release offers a good opportunity for PIP to increase its sales as the demand for fresh coconut health drink is still high specially overseas. It would give them a strong advantage over their competition on brand recall alone. The key to this product's success is how close it tastes to a real coconut juice. It may not capture the same experience in sipping the juice straight from the shell, but the taste should not differ much. According to PIP, no preservatives or added flavors were mixed into the drink. If the company can prove what it claims the product offers, then it will only be a matter of time until the stock prices of PIP start to surge.
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Disclaimer: This article is solely the opinion of the blogger based on personal research. Any statement made is not a conclusion of absolute fact and is not intended to impose or persuade anyone's judgement.