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PepsiCo’s Profit Margin Is Half of Coke

What’s interesting about Pepsi is…that its profit margin is half of Coke (and I have a secret photo)


PepsiCo own 23 brands

  • Beverage, Food and Snack
  • Available in > 200 countries

Coca Cola Vs. Pepsi

  • Market share in U.S.

Coca Cola Vs. PepsiCo

  • Global Revenue


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Revenue from both food and beverage

Most valuable brand in Beverage

Most valuable brand in Food

  • Pepsi was the first soft drink company to use 2L bottles
  • After 30 years, they redesigned for consumer, making it easier to hold and pour

  • Founded in 1893 in North Carolina, USA by pharmacist Caleb Bradham – pharmacist

Indra Nooyi

  • Joined PepsiCo in 1994
  • 1996 until 2000 was senior vice president for corporate strategy and development
  • President and chief financial officer from 2001
  • CEO from 2006 to 2018
  • Chairwoman from 2007 until 2019

Fear as Motivation by Indra Nooyi

PepsiCo – US – Founded 1898

Cons. Staples sector, 423,000 employees, US$86bn revenue

Main segments/products

  • Pepsi
  • Frito-Lay (snack division)
  • Quaker Foods (oatmeal, cereals, and snacks)

Its competitive advantage

Competitive advantage through a wide product portfolio of popular beverage, snack, and food brands.

How it achieved its competitive advantage

Achieved its competitive advantage through strong brand recognition, diverse product offerings, and effective marketing strategies.

Quarterly results

  • PEP reported 3Q23 recurring EPS of US$2.24, which was +1.8% YoY and +6.9% QoQ
  • The 9M23 result was 75.8% of our full-year forecast

American love sports

Pepsi Super Bowl

  • Sponsored the show for the past 10 years
  • Due to slight decrease in broadcast viewers
  • Apple Music has replaced Pepsi as the half-time show’s sponsor

Indra Nooyi speaking about the challenges women face has had 1.9m views

Valuation


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