Challenges Facing PepsiCo

Like all companies at this time, PepsiCo has to deal with the financial issues plaguing our economy. In times of financial trouble luxuries are the first thing to go. This includes settling for value brands instead of the preferred loyalty brands. People are going to try and save pennies where ever they can and this includes trips to the grocery store. The challenge of all companies is to keep customers and push advertising efforts. But as of October 2008 PepsiCo’s current financial state is stable and productive. 
By sciondriver (flickr)  By sciondriver (flickr)

Another issue prevalent in our society is the state of our environment. PepsiCo has already made efforts to do its part including incorporating reverse osmosis to conserve water in Pepsi-cola bottling plants and Frito-Lay’s Sun Chips new solar powered facility. But it is an ongoing challenge to do more and save more. Pepsi-Co implemented an environmental policy in 2006 and is still discovering new ways to reduce and reuse waste.

 A growing concern in our nation is health. Every where you look companies are adding low-fat or low-calorie options. Since PepsiCo is a beverage and snack food provider it is important for them to offer health options or their customers might choose a different brand that has fewer calories. They have made a good start with all the diet drinks they offer and sun chips are many peoples favorite alternative to greasy potato chips.


The PepsiCo Company and a Short History Lesson

PepsiCo is a world renowned company that is comprised of PepsiCo International (PI),PepsiCo Americas Foods (PAF), and PepsiCo Americas Beverages (PAB). These divisions own and operate well known brands Frito-Lay, Tropicana, Gatorade, Pepsi-cola and Quaker Oats. Most Americans have at least one of these brands sitting on their pantry shelves and this is why PepsiCo is so successful. They make products that people want and need. The company also sells international products in the United Kingdom, Latin America, Europe, the Middle East, Asia, and Africa. They have a strong code of ethics which includes an excellent environmental policy. PepsiCo is also strong financially with an annual revenue of $39 billion and employs over 185,000 people. 


Photo by: delitefulimage(Flickr)




 Info from: PepsiCo Overview


 PepsiCo was created in 1965 with the merger of two large well known companies: Frito-Lay and Pepsi-cola, but this is not when the story begins. In the late 1980’s a young pharmacist named Caleb Bradham created the Pepsi formula in the back of his store. He soon realized that people enjoyed the refreshing new beverage and offered it in his soda shop. Later in 1902 Bradham patented and bottle the drink so people far and wide could enjoy it.

 After the 1965 merger PepsiCo acquires Mt. Dew and introduces many new marketing campaigns, but their most successful one will not be introduced for another ten years. In 1975 Pepsi’s most famous campaign launches in Texas, The Pepsi Challenge, to compete with the Coca-Cola Company. Throughout the next twenty years PepsiCo acquires Taco Bell, KFC, Pizza Hut, Mug Root Beer, and introduces diet and caffeine free Pepsi. Although the company decided to divide from the fast food industry in 1996, they gained Tropicana in 1998 and Quaker/ Gatorade in 2001.

 One thing Pepsi-cola has continued to do over time is employ legendary spokespeople. This long list includes: Joanie Sommers, Britney Spears, Jeff Gordon, Ray Charles, Mariah Carey, Beyonce, and many others. Their successful advertising campaigns and positive image has distinguished PepsiCo and its affiliates from other snack and beverage companies. It should be interesting to see what emerges in 2009.

 Info from: PepsiCo History


10 Things to Know About PepsiCo