Pepsi Analyst Report
Analyst Report
Table of Contents
Executive Summary……………………………………….3
Company Profile…………………………………………..4
Industry Profile……………………………………………5
Current Events/Future Outlook…………………………..9
Current Article 1……………………………………………11
Current Article 2………………………………………........13
Final Recommendation……………………………………..15
Works Cited………………………………………………….16
Executive Summary PepsiCo Inc. was a merger between Frito-Lay and Pepsi-Cola which expanded the Corporation output from only beverages to include a variety of popular snack choices. Tostitos corn chips, Fritos, Doritos, Ruffles potato chips, and Cheetos cheese-flavored snacks are all globally recognized. In 2001 PepsiCo acquired Quaker and later Naked which included healthier products such as oatmeal, juices, and Gatorade. These healthy alternatives gave PepsiCo the edge it gained over top competitor Coca-Cola, in the most previous quarter. This Corporation shows growth potential for developing modified health beverages and snacks. It is currently leading in the snack sectors. Constant health media, advances in science and the eco-friendly generation trying to eliminate plastic bottles has significantly affected the food and beverage industry. Because PepsiCo has ample resources as an industry leader, it is able to adapt to the consumers demands of healthy products. PepsiCo experienced a decline in soft beverage and snack sales due focus on health issues, only to increase sales after introducing a modification to its soft drinks. The new market for zero calorie sodas made up 49% of PepsiCo’s beverage volume in 2012. To meet consumer demands, Pepsi acquired Naked and IZZE brand drinks in 2006, both very popular. The current ratio increased in 2012, becoming 1.09 which is better than their .09 in 2011. The liquidity increased in 2011 because of Pepsi’s new efficient approach. The eco-friendly Corporation reduced packaging weight by 350
Table of Contents
Executive Summary……………………………………….3
Company Profile…………………………………………..4
Industry Profile……………………………………………5
Current Events/Future Outlook…………………………..9
Current Article 1……………………………………………11
Current Article 2………………………………………........13
Final Recommendation……………………………………..15
Works Cited………………………………………………….16
Executive Summary PepsiCo Inc. was a merger between Frito-Lay and Pepsi-Cola which expanded the Corporation output from only beverages to include a variety of popular snack choices. Tostitos corn chips, Fritos, Doritos, Ruffles potato chips, and Cheetos cheese-flavored snacks are all globally recognized. In 2001 PepsiCo acquired Quaker and later Naked which included healthier products such as oatmeal, juices, and Gatorade. These healthy alternatives gave PepsiCo the edge it gained over top competitor Coca-Cola, in the most previous quarter. This Corporation shows growth potential for developing modified health beverages and snacks. It is currently leading in the snack sectors. Constant health media, advances in science and the eco-friendly generation trying to eliminate plastic bottles has significantly affected the food and beverage industry. Because PepsiCo has ample resources as an industry leader, it is able to adapt to the consumers demands of healthy products. PepsiCo experienced a decline in soft beverage and snack sales due focus on health issues, only to increase sales after introducing a modification to its soft drinks. The new market for zero calorie sodas made up 49% of PepsiCo’s beverage volume in 2012. To meet consumer demands, Pepsi acquired Naked and IZZE brand drinks in 2006, both very popular. The current ratio increased in 2012, becoming 1.09 which is better than their .09 in 2011. The liquidity increased in 2011 because of Pepsi’s new efficient approach. The eco-friendly Corporation reduced packaging weight by 350
Cited: "PepsiCo Home | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 26 Feb. 2014 "PEP:New York Stock Quote." Bloomberg.com. Bloomberg, n.d. Web. 27 Feb. 2014. Husten, Larry. "Newly Elected President Of Institute of Medicine Is On The Pepsico Board Of Directors." Forbes. Forbes Magazine, 19 Feb. 2014. Web. 27 Feb. 2014. "Cultural Imperialism and Globalization in Pepsi Marketing." Pepsi Marketing. N.p., n.d. Web. 26 Feb. 2014. "Food, Beverage Companies Slash Calories in Obesity Fight." Current Events:. N.p., n.d. Web. 27 Feb. 2014.