Pepsico : The Food And Drink Industry

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You’ll either love them or hate them, PepsiCo has grown over the years with different brands becoming a dominate company is the food and drink industry. In recent years they have been getting a bad reputation due to their unhealthy drinks and foods. In a 20 ounce bottle of Pepsi, there is 13.8 teaspoons of sugar. “Two out of three adults and one of three children in the United States are overweight or obese.” Studies have shown that the number of health problems that are related to obesity is due to the increased consumption of sugary drinks. High sugar drinks are being compared to cigarettes, along with fast food restaurants that are high in fat. I will discuss how PepsiCo became a leader in the beverage industry by looking into…show more content…
From the 1980s to the 90s PepsiCo had brought on many different brands such has popular Mug Root Beer, and 7-Up. PepsiCo was involved in other countries such has the United Kingdom with Walker’s Crisps, and in Mexico with cookie company Gamesa. Ready to drink teas from Lipton were brought on in 1993 along with other bottled products like Aquafina water in 1994. Their largest acquisition was Quaker Oats in 2001 for $13.9 billion. This acquisition brought many categories such as oatmeal and snack bars, but the brand that made it worth the high cost was Gatorade. In recent years they have bought a leading Russian food and beverage company for $3.8 billion. PepsiCo’s strategy of having a diverse group of brands from snack foods to high in sugar drinks have allowed them to grow with these close relationships.
When looking at the value chain of PepsiCo, one of PepsiCo’s strongest aspects is their distribution. They can deliver products to their customers in many different ways. Direct store delivery (DSD), customer warehouses, and third-party distributor networks. PepsiCo has the ability to satisfy their customers with plenty of options when it comes to getting the product to the store shelves. By having a DSD system, PepsiCo has its drivers bring product to the stores and see what is selling and what is not. This is an effective method if the products are needed to be restocked for events like the Super
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