Pepsico And The Non Alcoholic Beverage Industry - 1168 Words

PepsiCo is a world leader in convenient food and beverages that manufacture, market, distribute and sell wide variety of beverages, foods and snacks, serving consumers in almost every part of the world. PepsiCo operates under six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe (Europe) and PepsiCo Asia, Middle East and Africa (AMEA). All of the mentioned segments are registered under one symbol â€Å"PEP† whose shares are traded on the New York Stock Exchange, Chicago Stock Exchange and SIX Swiss Exchange. Since 49% of PepsiCo’s operations are outside of the U.S. that generates significant portion of the company’s net revenue, PepsiCo selected the currency of its foreign subsidiaries in which they generally operates as its functional currency, which is translated into US dollars on the company’s financial statements. I have found that two maj or players, PepsiCo and Coca-Cola dominate the non-alcoholic beverage industry around the world. There is tremendous competition within a relatively slowing industry and PepsiCo currently controls nearly 21% of the industry with its Frito- Lay segment alone controls 60% of the U.S snack-food market. PepsiCo’s consolidated financial statements are in conformity with U.S. GAAP, however if company was to converge with the IFRS, there will be positive and negative consequences on the reporting of the financial statements especiallyShow MoreRelatedPorters Five Forces Analysis Of Pepsico1241 Words   |  5 Pages In the case of PepsiCo, analyzing the non-alcoholic beverage industry using Porter’s Five Force Analysis allows for assessment and adjustment to the strategic plans implemented to sustain competitive advantage. Porter’s Five Forces model helps outline the competitiveness of the current market through analysis of the industry rivalry between companies, supplier power, buyer power, threat of substitution, and the threat of new entries (Strategic Planning Tools, 2009). All of these forces affect notRead MoreSwot Analysis : Pepsicos Competitors959 Words   |  4 PagesSimilar to the beverages industry, an increase of consumer awareness of health effects and government regulations is majorly impacting the snack industry. According to Henkes (2017), production costs will increase by at least 50% within the next 5 years due to new requirements and consumer trends such as the source of ingredients, nutritional values, organic, certified, health and wellness, and accountability. Despite the increasing costs, the most recent global survey, Snack Attack, indicatedRead MoreThe Industry Leaders Of The Non Alcoholic Beverage Market2117 Words   |  9 PagesJoseph Priestley original creation, are two corporate giants, Coca-Cola Company and PepsiCo Inc., which have grown to become household names across the world. Throughout this report, we will be exploring the strengths, weaknesses, opportunities, and threat for each of these publically traded companies. We will further compare and analyse the financial performance of these two industry leaders of the non-alcoholic beverage market. Background: Coca-Cola Company According to King, M., M., (1986), â€Å"In theRead MoreGrand Strategies For Coca Cola Company1409 Words   |  6 Pagesof the assignment I will discuss the strengths, weaknesses, opportunities, and threats (SWOT) of the Coca-Cola Company. Key strengths of the Coca-Cola Company are brand value, global presence, market share. By being the largest seller of non-alcoholic beverage in the world, Coca-Cola has risen to become one of the largest brands in the world. By the end of 2016 the Coca-Cola Company had an estimated value of $73.1 billion and claimed the number three spot of Interbrand’s annual Best Global BrandsRead MorePepsico Case Study1082 Words   |  5 PagesCompetition Strategy PepsiCo is rated the second biggest player in the global food and beverage industry (Ferguson, 2017). This rating means that they face stiff competition from rival companies like Coca-Cola and others in the industry. The strategy that PepsiCo has used over the years to stay competitive in the food and beverage industry is constructed from of two generic strategies cost leadership and broad differentiation (Ferguson, 2017). Utilization of this strategy has enabled PepsiCo to maintainRead MoreEnergy Drinks And The Energy Drink Industry1407 Words   |  6 Pagesand present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft d rinks as the traditional beverage. The shift to an energy drink, sports drinkRead MoreEssay on case study1106 Words   |  5 Pagesï » ¿PEPSICO-Carbonated drinks Market Analysis Macro environment Variables SWOT analysis Prepared by-Liveleen Sandhu Student id -300774707 PepsiCo –carbonated drinks Introduction PepsiCo is one of the famous brand in FOOD and manufacturing of consumer goods From beverages to food to snacks, they offer wide range of products choicesRead MorePepsico : A World Leader1159 Words   |  5 PagesI selected PepsiCo for my MNC research due to the fact that PepsiCo is a world leader in convenient food and beverages that manufacture, market, distribute and sell a wide variety of beverages, foods and snacks, serving consumers in almost every part of the world. PepsiCo operates under six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe (Europe) and PepsiCo Asia, Middle East and AfricaRead MoreThe Cola Industry Has On The Drinker1133 Words   |  5 PagesThe cola industry has faced a great deal of adversity in recent years, mainly concerning the health effects that consumption of cola has on the drinker. From obesity to diabetes, consumers can be plagued by a plethora of health problems through regular ingestion of soda. With such steep health consequences, consumers are beginning to make the switch away from soda and towards beverages with little to no negative health implications. There is an ever-growing availability of substitutes for sodasRead MoreFinancial Report Analysis : Coca Cola And Pepsico1020 Words   |  5 PagesFinancial Report Analysis: Coca-Cola and PepsiCo Coca-Cola and PepsiCo are the most iconic and globally known biggest soft drink companies, and their products and beverages are sold around the world. It seems that their battle in the non-alcoholic beverage drinking industry never ends. Among consumers, it is challenging to decide which of the two leading soft drinks they prefer because the both companies’ products are taking over the soft drink markets by its brand name, and the variety of products’