Catalana de Bebidas Carbonicas, S.L. PepsiCo employs the strategy of acquisition to its advantage. The acquisition is part of a strategic pivot toward the energy-drink market as soda consumption in the U.S. wanes. PepsiCo's brands include Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. 3. Even within PBC the approach has been reviewed and refined annually based on data, feedback, and a changing business environment. The answer is simple: effective management of their brand portfolio. Every day, new opportunities emerge around M&A and we help professionals of all types comb through transactions, investors, and corporate acquirers via an easy-to-use web database that is accessible to anyone. What comes next is PepsiCo’s Competitive advantages, and how it is doing through comparing its competitors such as the Coca-Cola. Jurevicius, O., 2016. Plans for the acquisition were previously announced by The Pepsi Bottling Group (PBG), which PepsiCo acquired - along with PepsiAmericas -- in February to form Pepsi Beverages Company. [Online] Hospitality Companies . 2. PepsiCo’s Generic business strategy have been discussed, it has been concluded to be Cost leadership. The purchase of orange juice company Tropicana Products in 1998 was the start of a move into the non-carbonated drink beverage, a strategy that was further expanded on with a merger with Quaker Oats Company in 2001. Is the organisation regarded as a “good employer”? Acquisitions, together with clever partnerships, have given rise to immense growth, and as such continuing on this course appears prudent. After the acquisitions, PepsiCo had a number of significant advantages, such as strong brands, franchises, direct and indirect distribution channels, network of bottlers focused on delivering beverages and innovative research centers. Then the report lists some of the challenges that are faced by PepsiCo. This quick return on investment can be seen in PepsiCo’s share of the US non-carbonated beverage market increasing from 37.6 percent in 2000 to 45.6 percent in 2003. PepsiCo has acquired in 8 different US states, and 10 countries. PepsiCo is now considered as one of the largest food industries in the globe (Heizer & Render, 2011, pp. The Healthy Weight Commitment Foundation Pledge. Available at: However, not content with battling Coca-Cola for top dog in the carbonated beverage market, Pepsi’s parent company, PepsiCo, has crafted their way to the position of the world’s second largest beverage and snack producer. Pearson: Cape Town PepsiCo, Inc., incorporated in 1919, is a world leader in convenient foods and beverages, with revenues of about $27 billion and about 143,000 employees. PepsiCo formed in 1965 with the merger of the Pepsi- Cola Company and Frito-Lay Inc. 4 He was inspiring to experiment with various products and ingredients to create a suitable summer drink that became highly sought after way back in the summer of 1898. Sure Dividend, 2016. Available at: [Accessed 6 November 2016]. Award-winning brand consultant Simon Mainwaring highlighted this fact when he described the key to brand success as: “self-definition, transparency, authenticity and accountability.” Follow Simon on Twitter: @simonmainwaring. Brand Development: Building vs. Buying. How was this achieved? After diving into the fast food market from the late-1970s, PepsiCo restructured their brand portfolio in 1997 and returned to their core focus of snacks and carbonated beverages. Since its entrance on the market in 1893, Pepsi has grown into one of the world’s leading beverage brands. This is quite evident in their recent revenues results, which surpassed that of Coca Cola. PepsiCo ranked second. Making brand portfolios work. Stephen J. Carlotti Jr., M. E. C. a. J. P., 2004. INTRODUCTION • Pepsi International is a world renowned brand. The foundation pledged to collectively cut one trillion calories from their products sold by the end of 2012 and 1.5 trillion calories by the end of 2015. Wimm-Bill-Dann, the Russian dairy products and fruit juice maker was the huge brand acquisition of PepsiCo in 2010. Is it a financially stable and reliable organisation? The most prominent aspects of PepsiCo business strategy are based on the following six principles: First, achieving growth through mergers and acquisitions (M&A). Recently, PepsiCo has completed as a set of important acquisitions … Diversification into a number of industries or product line can help create a balance for the entity during these ups and downs. Change ), You are commenting using your Facebook account. Spain. While markets continue to develop and change, PepsiCo have stayed the course for many decades, and they are unlikely to lose their place in the upper echelons. PepsiCo’s Recipe for the Next Billion (, Speaking of an increased focus on nutrition, PepsiCo CEO Indra K. Nooyi said: “We invested in research and development to improve the nutritional value and increase the appeal of our Fun-For-You products by eliminating trans fats and reducing salt, fat and added sugar content in key brands.”, She added: “In 2014, our nutrition businesses accounted for approximately 20% of PepsiCo’s net revenue. [Accessed 5 November 2016]. 700 Anderson Hill Road, Lists Featuring This Company. 6: The Allyship Imperative, For Black Executives Like Pia Flanagan, The Fight For Racial Equity Is Personal, COVID-19 Keeps Black Friday Crowds Thin, Shoppers Shift To Online. An obvious target for criticism due to the number of high-sugar, high-calorie products in their portfolio, PepsiCo have also made nutrition and environmental issues a focus.