Last update on 2024-03-06

PepsiCo (PEP) Explained

An Overview of PEP: Its Business Strategy, Core Products, Major Competitors, and Essential Insights into its Role in the Beverages - Non-Alcoholic Industry

PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lays, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy offerings. Convenience foods account for 55% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the United States and overseas. International markets make up 40% of total sales and one third of operating profits.

Current Business Strategy

PepsiCo's current strategy focuses on growth through innovation, market expansion, sustainable practices, and digitalization. The company aims to meet the evolving consumer preferences by expanding its product portfolio with healthier options, increasing its presence in emerging markets, and leveraging data analytics and AI to enhance operations and customer engagement. PepsiCo also emphasizes sustainability through initiatives aimed at reducing its carbon footprint and improving water-use efficiency within its supply chain.

Most known Products

Here is the list of the 5 most well-known products of PepsiCo (PEP):

• Pepsi: A carbonated soft drink considered one of the flagship products of the company. Available in several variations including Diet Pepsi and Pepsi Zero Sugar.
• Lay's: One of the world's best-selling potato chip brands, known for its wide range of flavors and constant innovation in snack products.
• Gatorade: A popular line of sports drinks targeted at athletes and fitness enthusiasts, offering hydration and replenishment of electrolytes.
• Tropicana: A leading brand of orange juice and other fruit-based beverages known for high quality and a variety of healthy juice options.
• Quaker Oats: A line of oatmeal and other oat-based products, known for offering nutritious breakfast options and snacks.

Competitors

Here is the list of the main 5 competitors of PepsiCo (PEP):

• KO: The Coca-Cola Company is a direct competitor in the beverage industry, particularly in the carbonated soft drink segment.
• KDP: Keurig Dr Pepper, operating in the coffee and soft drink sectors, competes with PepsiCo in both hot and cold beverage markets.
• UL: Unilever competes with PepsiCo in the snacks and healthy products market through its diverse food and beverages portfolio.
• GIS: General Mills, with its extensive range of snack foods, competes directly with PepsiCo's Quaker and Frito-Lay products.
• MNST: Monster Beverage Corporation is a competitor in the energy drink segment, challenging PepsiCo's own energy drink offerings.