Dorito Lay North America Case Analysis
SEGMENT ANALYSIS
Among all the six segments, Frito-Lay North America segment is the most profitable, accounting for about 21% of total revenues and 35% of division’s operating profits. PepsiCo America Beverages segment is the next most profitable segment with total revenues accounting for 32% and operating profit for 26%.
This shows that the company’s snack food business is more profitable than the company's beverages business. The Frito-Lay North America segment comprises of snacks like Lay’s chips and Doritos tortilla chips. Growth in this sector was largely due to volume growth, wide distribution network, huge economies of scale and favourable pricing. The PepsiCo Americas Beverages segment still continues to account for the largest proportion
Among all the six segments, Frito-Lay North America segment is the most profitable, accounting for about 21% of total revenues and 35% of division’s operating profits. PepsiCo America Beverages segment is the next most profitable segment with total revenues accounting for 32% and operating profit for 26%.
This shows that the company’s snack food business is more profitable than the company's beverages business. The Frito-Lay North America segment comprises of snacks like Lay’s chips and Doritos tortilla chips. Growth in this sector was largely due to volume growth, wide distribution network, huge economies of scale and favourable pricing. The PepsiCo Americas Beverages segment still continues to account for the largest proportion