source: seekingalpha.com

PepsiCo, Inc. operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay’s and Ruffles potato chips; Doritos, Tostitos, and Santitas tortilla chips; and Cheetos cheese-flavored snacks, branded dips, and Fritos corn chips. The company’s Quaker Foods North America segment provides Quaker oatmeal, grits, rice cakes, granola, and oat squares; and Aunt Jemima mixes and syrups, Quaker Chewy granola bars, Cap’n Crunch cereal, Life cereal, and Rice-A-Roni side dishes.

Its North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under the Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Diet Mountain Dew, Tropicana Pure Premium, Mist Twst, and Mug brands; and ready-to-drink tea and coffee, and juices. The company’s Latin America segment provides snack foods under the Doritos, Cheetos, Marias Gamesa, Ruffles, Emperador, Saladitas, Sabritas, Lay’s, Rosquinhas Mabel, and Tostitos brands; cereals and snacks under the Quaker brand; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, 7UP, Gatorade, Toddy, Mirinda, Manzanita Sol, H2oh!, and Diet Pepsi brands.

Its Europe Sub-Saharan Africa segment offers snack foods under the Lay’s, Walkers, Doritos, Cheetos, and Ruffles brands; cereals and snacks under the Quaker brand; beverage concentrates, fountain syrups, and finished goods under the Pepsi, 7UP, Pepsi Max, Mirinda, Diet Pepsi, and Tropicana brands; ready-to-drink tea products; and dairy products under the Chudo, Agusha, and Domik v Derevne brands.

The company’s Asia, Middle East and North Africa segment provides snack foods under the Lay’s, Kurkure, Chipsy, Doritos, Cheetos, and Crunchy brands; cereals and snacks under the Quaker brand; beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, 7UP, Mountain Dew, Aquafina, and Tropicana brands; and tea products. The company was founded in 1898 and is headquartered in Purchase, New York.

source: twitter.com

BUSINESS ANALYSIS OF PEPSICO

The Consumer Goods Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses.

Faced with this uncertainty, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking.

In this report, we share the snapshot of how PepsiCo compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by PepsiCo to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of PepsiCo with an interactive chart.

  1. Revenue Growth: PepsiCo reported a revenue growth of -0.4% year-on-year during 2016. Beverages Industry grew at 1.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, PepsiCo spent 44.9% of its total revenues on COGS. Beverages industry average (COGS share of revenue) in the same period was 48.6%
  3. R&D; share of Revenues: PepsiCo R&D; share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A; share of Revenues: As a percentage of revenue, PepsiCo spent 39.4% of its total revenues on Sales, Marketing, and General Administration (SG&A;). Beverages industry average SG&A; spending in the same period was 32.0%
  5. Inventory share of Revenues: As a percentage of revenue, PepsiCo spent 4.3% of its total revenues on Inventories. Beverages industry average Inventory spending in the same period was 7.1%
  6. Accounts Payable share of Revenues: As a percentage of revenue, PepsiCo invested 22.7% of its total revenues on Accounts Payable (A/P) Beverages industry average Accounts Payable investment in the same period was 18.4%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, PepsiCo invested 10.7% of its total revenues on Accounts Receivable (A/R). Beverages industry average Accounts Receivable investment in the same period was 9.7%
  8. PP&E; share of Revenues: As a percentage of revenue, PepsiCo invested 26.4% of its total revenues on Property, Plants, and Equipments (PP&E;). Beverages industry average PPE investment in the same period was 27.6%
  9. Intangibles share of Revenues: As a percentage of revenue, PepsiCo invested 44.4% of its total revenues on Intangibles. Beverages industry average Intangibles investment in the same period was 60.4%
  10. Net Margins: PepsiCo Net Margins in the year 2016 were 10.1%. Beverages industry average Net Margins in the same period were 13.5%
source: marketingland.com

SECTOR AND INDUSTRY ASSOCIATION OF PEPSICO

For the purpose of performance benchmarking of a company with a sector or industry average, R&P; Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

PepsiCo is associated with Consumer Goods Sector and Beverages Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies – manufacturers of cider or malt products; Distillers and Vintners Companies; and Soft Drinks Companies – manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies – manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies – manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies – makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies – companies that grow crops or raise livestock; Food Products Companies – food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products – Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products – Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings – Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction – constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.
source: selectusa.gov

INDUSTRY RANKING OF PEPSICO

With $62.8 billion revenues, PepsiCo ranked number 1 of all the companies in the US Beverages industry. There were a total of 18 public companies in the US Beverages industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Beverages industry by revenues during 2016 were:

  1. PepsiCo ($62.8 billion)
  2. Coca-Cola ($41.9 billion)
  3. Starbucks ($21.3 billion)
  4. Constellation Brands ($6.5 billion)
  5. Dr Pepper Snapple Group ($6.4 billion)
  6. Molson Coors Brewing ($4.9 billion)
  7. Brown-Forman Corp ($4 billion)
  8. Cott ($3.2 billion)
  9. Coca Cola Bottling ($3.2 billion)
  10. Monster Beverage ($3 billion)

BUSINESS MODEL ANALYSIS (BMA) FRAMEWORK

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

NEXT STEPS

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of PepsiCoand its peers on select key performance indicators by clicking the reports provided below

INDUSTRY PEERS AND COMPETITORS OF PEPSICO

Coca-Cola (KO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…

Coca Cola Co with $42 billion revenues in the year 2016 was the number 2 Beverages company. Read this report to know the top competitors of Coca-Cola and identify growth and cost optimization opportunities of Coca-Cola

Starbucks (SBUX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…

Starbucks Corp with $21 billion revenues in the year 2016 was the number 3 Beverages company. Read this report to know the top competitors of Starbucks and identify growth and cost optimization opportunities of Starbucks

Constellation Brands (STZ) Business Analysis – Analyze Historical Performance, Strategic Priorities,…

Constellation Brands, Inc. with $7 billion revenues in the year 2016 was the number 4 Beverages company. Read this report to know the top competitors of Constellation Brands and identify growth and cost optimization opportunities of Constellation Brands

Dr Pepper Snapple Group (DPS) Business Analysis – Analyze Historical Performance,…

Dr Pepper Snapple Group, Inc. with $6 billion revenues in the year 2016 was the number 5 Beverages company. Read this report to know the top competitors of Dr Pepper Snapple Group and identify growth and cost optimization opportunities of Dr Pepper Snapple Group

Molson Coors Brewing (TAP) Business Analysis – Analyze Historical Performance, Strategic…

Molson Coors Brewing Co with $5 billion revenues in the year 2016 was the number 6 Beverages company. Read this report to know the top competitors of Molson Coors Brewing and identify growth and cost optimization opportunities of Molson Coors Brewing

Brown-Forman Corp (BFB) Business Analysis – Analyze Historical Performance, Strategic Priorities,…

Brown-Forman Corp with $4 billion revenues in the year 2016 was the number 7 Beverages company. Read this report to know the top competitors of Brown-Forman Corp and identify growth and cost optimization opportunities of Brown-Forman Corp

REVENUES ANALYSIS

PepsiCo (PEP) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. PepsiCo reported a revenue growth of -0.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

PepsiCo (PEP) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of PepsiCo Inc (PEP) from 2002 to 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. PepsiCo reported a revenue growth of -0.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

PepsiCo (PEP) Revenue Growth Comparison With Industry Growth From 2012 To…

This report provides a comparison of PepsiCo Inc (PEP) revenue growth with Beverages industry growth during the last five years from 2012 to 2016. PepsiCo reported a revenue growth of -0.4% year-over-year during 2016. The Beverages industry growth was 1.8% year-over-year during 2016. PepsiCo growth was slower than the industry during 2016.

PROFIT ANALYSIS

PepsiCo (PEP) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo reported a total net income of $6.3 billion during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. PepsiCo net profit margin was 10.1% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

PepsiCo (PEP) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of PepsiCo Inc (PEP) from 2002 to 2016. PepsiCo reported a total net income of $6.3 billion during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. PepsiCo net profit margin was 10.1% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

PepsiCo (PEP) Net Profit Margin Comparison With Industry From 2012 To…

This report provides a comparison of PepsiCo Inc (PEP) net profit margin with Beverages industry net profit margin during the last five years from 2012 to 2016. PepsiCo reported a net profit margin of 10.1% during 2016. The Beverages industry net profit margin was 13.5% during 2016. PepsiCo was less profitable than the industry during 2016.

COST & EXPENSES ANALYSIS

PepsiCo (PEP) Cost of Sales (COGS) Analysis From 2012 To 2016

This report provides the last five years cost of sales (COGS) analysis of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo spent a total of $28.2 billion on COGS during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. As a percentage of revenues, PepsiCo spent 44.9% of its total revenues on COGS during 2016. The cost of sales (COGS) numbers are for the fiscal year ending in December.

PepsiCo (PEP) Research & Development (R&D) Spending Analysis 2016

R&D; spending analysis for PepsiCo is not available because either the company does not provide the data or we don’t have it.

PepsiCo (PEP) Sales, Marketing, General & Administrative (SG&A) Spending Analysis From…

This report provides the last five years sales, marketing, general & administrative (SG&A;) expenses of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo spent a total of $24.7 billion on sales, marketing, general, and administrative (SG&A;) activities during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. As a percentage of revenues, PepsiCo spent 39.4% of its total revenues on SG&A; activities during 2016. The SG&A; spending numbers are for the fiscal year ending in December.

WORKING CAPITAL ANALYSIS

PepsiCo (PEP) Inventory Spending Analysis From 2012 To 2016

This report provides the last five years inventory spending analysis of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo invested a total of $2.7 billion on inventories during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. As a percentage of revenues, PepsiCo invested 4.3% of its total revenues on inventories during 2016. The inventory numbers are for the fiscal year ending in December.

PepsiCo (PEP) Accounts Receivable (A/R) Analysis From 2012 To 2016

This report provides the last five years Accounts Receivable (A/R) analysis of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo invested a total of $6.7 billion on accounts receivable during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. As a percentage of revenues, PepsiCo invested 10.7% of its total revenues on accounts receivable during 2016. The accounts receivable numbers are for the fiscal year ending in December.

PepsiCo (PEP) Accounts Payable (A/P) Analysis From 2012 To 2016

This report provides the last five years Accounts Payable (A/P) analysis of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo invested a total of $14.2 billion on accounts payable during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. As a percentage of revenues, PepsiCo invested 22.7% of its total revenues on accounts payable activities during 2016. The accounts payable numbers are for the fiscal year ending in December.

ASSET MANAGEMENT ANALYSIS

PepsiCo (PEP) Property, Plant & Equipment (PP&E) Investment Analysis From 2012…

This report provides the last five years property, plant & equipment (PP&E;) investment analysis of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo invested a total of $16.6 billion on property, plant & equipment (PP&E;) activities during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. As a percentage of revenues, PepsiCo invested 26.4% of its total revenues on PP&E; activities during 2016. The PP&E; investment numbers are for the fiscal year ending in December.

PepsiCo (PEP) Intangible Assets Analysis From 2012 To 2016

This report provides the last five years Intangible assets analysis of PepsiCo Inc (PEP) from 2012 to 2016. PepsiCo invested a total of $27.9 billion on Intangible assets during 2016. PepsiCo generated a total of $62.8 billion revenues during 2016. As a percentage of revenues, PepsiCo invested 44.4% of its total revenues on intangible assets during 2016. The Intangible asset numbers are for the fiscal year ending in December.

Related Posts:

RELATED ARTICLESMORE FROM AUTHOR