Corporate Profiles - 2021 - 100

COMPANY OVERVIEW
PepsiCo, Inc.
P
epsiCo, Inc., Purchase, NY, was active in
several categories this year: divesting in
juices, rebranding its pancake mixes and
planning to introduce the Mountain Dew brand
into the alcohol sector.
Yet snacks retained their starring role.
PepsiCo's Frito-Lay North America business
unveiled two expansion plans. One announced
in May will involve a $235 million investment to
expand a snack manufacturing and warehouse
plant in Killingly, Conn., adding two new Cheetos
manufacturing lines. The other, announced
in June, involves a $200 million investment in a
Frito-Lay plant in Rosenberg, Texas, where two
manufacturing lines will be added for Funyuns
and tortilla chips.
Frito-Lay North America in the second quarter
ended June 12 posted operating income of
$1.38 billion, up 8% from a year ago, while net
revenue increased 7% to $4.56 billion.
" I think when you look at the overall PepsiCo
business, obviously, I mean, the biggest highlight
for me is the resilience of our snack business,
right, " said Ramon L. Laguarta, chief executive
officer of PepsiCo, in a July 13 earnings
call. " So, if you think about last year, it grew
high-single-digit. This year, it's growing highsingle-digit.
That is extraordinary if you think
Frito-Lay to expand manufacturing capacity
about the shift in consumer behavior, how our
portfolio is able to adapt to more of an in-home
consumption pattern or more of an away-fromhome
consumption pattern. "
The pancake mix rebranding occurred in
February when PepsiCo debuted Pearl Milling
Co., a new name for the mix and syrup varieties
previously sold under the Aunt Jemima brand.
Quaker Oats, a business of PepsiCo, worked
with consumers, external cultural and subjectmatter
experts, and diverse agency partners to
ensure the brand was developed with inclusivity
in mind.
In August PepsiCo entered into an agreement
with PAI Partners to sell Tropicana, Naked and
other juice brands across North America, and an
irrevocable option to sell certain juice businesses
in Europe, which was to result in combined pretax
cash proceeds of about $3.3 billion.
" This joint venture with PAI enables us to
realize significant upfront value, whilst providing
the focus and resources necessary to drive
additional long-term growth for these beloved
brands, " Mr. Laguarta said. " In addition, it will
free us to concentrate on our current portfolio of
diverse offerings, including growing our portfolio
of healthier snacks, zero-calorie beverages and
products like SodaStream, which are focused on
being better for people and the planet. "
The same month PepsiCo announced it
planned to collaborate with The Boston Beer
Co. to produce Hard Mtn Dew, a new flavored
malt beverage with alcohol by volume of 5%.
Boston Beer will develop and produce the new
beverage, which is scheduled to debut early in
2022. PepsiCo set up a new entity to sell, deliver
and merchandise the product.
PepsiCo Beverages North America in 2021
bounced back from the previous year when restrictions
related to COVID-19 negatively impacted
away-from-home consumption. Operating
income more than doubled to $809 million,
while net revenue rose to $6.16 billion, up
24% from the previous year's second quarter.
After the second quarter, PepsiCo companywide
narrowed its full-year outlook to 6%
organic revenue growth from mid-single-digit
growth. CP
Chief executive officer -
Ramon L. Laguarta
PepsiCo net income
PepsiCo net revenue
PepsiCo share price
per share
$64,661
$12,515
2018
$7,314
2019
$7,120
2020
2018
2019
2020
$67,161
$70,372
$120
$130
$140
$150
$160
Oct. Dec.
2020
Feb.
2021
Apr.
June
Aug.
100 \ October 2020
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Corporate Profiles - 2021

Table of Contents for the Digital Edition of Corporate Profiles - 2021