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1. PEPSICO INC. SWOT
ANALYSIS 2017

2. SLIDE | 2
ABOUT PEPSICO
Name PepsiCo Inc.
Logo
Industries served
• Beverage (Pepsi, Mountain Dew, Gatorade, Sierra Mist)
• Food (Quaker Oats, WBD, Rold Gold)
• Snack (Lay’s, Doritos, Cheetos)
Geographic areas served Worldwide (more than 200 countries)
Headquarters Purchase, New York, U.S.
Current CEO Indra Nooyi
Revenue US$63.056 billion (2015) decreased 5.4% over US$66.683 billion (2014)
Profit US$5.452 billion (2015) decreased 16.3% over US$6.516 billion (2014)
Employees 263,000 (2016)
Main Competitors
The Coca-Cola Company, DPSG, Mondelēz International, Monster Beverage Corporation,
Beverage Corporation, Hansen Natural Corporation, National Beverage Corp., Kraft Foods
Corp., Kraft Foods Group, The Kellogg Company, ConAgra Foods, Nestlé S.A., Snyder’s-
S.A., Snyder’s-Lance and other beverage, food and snack companies.

3. PepsiCo business overview from the company’s financial report:
“We are a leading global food and beverage company with a
brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and
Through our operations, authorized bottlers, contract manufacturers
make, market, distribute and sell a wide variety of convenient and
and snacks, serving customers and consumers in more than 200
SLIDE | 3
BUSINESS DESCRIPTION (1/2)
“
”

4. Performance with Purpose is our goal to:
• deliver sustained value by providing a wide range of beverages, foods and snacks, from treats
to healthy eats;
• finding innovative ways to minimize our impact on the environment and lower our costs
through energy and water conservation as well as reduce our use of packaging material;
• providing a safe and inclusive workplace for our employees globally;
• respecting, supporting and investing in the local communities in which we operate.”[1]
SLIDE | 4
BUSINESS DESCRIPTION (2/2)
“ ”

5. SLIDE | 5
STRENGTHS
1. Comprehensive product portfolio with more than 100 brands serving nearly every niche in the beverage,
food and snack industries
S W
O T
PepsiCo sells more than 100
different snack and beverage
brands
0
100
200
300
400
500
600
700
800
PepsiCo Nestlé S.A. Coca-Cola Mondelēz Kraft Foods
Figure 1. Brand portfolio by world’s largest food and beverage companies
Source: The respective companies’ official websites and financial reports [1][2][3][4][5]

6. SLIDE | 6
STRENGTHS
S W
O T
The company owns 22 brands,
which earn at least US$1 billion a
year
22
9
7.5
7.3
6.1
5.65
4.8
4.4
3.5
3.25
3.2
3.05
2.75
2.55
2.1
1.75
1.4
1.4
1.4
1.4
1.1
1.1
0 5 10 15 20 25
Pepsi-Cola
Lay's
Mountain Dew
Gatorade
Tropicana
Diet Pepsi
7UP
Doritos
Quaker Foods
Cheetos
Mirinda
Lipton RTD Teas
Ruffles
Tostitos
Aquafina
Pepsi MAX
Brisk
Sierra Mist
Fritos
Diet Mountain Dew
Starbucks RTD Beverages
Walkers
Figure 2. PepsiCo’s top earning brands (in US$ billions)
Source: PepsiCo financial report 2011 [6]

7. 1. Overdependence on sales to Wal-Mart stores and other retailers
• PepsiCo’s sales to Wal-Mart Stores, Inc. was US$8.2 billion, or 13% of PepsiCo’s
SLIDE | 7
WEAKNESSES
S W
O T
2012 2013 2014 2015
Sales % of total Sales % of total Sales % of total Sales % of total
7.2 billion 11% 7.3 billion 11% 8 billion 12% 8.2 billion 13%
Figure 6. PepsiCo US$ dollar sales to Wal-Mart and the corresponding percentage of total PepsiCo revenue
Source: PepsiCo financial report[1]

8. 1. Growing alcoholic beverage industry
• The alcoholic beverage market has been steadily growing since 2009.
• In 2017, the market is expected to reach a value of US$1.319 trillion.
• PepsiCo could expand into the alcoholic beverages industry by acquiring
brands in a market.
SLIDE | 8
OPPORTUNITIES
S W
O T

9. 1. Concerns over obesity and potentially dangerous substances may reduce
the demand for some of the company’s products
PepsiCo emphasizes this threat in its financial report:
“Our success depends on our ability to anticipate and effectively respond to
including increased demand for products that meet the needs of consumers
and wellness; our ability to develop or acquire new products that are
preferences, including reducing sodium, added sugars and saturated fat”[1]
SLIDE | 9
THREATS
S W
O T
“
”

10. 1. PepsiCo Inc. (2016). Form 10-K for the Fiscal Year Ended December 26, 2015. Available at: http://www.pepsico.com/docs/album/annual-reports/pepsico-2015-annual-
report_final_s57dqszgmy22ggn.pdf?sfvrsn=0 Accessed January 8, 2017
2. Nestlé S.A. (2016). Brands A-Z. Available at: http://www.nestle.com/Brands/BrandsSearchList?char=AAccessed January 8, 2017
3. The Coca-Cola Company (2016). All Brands. Available at: http://www.coca-colacompany.com/brands/all/ Accessed January 8, 2017
4. Mondelēz International (2016). Brand Family. Available at: http://www.mondelezinternational.com/brand-familyAccessed January 8, 2017
5. Kraft Foods Group (2016). Our Brands. Available at: http://www.kraftfoodsgroup.com/brands/index.aspx Accessed January 8, 2017
6. PepsiCo Inc. (2012). Form 10-K for the Fiscal Year Ended December 27, 2011. Available at: http://www.pepsico.com/docs/album/annual-
reports/PEP_AR11_2011_Annual_Report.pdf Accessed January 8, 2017
7. Interbrand (2016). Best Global Brands 2015. Available at: http://bestglobalbrands.com/2015/ranking/ Accessed January 8, 2017
8. Forbes (2016). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed January 8, 2017
9. Culliney, K. (2014). Competing with PepsiCo: How to be a top 10 snack player. Available at: http://www.bakeryandsnacks.com/Manufacturers/Competing-with-PepsiCo-
How-to-be-a-top-10-snack-player Accessed January 8, 2017
10. Nestlé S.A. (2016). Financial Statements 2015. Available at: http://www.nestle.com/asset-library/documents/library/documents/financial_statements/2015-financial-
statements-en.pdf Accessed January 8, 2017
11. Mondelēz International, Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at:
http://ir.mondelezinternational.com/secfiling.cfm?filingID=1193125-16-469394&CIK=1103982 Accessed January 8, 2017
12. The Coca-Cola Company (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: http://www.coca-colacompany.com/investors/investors-info-sec-
filings/ Accessed January 8, 2017
13. Food Business News (2015). PepsiCo taps into health. Available at:
http://www.foodbusinessnews.net/articles/news_home/Business_News/2015/02/PepsiCo_taps_into_health.aspx?ID=%7B11FB2637-01C2-4D56-8901-
94E55510E5F9%7D&cck=1 Accessed January 8, 2017
SLIDE | 10
SOURCES (1/2)

11. 14. Dr Pepper Snapple Group, Inc. (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at: http://investor.drpeppersnapplegroup.com/annual-reportsAccessed January
8, 2017
15. PepsiCo, Inc. (2016). BRIEF HISTORY OF PEPSICO'S BEVERAGES. Available at: https://www.pepsicobeveragefacts.com/home/timeline Accessed January 8, 2017
16. Business Wire (2015). Starbucks and PepsiCo to Accelerate Growth within Latin America’s $4 Billion Ready-to-Drink Coffee and Energy Beverage Categories. Available at:
http://www.businesswire.com/news/home/20150723006542/en/Starbucks-PepsiCo-Accelerate-Growth-Latin-America%E2%80%99s-4#.VfbGWRGqqkp Accessed January 8, 2017
17. Beverage Marketing Corporation (2016). Press Release: The U.S. Liquid Refreshment Beverage Marketing Accelerated in 2015, Reports Beverage Marketing Corporation. Available at:
http://www.beveragemarketing.com/news-detail.asp?id=335 Accessed January 8, 2017
18. MarketLine (2014). Global Alcoholic Drinks Industry Profile. Accessed January 8, 2017
19. Beverage Marketing Corporation (2013). Press Release: The U.S. Liquid Refreshment Beverage Market Grew by 1.0% in 2012, Reports BMC. Available at:
http://www.beveragemarketing.com/news-detail.asp?id=255 Accessed January 8, 2017
20. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Remained Flat in 2013. Available at: http://www.beveragemarketing.com/news-
detail.asp?id=299 Accessed January 8, 2017
21. Beverage Marketing Corporation (2015). Press Release: The U.S. Liquid Refreshment Beverage Marketing Enlarged in 2014, Reports Beverage Marketing Corporation. Available at:
http://www.beveragemarketing.com/news-detail.asp?id=335 Accessed January 8, 2017
22. Beverage Industry (2013). 2013 State of the Industry: Tea & RTD tea. Available at: http://www.bevindustry.com/articles/86554-state-of-the-industry-tea-rtd-tea?v=preview Accessed
January 8, 2017
23. Beverage Industry (2014). 2014 State of the Industry: Tea and RTD tea. Available at: http://www.bevindustry.com/articles/87613-state-of-the-industry-tea-and-rtd-tea?v=preview Accessed
January 8, 2017
24. Beverage Industry (2015). 2015 State of the Beverage Industry: Health and wellness trends drive tea sales. Available at: http://www.bevindustry.com/articles/88566-state-of-the-beverage-
industry-health-and-wellness-trends-drive-tea-sales Accessed January 8, 2017
SLIDE | 11
SOURCES (2/2)

12. SLIDE | 12
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