PepsiCo swot analysis 2018 reveals company's internal strengths and weaknesses as well as external opportunities and threats.

1. PEPSICO SWOT
ANALYSIS 2018

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$) 63.525 billion (2017) 1.2% 62.799 billion (2016)
Profit (US$) 4.857 billion (2017) 30.3% 6.329 billion (2016)
Employees 263,000 (2017)
Main Competitors
The Coca-Cola Company, DPSG, Mondelēz International, Monster
Beverage Corporation, Hansen Natural Corporation, National Beverage
Corp., Kraft Foods Group, The Kellogg Company, ConAgra Foods, Nestlé
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 complementary
portfolio of enjoyable brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker
and Tropicana.
Through our operations, authorized bottlers, contract manufacturers and other
third parties, we make, market, distribute and sell a wide variety of convenient
and enjoyable beverages, foods and snacks, serving customers and consumers
in more than 200 countries and territories.
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.”
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 99
different snack and
beverage brands
Brand portfolios by world’s largest food and beverage companies
99
82
22
51
26
PepsiCo Nestlé S.A. Coca-Cola Mondelēz Kraft Heinz

6. SLIDE | 6
STRENGTHS
S W
O T
The company
owns 22 brands,
which earn at
least US$1 billion
a year

7. 1. Overdependence on sales to Walmart stores and other retailers
SLIDE | 7
WEAKNESSES
S W
O T
PepsiCo US$ dollar sales to Walmart and the corresponding percentage of total PepsiCo revenue
2013 2014 2015 2016 2017
Sales 7.3 billion 8 billion 8.2 billion 8.2 billion 8.3 billion
% of total 11% 12% 13% 13% 13%

8. 1. Growing tequila market with many smaller brands that can be easily acquired
• PepsiCo operates only in a non-alcoholic beverage market, which at the moment is
growing slowly.
• Currently, one of the fastest growing alcohol industry’s segment is tequila.
• Tequila sales grew by 9.9% in 2017 to US$2.7 billion.
• There are many smaller brands in the market that could be acquired easily.
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:
“Demand for our products depends in part on our ability to anticipate and effectively
respond to shifts in consumer trends and preferences, including increased demand for
products that meet the needs of consumers who are concerned with health and
wellness (including products that have less sodium, added sugars and saturated fat).”
SLIDE | 9
THREATS
S W
O T
“ ”

10. SLIDE | 10
GET THE FULL
PRESENTATION
BUY PEPSICO INC.
SWOT 2018

11. 1. PepsiCo Inc. (2018). 2017 Annual Report. Available at: http://www.pepsico.com/docs/album/investor/pepsico-inc-2017-annual-report.pdf
Accessed May 1, 2018
2. Nestlé S.A. (2018). Brands A-Z. Available at: http://www.nestle.com/Brands/BrandsSearchList?char=AAccessed May 1, 2018
3. The Coca-Cola Company (2018). All Brands. Available at: http://www.coca-colacompany.com/brands/product-description Accessed May 1,
2018
4. Mondelēz International (2018). Brand Family. Available at: http://www.mondelezinternational.com/brand-family Accessed May 1, 2018
5. The Kraft Heinz Company. (2018). Our Brands. Available at: http://www.kraftheinzcompany.com/brands.html Accessed May 1, 2018
6. PepsiCo Inc. (2018). Top Global Brands. Available at: http://www.pepsico.com/Brands/BrandExplorer#top-global-brands Accessed May 1,
2018
7. Interbrand (2018). Best Global Brands 2017. Available at: http://interbrand.com/best-brands/best-global-brands/2017/ranking/ Accessed May
1, 2018
8. Forbes (2018). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed May 1, 2018
9. Hyslop, G. (2017). Top 10 US salty snack brands in 2017 so far: Sales soar for Frito-Lay’s Ruffles brand. Available at:
https://www.bakeryandsnacks.com/Article/2017/07/13/Top-10-US-snack-brands-Sales-soar-for-Frito-Lay-s-Ruffles-brand Accessed May 1,
2018
10. Nestlé S.A. (2018). Financial Statements 2017. Available at: https://www.nestle.com/asset-
library/documents/library/documents/financial_statements/2017-financial-statements-en.pdf Accessed May 1, 2018
11. Mondelēz International, Inc. (2018). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at: https://www.nestle.com/asset-
library/documents/library/documents/financial_statements/2017-financial-statements-en.pdf Accessed May 1, 2018
12. The Coca-Cola Company (2018). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at: https://www.coca-
colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2018/2017-10K.pdf Accessed May 1, 2018
13. PepsiCo (2018). New Products. Available at: http://www.pepsico.com/live/content/topic/New-Products Accessed May 1, 2018
14. Dr Pepper Snapple Group, Inc. (2018). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at:
http://investor.drpeppersnapplegroup.com/sec-filings?s=127&year=&cat=1 Accessed May 1, 2018
SLIDE | 11
SOURCES (1/3)

12. 15. PepsiCo (2017). A Winning 2016: Awards and Accolades. Available at: http://www.pepsico.com/live/story/a-winning-2016-awards-and-accolades Accessed
May 1, 2018
16. PepsiCo, Inc. (2018). Brief History of PepsiCo’s Beverages. Available at: https://www.pepsicobeveragefacts.com/home/timeline Accessed May 1, 2018
17. Starbucks (2018). Fact Sheet: Starbucks and PepsiCo Partnership. Available at: https://news.starbucks.com/facts/fact-sheet-starbucks-and-pepsico-
partnership Accessed May 1, 2018
18. Beverage Marketing Corporation (2017). Press Release: The U.S. Liquid Refreshment Beverage Market Accelerated Again in 2016. Available at:
http://www.beveragemarketing.com/news-detail.asp?id=439 Accessed May 1, 2018
19. Beverage Industry (2017). 2017 State of the Industry: Steady growth in wine, spirits. Available at: http://www.bevindustry.com/articles/90355-state-of-the-
industry-steady-growth-in-wine-spirits Accessed May 1, 2018
20. Hopkins, A. (2018). ‘Banner year’ for US spirits sales in 2017. Available at: https://www.thespiritsbusiness.com/2018/02/banner-year-for-us-spirits-sales-
in-2017/ Accessed May 1, 2018
21. Business Wire (2017). Global Tequila Market to Witness Growth Through 2021, Owing to the Introduction of New Flavors: Technavio. Available at:
http://www.businesswire.com/news/home/20170309005955/en/Global-Tequila-Market-Witness-Growth-2021-Owing Accessed May 1, 2018
22. Statista (2018). Leading brands of tequila in the United States in 2016, based on volume sales (in 1,000 9 liter cases). Available at:
https://www.statista.com/statistics/463995/us-leading-brands-of-tequila-volume-sales/ Accessed May 1, 2018
23. 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 May 1, 2018
24. 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 May 1, 2018
25. Beverage Marketing Corporation (2016). Press Release: The U.S. Liquid Refreshment Beverage Market Accelerated in 2015, Reports Beverage
Marketing Corporation. Available at: http://www.beveragemarketing.com/news-detail.asp?id=382 Accessed May 1, 2018
SLIDE | 12
SOURCES (2/3)

13. 26. Beverage Marketing Corporation (2017). Press Release: Bottled Water Becomes Number-One Beverage in the U.S. Available at:
http://www.beveragemarketing.com/news-detail.asp?id=438 Accessed May 1, 2018
27. Beverage Industry (2017). Strong growth predicted for coconut water, other plant waters. Available at: http://www.bevindustry.com/articles/90346-strong-
growth-predicted-for-coconut-water-other-plant-waters Accessed May 1, 2018
28. FoodBev (2017). Global coconut water market forecast for growth of over 25%. Available at: http://www.foodbev.com/news/global-coconut-water-market-
forecast-for-growth-of-over-25/ Accessed May 1, 2018
29. PepsiCo (2018). About O.N.E. Coconut Water. Available at: https://cu.pepsico.com/one/one-company-info Accessed May 1, 2018
30. Douglas, Y. (2017). Savory snacks market in China expected to reach US$16.6 billion 2021, Euromonitor. Available at:
http://www.bakeryandsnacks.com/Markets/Savory-snacks-in-China-expected-to-reach-16.6bn-by-2021-Euromonitor Accessed May 1, 2018
31. Bird, B. (2018). What Is the Soda Tax and Which Cities Have One? Available at: https://www.thebalance.com/soda-tax-and-which-cities-have-one-
4151209 Accessed May 1, 2018
32. American Public Health Association (2016). Impact of the Berkeley Excise Tax on Sugar-Sweetened Beverage Consumption. Available at:
http://ajph.aphapublications.org/doi/abs/10.2105/AJPH.2016.303362 Accessed May 1, 2018
33. Lee, B. Y. (2017). In Berkeley, Soda Tax Is Doing What It's Supposed To Do. Available at: https://www.forbes.com/sites/brucelee/2017/04/18/in-berkeley-
soda-tax-is-doing-what-its-supposed-to-do/#1f771da2cae7 Accessed May 1, 2018
SLIDE | 13
SOURCES (3/3)