PepsiCo - Maintains the Fizz

Sarika Anand Sarika Anand
Nov 19, 2020 8 min read
PepsiCo -  Maintains the Fizz

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.

PepsiCo, Inc., an American food and beverage company that is one of the largest in the world, with products available in more than 200 countries. It took its name in 1965 when the Pepsi-Cola Company merged with Frito-Lay, Inc. The companyโ€™s headquarters are in New York.

PepsiCo, Inc. operates worldwide beverage, snack, and food businesses. The Company manufactures or uses contract manufacturers, markets, and sells a variety of grain-based snacks, carbonated and non-carbonated beverages, and foods in countries throughout the world.

PepsiCo - Company Highlights

Startup Name PepsiCo, Inc.
Headquarters Harrison, New York, United States
Industry Beverages, Food processing
Founder Caleb Bradham
Founded August 28, 1920
CEO Ramon Laguarta
Areas served Worldwide

PepsiCo - About and How it works?
PepsiCo - Logo and its meaning
PepsiCo - Founder and History
PepsiCo - Mission
PepsiCo - Business Model
PepsiCo - Revenue and Growth
PepsiCo - Investments
PepsiCo - Acquisitions
PepsiCo - Competitors
PepsiCo - Challenges Faced
PepsiCo - Future Plans

PepsiCo - About and How it works?

PepsiCo, Inc. is an American multinational food, snack and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which included an acquisition of Tropicana Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio.

As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion, and the company's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food and beverage business in the world, behind Nestlรฉ. Within North America, PepsiCo is the largest food and beverage business by net revenue. Ramon Laguarta has been the chief executive of PepsiCo since 2018. The company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions.

PepsiCo - Logo and its meaning

The PepsiCo Logo
The PepsiCo Logo

In 2008 Pepsi redesigned its logo, which was very similar to the old one. It is claimed that the new logo represents Earthโ€™s magnetic field, feng shui, Pythagoras, geo dynamics, renaissance and more. In short, it is some kind of Da Vinci Code.

Coca-Cola Vs. PepsiCo Business Model
They are the worldโ€™s largest beverage manufacturers. We can find so many key similarities and key differences between these two business models. PepsiCo has revenue of $13.88 billion in the first quarter of 2020. Coca-Cola has revenue of $8.60 billion in first quarter of 2020.

PepsiCo - Founder and History

Pepsi's story started with Caleb Bradham, a North Carolina industrialist, who developed the first Pepsi recipe in the 1880s.

Founder of PepsiCo
Founder of PepsiCo

The first Pepsi-Cola was created by Caleb D. Bradham (1866โ€“1934), a pharmacist in New Bern, North Carolina. Hoping to duplicate the recent success of Coca-Cola, Bradham named his sweet cola-flavoured carbonated beverage Pepsi-Cola in 1898. The drink proved so popular that in 1902 Bradham incorporated the Pepsi-Cola Company. After many years of moderate prosperity, the company fell on hard times after World War I and was reorganized and reincorporated on several occasions in the 1920s.

PepsiCo - Mission

PepsiCo's overall mission is to increase the value of our shareholder's investment. "We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity."

PepsiCo - Business Model

PepsiCo generates revenue through the sale of various consumer food and beverage products. With 53% of revenues coming from food, and the remaining 47% coming from the beverage. PepsiCo is a Food and Beverage Empire that in 2017 made over $63 billion in revenues. North America Beverage segment represented 33% of those revenues. 58% of its revenues were in the US. The company distributes its products via direct-store-delivery, customer warehouses, and other distribution networks. The Company's product portfolio includes a range of high-profile brand name products, including Pepsi, Diet Pepsi, 7UP, Gatorade, Mirinda, Doritos, Lay's, Cheetos, and Ruffles.

Nestlรฉ | Largest food and beverage company | Company Profile |
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on. Nestlรฉ is the worldโ€™s largest food and beverage company, in terms of revenue. It is a Swiss Compaโ€ฆ

PepsiCo - Revenue and Growth

PepsiCo's revenue for the twelve months ending September 30, 2020 was $68.557B, a 3.8% increase year-over-year.

Year Amount Percentage change from last year
2019 $67.161B +3.87%
2018 $64.661B +1.79%
2017 $63.525B +1.16%

PepsiCo - Investments

PepsiCo has made 5 investments. Their most recent investment was on Feb 20, 2020, when Wiliot raised $20M.

Date Organization Name Round Amount
Feb 20, 2020 Wiliot Series B $20M
Jul 26, 2019 Xiangya Group Post IPO-Equity $131M
Jun 21, 2018 WaterAid Grant $4.3M
Jan 1, 2018 Yofix Grant โ‚ฌ100K
Nov 12, 2013 Ocean's Halo Seed Round $1.7M

PepsiCo - Acquisitions

PepsiCo has acquired 29 organizations. Their most recent acquisition was Rockstar Energy Drink on Mar 11, 2020. They acquired Rockstar Energy Drink for $3.9B.

Company Date Amount About Company
Rockstar Energy Drink Mar 11, 2020 $3.9B Rockstar Energy Drink is designed for those who lead active lifestyles โ€“ from Athletes to Rock Stars
Hangzhou Haomusi Food Co Feb 23, 2020 $705M Hangzhou Haomusi Food Co is the online snacks company
Pop corners Dec 2, 2019 - Pop corners is a food processing company that specializes in providing snacks and beverages
Pioneer Foods Jul 19, 2019 $1.7B Pioneer Foods produces and distributes a range of branded food and beverage products
Muscle Milk Feb 20, 2019 - Muscle Milk has a range of protein products that feature the nutrients your active lifestyle demands
Health Warrior Oct 31, 2018 - Health Warrior is a natural food company selling nutrition bars and other healthy snacks
SodaStream Aug 20, 2018 $3.2B SodaStream manufactures home beverage carbonation systems that enable consumers to transform tap water into carbonated soft drinks and more
Bare Foods May 25, 2018 - Bare Foods, a maker of baked fruit and vegetable snacks
KeVita Nov 22, 2016 - KeVita Sparkling Probiotic Drink is delicious vitality in every sip
Mabel Nov 10, 2011 - Mabel, a leading producer of cookies, crackers and snacks in Brazil

PepsiCo - Competitors

Coca-Cola is PepsiCo's top competitor. Other competitors include Keurig Dr Pepper, Danone, Nestle, Britvic, Red Bull, Mondelez International and Monster Beverage.

PepsiCo - Challenges Faced

In the spring of 2002, PepsiCo's senior management members met to consider the challenges facing the company in their quest to become a โ€œgrowth company like no other.โ€ As they surveyed the business landscape, they were guardedly optimistic about their ability to meet this ambitious goal; however, they were certain that growth was not negotiable. As Steve Reinemund, ex-chairman and ex-CEO, said in the 2001 annual report, โ€œGrowth, after all, is what PepsiCo is about.โ€

  • Industry leaders Coke and Pepsi have struggled to find growth as soda-drinking consumers buy less, and have tackled the problem differently. PepsiCo's ย North American Beverage (NAB) division's performance for the first half of 2018 showed a 2% case sales decline and an 18% operating profit shortfall. Coca-Cola eked out 2% growth in cases during this same time, with gains in Classic Coke, Zero Sugar and Diet Coke.
  • During the company's Q2 earnings call, PepsiCo CEO Indra K. Nooyi, who is stepped down from the CEO role on Oct. 3, noted the slowdown in NAB sales. Nooyi mentioned an as-yet-unseen return to revenue growth in the second half of the quarter. So far, Pepsi has leaned on increased media spending to try and juice its carbonated beverage segment

There were several reasons why growth was non-negotiable.

  • The new climate of investor expectations demanded earnings fuelled by both top-line growth and consistency.
  • Second, the company had just completed a series of spin outs, acquisitions, and mergers, transforming PepsiCo into a convenience food and beverage giant. The acquisition of Tropicana and the landmark merger with the Quaker Oats Company (Quaker) created a number of synergies that remained to be exploited. Finally, PepsiCo had to adjust to a changing competitive landscape. It could no longer measure its performance only against the fountain and grocery store sales of Coca-Cola.

The new PepsiCo was a global food and beverage contender, competing against the likes of Kraft and Nestlรฉ, as well as any upstart with a great idea for a drink or snack. Over the previous three years, the food and beverage industry continued to consolidate, and several key competitors had already established a footprint in PepsiCo's platform areas.

Coca-Cola India | Company profile |
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on. Coca-Cola India, is one of the countryโ€™s leading beverage companies, offering a range of healthy, โ€ฆ

PepsiCo - Future Plans

PepsiCo announces that its snacks and drinks will be made with renewable electricity in the U.S. by the end of 2020 and sets a new target to source 100% renewable electricity globally, across direct operations by 2030 and entire global operations by 2040.

PepsiCo, Inc. announced an ambitious global sustainability agenda designed to foster continued business growth in a way that responds to changing consumer and societal needs. The company's efforts, which focus on creating a healthier relationship between people and food, include specific 2025 goals to continue transforming PepsiCo's food and beverage product portfolio, contribute to a more sustainable global food system and help make local communities more prosperous.

"To succeed in today's volatile and changing world, corporations must do three things exceedingly well: focus on delivering strong financial performance, do it in a way that is sustainable over time and be responsive to the needs of society," said PepsiCo Chairman and ex-CEO Indra Nooyi. "The first ten years of PepsiCo's Performance with Purpose journey have demonstrated what is possible when a company does well by also doing good. We have created significant shareholder value, while taking important steps to address environmental, health and social priorities all around the world."
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