As tap water scores, Pepsico profits dry up

To expect safe potable water from municipal supplies in India may be something in the realm of fantasy today. But in the United States, the water quality has been maintained to such standards that beverage giant Pepsico’s profit tap no longer gushes. This story in the New York Times makes that clear.

Incidentally, the need for Pepsico to concentrate on its US beverage business in the face of fading water profits is acknowledged by Indra Nooyi, the company’s boss. Ms. Nooyi has close contacts with Chennai, India (and according to news television channel NDTV 24X7, property too). Chennai is part of Pepsi’s Indian operations that contributes a great deal to its coffers through bottled water sales.


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