Pepsi's Global Strategy

23.05.2007
When the "You're in the Pepsi Generation" advertising campaign launched in
1!3" it ma# have $een the %irst time a $rand &as mar'eted primaril# &ith an
association to its consumers' aspirational attitudes. ( decidedl# #outh)
oriented strateg#" the campaign hoped to hoo' #oung *a$# *oomers &hile
the# &ere still #oung. +n 1,- Pepsi launched another long)running campaign" ".he
/hoice o% a 0e& Generation"" and in 17 the# de$uted the "Generatio0e1t" concept.
.he ne&est campaign slogan" introduced this #ear" is "2ore 3app#"" &hich de%initel#
coincides &ith one concrete e1ample o% "more" in the pac'aging o% Pepsi products
toda#4more designs. 2an# more. (t least 35 distinct design ideas &ill grace the
pac'aging o% Pepsi's cans and $ottles this #ear alone" and this design strateg# ma#
continue inde%initel#.
.hough not "generational" in &ord" the campaign certainl# has a #outh)oriented %eel
&ith pac'age designs" advertising" and &e$sites that are %un and pla#%ul. Pepsi/o
&or'ed closel# &ith Peter (rnell and (rnell Group" $ased in 0e& Yor' /it#" to devise
a comprehensive ne& strateg# that &ould connect &ith Pepsi's core consumers. (rnell
reinvented the Pepsi pac'age as a meaning%ul and appealing communications tool %or
the latest generation o% #outh that are not over&helmed $# media" music" or digital
distractions.
Experiental packaging
(rnell Group 5a &holl#)o&ned su$sidiar# o% 6mnicom Group7 is a design and $rand
creation %irm speciali8ing in e1periential design and product innovation" pre%erring to
ta'e complete $randing and pac'aging pro9ects %rom %irst concept to complete mar'et
solutions. Peter (rnell" currentl# chairman and chie% creative o%%icer o% (rnell Group"
%ormed the (rnell Group +nnovation :a$ in 1 to place invention and innovation at
the %ore%ront in a colla$orative la$orator# %or corporations interested in designing %or
ne1t generation products and e1periences. (rnell applied man# o% his philosophies in
the Pepsi pro9ect.
"Peter has ta'en a classic and turned it into a modern" innovative" and relevant
mar'eting and communications tool"" said ;on /oughlin" chie% mar'eting o%%icer"
$everages" Pepsi/o +nternational. .he ne& glo$al loo' launched in <e$ruar# &ith
eight ne& pac'age designs across cans and $ottles" and the campaign is un%olding in a
similar manner overseas. .he can designs roll out one at a time appro1imatel# three
&ee's apart to enhance the anticipation o% discover# and to pi=ue the interest o%
collectors.
"Product innovation toda# must $e driven $# deep consumer meaning and
connectivit#"" sa#s (rnell. "+t is less a$out unmet needs and more a$out giving people
&hat the# haven't as'ed %or $ut are d#ing to have. >sing design to turn pac'aging into
personal consumer)po&ered media helps create the ultimate supportive and inspiring
relationship $et&een Pepsi and its #outh audience."
Thinking globally
The Pepsi can designs roll out one at a time, but the two-liter Pepsi bottles will
have three or our designs out at any given time!
2i'e ?o#le" creative director at (rnell Group" e1plains that there &as a great depth o%
e1ploration and research that &as conducted $e%ore even $eginning to %ormulate a
ne& Pepsi pac'aging strateg#. Pepsi/o and (rnell Group traveled e1tensivel# to
emerging mar'ets to %ind 'e# consumer product drivers %or #outh cultures and to learn
ho& the Pepsi $rand &as perceived in di%%erent countries.
.he# %ound" some&hat surprisingl#" that there &ere ver# %e& di%%erences around the
&orld in ho& consumers %elt a$out Pepsi's %un" e%%ervescent $rand image. ".he $rand
e=uit# is reall# consistent"" sa#s @ames 2iller" mar'eting director" Pepsi)/ola 0orth
(merica. .he# also %ound man# consistencies in #outh cultures around the &orld in
ho& toda#'s #outh is preoccupied &ith ne&ness" discover#" and personali8ation o%
their possessions. 2iller descri$es the design campaign's goal as "sustaina$le
discover#"" &here the consumer audience is constantl# intrigued and engaged.
?esigners at (rnell Group created the do8ens o% ne& and vi$rant designs &ith onl# a
hand%ul o% $lue and gra# shades. Aach design tells a stor# o% sorts and each can design
has a uni=ue &e$site address on the side o% the can. .he %irst one on the "Your Pepsi"
can allo&s &e$ users to design a digital $ill$oard that &ill appear in .imes B=uare"
and one coming shortl# &ill allo& users to mi1 their o&n music online.
"We rede%ined pac'aging as media in the mar'etplace %or Pepsi"" sa#s ?o#le. "+t
spea's to #outh in their language." ?o#le $elieves that the designs succeed $ecause
the# are a$le to capture the audience's mind space. ".he designs are re%lecting $ac' to
the culture instead o% tal'ing to the culture or imposing on it."
"eassuringly Pepsi
Pepsi actuall# as'ed their lo#al consumers &hat $rand elements &ould have to remain
so that the# &ould $e intuitivel# reassured that their %avorite drin's &ere not changing
and the $rand the# trusted &as still essentiall# the same. .heir ans&er &as direct and
consistent. Pepsi)lovers needed to see three elements %or sure4the Pepsi "glo$e"" the
iconic Pepsi $lue" and the %amiliar tilted Pepsi capital letters.
(rnell Group updated the primar# logo su$stantiall# and cleverl# &ithout reall#
redesigning its 'e# elements. .he most recent logo design had the Pepsi &ordmar' on
top o% and slightl# overlapping the iconic Pepsi red)&hite)and)$lue "glo$e." 6n the
previous can design" the &ordmar' &rapped hal%&a# around the can" and the glo$e
&as o%%)center. .he ne& cans and $ottles have un)$undled the &ord and glo$e" ma'ing
the ne&l# centered glo$e more o% the hero" and the smaller Pepsi &ordmar' less
prominent.
.elevision ad campaigns are rein%orcing the glo$e)centric approach $# %eaturing a
$oulder)si8ed Pepsi glo$e in various settings careening to and %ro li'e a pin$all. +n the
ads and on the %ront o% most o% the ne& pac'ages is the reassuring tag lineC "Bame
Pepsi inside" ne& loo' outside." 2iller e1plains that it is customar# and important to
reassure consumers %or at least si1 months in situations li'e this.
2iller also sees toda#'s #outh as demanding authenticit# %rom the products the# come
into contact &ith in their da#)to)da# e1periences. .he ne& Pepsi design strateg# is
versatile $ecause it can $e authentic and sta# current" and it could also ma'e
introducing special seasonal or regional designs more intriguing and less disruptive.
".his is a ne& &a# o% using pac'aging as media"" e1plains 2iller. ".he consumer is
loo'ing %or more variet# and e1pecting more %rom their $rands. .he# &ant to have a
dialogue &ith their %avorite $rands."
By Ron Romanik
Coke tops Pepsi in U.S. market share
Dayton Business Journal - by Ginger Christ , DBJ Staf Reporter
Date: Friday, March !, "#, ":$%p& 'D( - )ast Modi*ed: Friday, March !, "#, %:#p& 'D(
Related:
Manu+acturing, Food
Co,e again ran,s as the -.S. leader in so+t drin, &ar,et share.
For soda a*cionados /ho ha0e long argued their positions in the epic Co,e 0ersus 1epsi
battle, one side again has bragging rights.
Coca-Cola Co. 234S': 567 in "## once again topped 1epsiCo 8nc. 234S': 1'17
as the possessor o+ the &ost -.S. &ar,et share. But, to &a,e &atters /orse +or 1epsi
lo0ers, Diet Co,e too, second place +ro& 1epsi, pushing it to third place, according to
data released (hursday by Be0erage Digest, a publication co0ering the non-alcoholic
be0erage industry.
9o/e0er, both co&panies had +our brands on the top #.
Co,e and 1epsi both ha0e bottling operations in the Dayton region.
)ast year, Co,e sold .$: billion cases +or ; percent o+ &ar,et share. Diet Co,e sold
:"<.: &illion cases +or :.: percent o+ &ar,et share, edging out 1epsi, /hich sold !:.$
&illion cases +or :.$ percent o+ &ar,et share, Follo/ing Co,e, Diet Co,e and 1epsi on
the top # list /ere: Mountain De/, Dr. 1epper, part o+ Dr 1epper Snapple Group 8nc.
234S': D1S7, Sprite, Diet 1epsi, Diet Mountain De/, Diet Dr. 1epper and Fanta.
8n addition to top brands, the top be0erage co&pany position /ent to Coca-Cola,
+ollo/ed by 1epsiCo. (he list also includedCott Corp. 234S': C6(7, 3ational
Be0erage Corp. 23asda=: F8>>7 and9ansen 3atural Corp. 23asda=: 9ans7.
Slide 1:
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1rashant 5u&ar
Slide 4:
6B'RB8'C Corld Second )argest Be0erage Co&pany 'arning o+ &ore than D <# Billion 1resence 8n
60er "## Countries 60er "!$### '&ployees all ?round (he Corld Corld )eader 8n Con0enient Foods
Slide 5:
S8(-?(863 ?) ?3?)4S8S 1'S()' 2M?CR6 '3B8R63M'3(7 16)8(8C?) - (he -5 standard B?( increased
by ".$E and reached to ;.$ E in "## 'C636M8C?) - ".%: &illion people@ or ;.: E o+ the population
are currently une&ployed in the -5. S6C8?) - By "#A%, "A E o+ the population is proFected to be aged
<$ and o0er ('C936)6G8C?) - loo, at ele&ents such as auto&ation, Research G De0elope&ent
acti0ities. )'G?) @ Consu&er 1rotection '3B8R63M'3(?) - Carbon taHes Reduces ecological +ootprints
Slide 6:
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@ S/itiching Cost, ?ctual 1roduction Cost (9R'?( 6F S-BS(8(-('S @ Brand loyalty,'Histing (rends
B?RG?8383G 16C'R 6F S-11)8'R @ For/ard 8ntegration
Slide 7:
SC6( S(R'3G(9 @ 1roduct o+ 1epsi Co C'?53'SS - S( (i&e 8ntroduction 6116R(-38(8'S - Capable
to eHpand &ar,et (9R'?(S - )arge nu&ber o+ co&petitors
Slide 8:
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3e/ Mar,et, 'Histing 1roduct 2?K-?F83?7 M?R5'( 1'3'(R?(863 - 'Histing Mar,et, 'Histing 1roduct
D8B'RS8F8C?(863 - 3e/ Mar,et, 3e/ 1roduct
Slide 9:
M?R5'(83G M8J 1R8C' @ 2 ?K-?F83? 7 Co&petiti0e price ltr. 1ound 1)?C' - 'Histing strong
Distribution Channel o+ 1epsi Co. 1R6M6(863 - (0, 8nternet, 3e/spaper 1R6D-C( @ ?K-?F83?
21ac,age Drin,ing Cater7
In a bold strategic move, Pepsi has dropped its entire Super Bowl advertising budget to focus on the new Pepsi
Refresh Project. Under the Refresh Everthing campaign, Pepsi will award grants for communit!based projects
proposed and selected b consumers. Pepsi has earmar"ed #$% million of its ad dollars for the grant initiative ne&t
ear.
'he move is an about!face for Pepsi, which was the biggest advertiser on last ear(s broadcast of the big game and
has long made the )ational *ootball +eague championship the centerpiece of its mar"eting strateg. Pepsi has used
the event, ',(s priciest showcase for ads, to launch splash spots starring celebrities such as Britne Spears, -ind
-rawford and .// .sbourne.
'he brand was the biggest advertiser during the Super Bowl last ear. In the past, Pepsi0s advertising strateg used
the major televised football event as a wa to roll out some of its most memorable spots with celebrities li"e
Britne Spears and -ind -rawford. 'he shift aims to focus less on a singular event and more on cause!
related mar"eting. Pepsi has also increased their online advertising budget b 1%2 for $%3%.
PepsiCo Inc. (NYSE:PEP) is a global manufacturer, distributor, and marketer of food and beverages, owning many
well-known brands including Pesi, !rito-"ay, #roicana, $atorade, and %uaker &ats'
()*
Pesi+o oerates in over ,--
countries, wit. its largest markets in Nort. /merica and t.e 0nited 1ingdom'
(,*
0nlike its ma2or cometitor, t.e +oca-+ola +omany (1&), t.e ma2ority of Pesi+o3s revenues do not come from
carbonated soft drinks'
(4*
5n fact, beverages account for less t.an 6-7 of total revenue'
(4*
/dditionally, over 8-7 of
Pesi+o3s beverage sales come from its key noncarbonated brands like $atorade and #roicana'
(9*
Pesi+o3s diverse
ortfolio can mitigate t.e imact of oor conditions in any one of its markets' Strong demand growt. in international
markets -- t.e comany serves :87 of t.e world3s oulation and international sales account for 9:7 of revenue -- is
.eling to offset a sluggis. domestic market and rovided t.e comany wit. oortunities for continued e;ansion'
(6*

(8*
Pesi+o is .ig.ly e;osed to raw materials costs' Prices for t.e most imortant inut materials,aluminum, PE#
lastic, corn, sugar, and 2uice concentrates fluctuate widely'
Company Overview
PEP <evenues by Segment
(=*
Pesi+o is t.e largest snack and non-alco.olic drink roducer in t.e 0nited States, wit. 4>7 and ,67 of t.e
resective market s.ares'
(=*
#.e fall in net income was attributable to two reasons' !irst, Pesi+o recogni?ed a @498
millionmark-to-market loss onderivatives used to .edgeits commodity e;osure'
(:*
Ne;t, t.e comany incurred
restructuring costs of @694 million in relation to its Productivity for $rowt. rogram'
(>*
Contents
Co&pany 60er0ie/
o . Bottlers
o ." 6perating Seg&ents
" (rends G Forces
o ". 1epsiCo Must Sur0i0e a
-S Slo/do/n Chile Capturing
8nternational Gro/th
o "." Co&&odity Costs are
1ressuring Margins
".". 1epsi Must Face
a Declining De&and +or
Carbonated So+t Drin,s
"."." (o Gro/
8nternational 1resence and
Co&pete /ith Changing 8ndustry
Conditions, 1'1 &ust Sustain its
?c=uisition Spree
A Co&petition
o A. Be0erages
o A." Snac,s and Con0enient
Foods
o A.A Co,e 0s. 1epsi
A.A. Global Footprint
A.A." Di0ersi*ed
1roduct 6fering
% Re+erences
Bottlers
Pesi+o3s beverage division manufactures concentrated syru forms for all of Pesi3s beverage brands' PEP sells
t.ese concentrates to bottlers for roduction, ackaging, and distribution of t.e final roducts' Pesi+o grants bottlers
t.e use of Pesi trademarks and ot.er brand rig.ts wit.in certain geogra.ic regions'
#.ree comanies distribute 8-7 of Pesi+o3s Nort. /merican beverage volume:
()-*
#.e Pesi Aottling $rou (PA$) is t.e largest of Pesi+o3s bottlers' Pesi+o .as a 447 stake inPesi
Aottling $rou (PA$), and claims its s.are of income under t.e eBuity met.od of accounting'
())*
Pesi/mericas (P/S) is t.e second-largest bottler in t.e Pesi system' Pesi+o .as a 947 stake
inPesi/mericas (P/S), and claims its s.are of income under t.e eBuity met.od of accounting'
(),*
Pepsi Bottling Ventures is t.e t.ird-largest domestic bottling comany wit.in t.e Pesi system' #.e
comany was formed in )>>> w.en five of PesiCs bottling comanies consolidated to formPBV'
Operating Segments
Pesi+o oerates in si; divisions:
Frito-Lay North merica !"#$ o% &evenue' ()$ o% Operating Income*
+,)-
manufactures, markets and
sells branded snacks' Poular roducts include "ay3s Potato +.is, Doritos #ortilla +.is, +.eetos, <old $old
Pret?els, and Sun+.is'
()*
!ollowing t.e comany3s urc.ase of Pesi Aottling $rou (PA$) and E.itman (P/S),
comany e;ecutives .ave said t.at it will lead to increased 2oint marketing, bundling t.e comany3s snack and
beverage offerings'
()9*
.ua/er Foo0s North merica !($ o% &evenue' 1$ o% Operating Income*
+,)-
manufactures, markets and
sells cereals, rice, asta and ot.er branded roducts' Poular roducts include %uaker &atmeal, /unt Femima
mi;es and syrus, +a n3 +runc. cereal, <ice-/-<oni, and "ife cereal'
()*
Latin merica Foo0s !,($ o% &evenue' ,)$ o% Operating Income*
+,)-
manufactures, markets and sells a
number of leading salty and sweet snack brands' Poular roducts include $amesa, Doritos, +.eetos, and
<uffles'
(4*
PepsiCo mericas Beverages !"2$ o% &evenue' "#$ o% Operating Income*
+,)-
manufactures, markets
and sells beverage concentrates, fountain syrus and finis.ed goods, under various beverage brands' Poular
roducts include Pesi, Gountain Dew, $atorade, #roicana, and 5??e'
(4*
3nite0 4ing0om 5 6urope !,2$ o% &evenue' ,7$ o% Operating Income*
+,)-
manufactures, markets and
sells a number of leading salty and sweet snack brands' Poular roducts include "ay3s, Ealker3s, Doritos, and
+.eetos'
(4*
8i00le 6ast' %rica' an0 sia !,)$ o% &evenue' 1$ o% Operating Income*
+,)-
manufactures, markets and
sells a number of leading salty and sweet snack brands' Poular roducts include "ay3s, Smit.3s, Doritos, and
+.eetos'
()6*
9ren0s 5 Forces
PepsiCo 8ust Survive a 3S Slow0own :hile Capturing International ;rowth
Soaring food and energy rices
()8*
, t.e .ousing slum
()=*
and a weakening 2ob market
():*
are utting t.e breaks on
consumer sending in Nort. /merica, even in t.e tyically recession roof drinks and snacks market'
Emerging markets suc. as +.ina, 5ndia, Eastern Euroe and "atin /merica resent strong growt. oortunities for
Pesico' Pesi urc.ased Eimm-Aill-Dann !oods, a <ussian food and beverage comany, for @6'9 billion
()>*
Eimm-
Aill-Dan is t.e leading roducer of dairy roducts in <ussia and t.ey also .ave a large market s.are for 2uiceH t.e
urc.ase significantly e;ands Pesi3s resence in Eastern Euroe and +entral /sia'
5n addition to making international acBuisitions, Pesi+o is investing significant resources in e;anding t.eir
manufacturing caabilities in develoing markets' #.e comany .as ledged to invest @4'6 billion in +.ina t.roug.
,-)4, mainly t.roug. t.e construction of )- to ), new manufacturing facilities (in addition to t.e ,= it currently
oerates)' 5n +.ina, Pesi is also ursuing a strategy of buying back stakes in its +.inese oerations from local
artners' #.ese acBuisitions will give t.e comany greater control over its oerations w.ile increasing rofits' 0nlike
t.e saturated Nort. /merican market, +.ina3s carbonated drink market is growing at almost ,-7 annually'
(,-*
5n t.e
ast two years, t.e comany invested in two ot.er manufacturing lants in Iietnam, and it currently oerates five
lants in t.e country'
(,)*
5n "atin /merica, t.e comany .as ledged @4 million over t.e ne;t t.ree years to create an
agriculture researc. center in Peru, w.ic. will focus on t.e discovery of new otato and ot.er vegetable varieties'
(,,*
Pesi3s e;ects t.eir global nutrition business will be wort. @,- billion by ,-,-'
(,4*
Commo0ity Costs are Pressuring 8argins
Pesi+o3s rofitability can be affected directly and indirectly by t.e costs of various roduction inuts' PEP is
resonsible for urc.asing t.e raw materials used to make its roducts in all its markets and also acts as an agent for
t.e urc.ase of its bottlers3 raw materials' Some of t.e raw materials used by PEP include grains suc. as corn, w.eat
flour, oats and riceH fruit and vegetable roducts like oranges, otatoes, and 2uice concentratesH sugarH and vegetable
and essential oils' +.anges in t.e rices of suc. raw materials could imact total roduction costs and t.e comanyCs
rofit margins' +.anges in bottlers3 roduction inut costs can also indirectly imact PEP3s rofits' 5f a bottler3s raw
materials become more e;ensive, it mig.t ass on t.e increase to customers, w.ic. could lead to a loss of market
s.are as customers switc. to more affordable alternatives' #.e rimary raw materials used by bottlers are .ig.
fructose corn syru, w.ic. is used as a sweetener, aluminum, used to make cans, and PE# <esin, used for lastic
bottles'
5n an effort to insulate itself from market forces, Pesi+o .as invested @,>'4 million in five farms in +.ina, making it
one of t.e country3s largest agricultural comanies'
(,9*
#.e farms rimarily roduce otatoes for t.e comany3s otato
c.i brands
(,6*
5n addition to its farms in +.ina, Pesi .as ),,--- contract farmers in 5ndia growing otatoes on
)8,--- acres of land' 5n addition to otatoes, t.e comany is .oing to e;and its contract farming initiative to include
oats in t.e near future'
(,8*
Pepsi 8ust Face a <eclining <eman0 %or Car=onate0 So%t <rin/s
+onsumer demand for +SD .as been negatively affected by concerns about .ealt. and wellness' +arbonated soft
drinks .ave droed from 8-7 to 467 of total 0S beverage volume'
(,=*
<ising .ealt. and wellness concerns can be
attributed to increasing concern for obesity as well as education camaigns on t.e art of t.e !D/ as well as non-
rofit grous' Public camaigns to ban sales of soft drinks and fatty snacks in sc.ools .ave also negatively imacted
demand for sugary sodas' #.ese factors .ave driven a s.ift in consumtion away from +SD to .ealt.ier alternatives,
suc. as tea, 2uices, and water' Even wit.in t.e +SD segment, consumers .ave been moving away from t.e sugared
drinks, oting instead for diet beverages, w.ic. do not generally contain any sugar or calories' 5n resonse to t.is
s.ift in consumer demand, PEP .as increased its develoment of bot. diet +SD and non-+SD beverages' Eit. its
oular #roicana and $atorade brands, Pesi+o is muc. better situated t.an +oca-+ola +omany (1&) to react to
t.ese c.anging trends' !acing lower $atorade sales, Pesi develoed a social marketing deartment to track t.e
brand3s erformance and online reutation' Ay tracking user discussions online and $atorade grous on !acebook,
t.e comany .as been able to Buickly resond to consumer demands'
9o ;row International Presence an0 Compete with Changing In0ustry Con0itions' P6P must
Sustain its c>uisition Spree
Pesi+o .oes to streamline manufacturing and distribution t.roug. t.e acBuisitions, allowing it to bring new
roducts to market more Buickly and efficiently' #.e comany e;ects to gain full control of :-7 of its Nort. /merican
market and increase re-ta; rofit by @4-- million, increasing es by @')6'
(,=*
#.e deal adds @9 billion in debt to
Pesi+o3s balance s.eet' /ccording to Pesi+o +E& 5ndra Nooyi, t.e acBuisition is necessary to consolidate rofit
as t.ere is not enoug. total rofit in t.e Nort. /merican beverage industry to suort investments in several different
comanies'
(,:*
Competition
Beverages
5n t.e domestic beverage market, t.e +oca-+ola +omany (1&) is Pesi+o3s main cometitor' +oca-+ola +omany
(1&) .as a .ig.er worldwide s.are of carbonated soda beverages, but Pesi+o .as a more diverse roduct line and
leads t.e industry in non-carbonated soft drink innovations'
(,>*
Pesi+o3s revenues are also substantially .ig.er t.an
+oca-+ola3s, due to Pesi+o3s snack and convenient foods business, a market in w.ic. 1& does not articiate'
Pesi+o3s resence in t.e snack and convenient food industries, as well as its industry-leading innovations in t.e
non-carbonated soft drink segment, gives it a somew.at more balanced ortfolio t.an +oca-+ola and rovides t.e
comany wit. some rotection against furt.er declining demand for +SD' Pesi also ays t.e Dr Peer Snale
$rou (DPS) for t.e rig.ts to sell its roducts, along wit. +oca-+ola +omany (1&)'
Snac/s an0 Convenient Foo0s
Pesi+o3s !rito-"ay and %uaker brands comete in various arts of t.e larger food industry' 5ts snack foods
manufactured by t.e !rito-"ay segment .old a commanding s.are of t.e 0'S' market, accounting for around 4>7 of
domestic snack food sales' Pesi+o3s main cometitor in t.e food market overall is 1raft !oods (1!#)' 1raft3s
roducts include snacks, c.eese, diary, and cereal roducts, w.ic. uts it in cometition bot. wit. !rito-"ay and
%uaker roducts' Guc. like t.e +oca-+ola +omany (1&), 1raft does not articiate in bot. t.e food and soft drink
markets, giving PEP t.e advantage of .aving a more diverse offering of roducts'
Co/e vs. Pepsi
!or decades now, +oke and Pesi .ave battled for our .earts and minds''' but w.at about our caitalJ E.ic.
comany will add t.e best flavor to your investment ortfolioJ /lt.oug. bot. comanies s.are owerful brand names
and global franc.ises, t.ere are two imortant distinctions between Pesico and +oca-+ola t.at any investor s.ould
consider before c.oosing between t.ese comestible titans:
;lo=al Footprint
E.en it comes to international resence, +oca-+ola easily trums Pesico' +oca-+ola3s imressive global footrint
uts it in a better osition to benefit from strong growt. across t.e globe, articularly in t.e develoing world'
!urt.ermore, because +oke generates so muc. of its revenue abroad, it stands to benefit greatly from t.e continuing
weakening of t.e dollar as sales denominated in foreign currencies are suddenly wort. more dollars back .ome' /t
t.e same time, Pesico3s .eavy deendence on Nort. /merica makes it muc. more suscetible to a slowing 0S
economy'
<iversi%ie0 Pro0uct O%%ering
/not.er imortant distinction between t.e two comanies is t.eir roduct offering' E.ile 1& is essentially a one-
roduct comany t.at focuses on beverages, Pesico .as a muc. broader roduct base t.at includes beverages,
foods and snacks' +oca-+ola3s .eavy deendence on beverages, articularly carbonated beverages, makes it more
suscetible t.an Pesico to a growing aversion to soda w.ic. is erceived as fattening and un.ealt.y' &n t.e ot.er
.and, Pesico3s e;tensive ortfolio of beverages, foods and snacks uts it in a better osition from t.e trend to
.ealt.ier eating'