A Detailed Overview of the Consumer Giant Pepsico
Leading Consumer Staples Company Pepsico Manufactures and Distributes Food and Beverage Products in over 200 Countries
Frequently Asked Questions
Overview of Pepsico’s Business
Pepsico Ranked Third on the Forbes 2018 List of the World’s Largest Food and Beverage Companies. the Ranking Was Based on a Composite Score of Revenue, Profit, Assets, and Market Value. Since 2012, the Company’s Organic Revenue Has Grown by an Average of 3.8%.
A Brief History of Pepsico
Pepsico Was Established in 1965 Through the Merger of Pepsi-Cola and Frito-Lay. at That Time, Pepsi-Cola’s Portfolio Comprised Pepsi-Cola, Diet Pepsi, and Mountain Dew. Frito-Lay’s Products Included Fritos Corn Chips, Lay’s Potato Chips, Cheetos Cheese-Flavored Snacks, Ruffles Potato Chips, and Rold Gold Pretzels. over the Year's, Pepsico Has Made Several Acquisitions. Notable Ones Were Its 1998 Acquisition of Tropicana and Its 2001 Purchase of Quaker Oats.
Strong Brand Portfolio
Pepsico Owns Several Popular Brands, Including Pepsi, Lays, Doritos, Mountain Dew, Cheetos, Mirinda, Ruffles, Aquafina, Quaker, and Tropicana. Notably, 22 of Its Brands Generate over $1 Billion Each in Annual Retail Sales.
Diversified Business Model
Pepsico Has a Diversified Business Model with a Strong Presence in the Snack Food and Beverage Categories. Amid Soda Beverage Volumes’ Consistent Decline, the Company’s Strength in the Snack Food Category Has Given It an Edge over Its Closest Rival, Coca-Cola. of the Company’s $64.7 Billion in Revenue in 2018, Its Food Business Accounted for 54%, and Beverages Accounted for 46%.
Advantages of Selling Complementary Products
Pepsico Benefits from Its Presence in Two Complementary Categories: Food and Beverages. Purchases in These Two Categories Tend to Coincide. at Its 2014 Presentation at the Barclays Back-to-School Consumer Conference, Pepsico Reported That 54% of Us Consumers Who Purchase Salty Snacks Also Buy a Beverage. It Also Said That Joint Displays of Frito-Lay Snack Foods and Pepsi Sodas Tended to Result in Higher Sales.
Focus on Healthier Choices
Pepsico Is Now Focusing on Transforming Its Portfolio with a Focus on Health and Wellness. Consumers’ Growing Aversion to Sugary Beverages and Salty Snacks Is Driving Healthier Product Innovation. in 2018, About 44% of Pepsico’s Beverage Portfolio in Its Top 26 Beverage Markets Had Under 100 Calories per Serving. the Company’s Goal Is to Ensure That 67% of Its Beverages Have Under 100 Calories from Added Sugars per 12-Ounce Serving by 2025.
Pepsico’s Competitors
Pepsico Competes with Global, Regional, and Private Companies Across the Food and Nonalcoholic Beverage Spaces. Coca-Cola Is Its Closest Rival in the Beverage Space. Information Resources Data Shows That Coca-Cola Led the Us Liquid Refreshment Beverage Market in 2018, with a 22% Share. Meanwhile, Pepsico Held 20% of the Market.
Insights on Pepsico’s Distribution Network
Pepsico’s Products Reach the Market Through Three Channels:
Leveraging Its Dominant Position
Pepsico Is the Second-Largest Nonalcoholic Beverage Maker in the Us. the Company’s Dominant Position Grants It Favorable Relationships with Retailers, Who Give It Significant Shelf Space. This Space Helps Pepsico Influence Consumer Shopping Patterns and Increases Complementary Food and Beverage Purchases. Furthermore, Pepsico’s and Coca-Cola’s Extensive Distribution Gives Them a Competitive Edge over Other Nonalcoholic Beverage Makers.
