Indra Krishnamurthy Nooyi is an Indian- American business executive and the current Chief Executive Officer of PepsiCo, the second largest food and beverage business in the world by net revenue. (Figure 1) Figure 1 - Chief Executive (CEO) of PepsiCo
Product range or most profitable products
PepsiCo make, sell and distribute a variety of convenient and enjoyable foods and beverages in more than 200 countries and territories. Beverage business is the largest and highly profitable business.
Figure 3 - PepsiCo has 17 mega brands that generate $1 billion or more each in annual retail sales. Figure 2 - It constitutes of 53% of their net revenues in year 2010 in US.Beverage brands that contribute high revenue for PepsiCo are Pepsi, Mountain Dew, Sierra Mist and 7UP
Pepsico international markets are China,Japan, India, Germany, Brazil, France, Italy, Mexico, Spain, Canada, Australia, Poland, Sweden, Switzerland, and Norway. However, China is one of PepsiCo's fastest-growing international markets. PepsiCo produces and sells its products in China including Pepsi, Frito-Lay snacks, Tropicana juices, Quaker foods and Gatorade sports drinks. PepsiCo has organized into four business units, as follows: 1) PepsiCo Americas Foods (PAF), which includes Frito- Lay North America (FLNA), Quaker Foods North America (QFNA) and all of our Latin American food and snack businesses (LAF); 2) PepsiCo Americas Beverages (PAB), which includes all of our North American and Latin American beverage businesses; 3) PepsiCo Europe, which includes all beverage, food and snack businesses in Europe; and 4) PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and snack businesses in AMEA. .
Direct Competitor Comparison| |
| PEP| KO| DPS| MDLZ| Industry|
Market Cap:| 107.21B| 167.70B| 9.16B| 45.16B| 3.20B|
Employees:| 297,000| 146,200| 19,000| 126,000| 3.94K| Qtrly Rev Growth (yoy):| -0.05| 0.01| -0.00| -0.02| 0.14| Revenue (ttm):| 65.70B| 47.60B| 5.97B| 53.98B| 2.25B| Gross Margin (ttm):| 0.52| 0.60| 0.58| 0.35| 0.41|
EBITDA (ttm):| 12.59B| 13.01B| 1.31B| 9.00B| 391.35M| Operating Margin (ttm):| 0.15| 0.23| 0.18| 0.14| 0.11| Net Income (ttm):| 5.92B| 8.80B| 625.00M| 3.32B| N/A| EPS (ttm):| 3.76| 1.91| 2.92| 1.87| 0.55|
P/E (ttm):| 18.46| 19.55| 15.06| 13.59| 22.14|
PEG (5 yr expected):| 3.99| 2.27| 2.01| 1.49| 2.01|
P/S (ttm):| 1.62| 3.51| 1.53| 0.84| 1.53|
Figure 4 – Director Competitor Comparison
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KO = The Coca-Cola Company|
DPS = Dr Pepper Snapple Group, Inc.|
MDLZ = Mondelez International, Inc.|
Industry = Beverages - Soft Drinks|
Hansen Natural Corporation (HANS)
PepsiCo’s main competitors are the coca-cola company, dr pepper Snapple group inc.mondelez international, Inc ext. although PepsiCo earns the highest revenue but its quarterly revenue growth is still very low compared to its competitors. PepsiCo’s operating margin is a way lower compared to its main competitor, coca-cola and also Dr Pepper Snapple Group, Inc.
From the graph, it can be seen that PepsiCo having tight competition with coca-cola to attract the interest of consumers for its product from the year 2004 to 2010. (Figure 5) once again pepsi had tremendous hit when diet coke surpassed PepsiCo and PepsiCo fall to number three soda drinks in America. According to Mallory Russell, in business in insider advertising, (May 12, 2012), Even though PepsiCo had brought 38% more revenue in the year 2011, but its archrival sold $28 billion worth of soda while PepsiCo only sold $12 billion. Figure 5 – Total Coke vs Pepsi Statistics
Not only in U.S. measured channels, their chief beverage competitor, the Coca-Cola Company, has largest share of carbonated soft drinks consumption....