PEPSICO

Analysis of PepsiCo share price

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Elements that can influence the price of this asset:

Analysis N°1

The development of activities and the increased infiltration of PepsiCo in certain developing or emerging countries.

Analysis N°2

Not only the pursuit of diversification of the group's product portfolio through buyouts of various brands. But also the diversification of the group's activities, particularly with regard to Yum! still with limited presence in certain countries and geographic areas with high potential.

Analysis N°3

Pursuing CSR activities for the benefit of the population making it possible to further improve PepsiCo’s brand image.

Analysis N°4

The evolution of consumer behaviour when faced with health issues often linked to the consumption of sweet and soft drinks along with snacks.

Analysis N°5

Regulations and standards put in place by the governments of countries in which PepsiCo markets its products.

Analysis N°6

The economic downturn and inflation which can lead to a drop in consumer purchasing power and a drop in sales.

Analysis N°7

Finally, it's important to carefully monitor the competition in all segments.

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General presentation of PepsiCo

The PepsiCo group is currently one of the world leaders in soft drink and snacks manufacturing. But its activity is much more diverse than it seems. While most of its turnover is made in North America 57% in sales of drinks and snacks, the company also reaches the international market at almost 30% with the same products and by marketing them under different brands.

Finally, Latin America represents 12.7% of its turnover, particularly with the Doritos and Cheetos brands.

The PepsiCo stock price is currently listed on the Main NYSE in the United States. PepsiCo is also contributes to the American ESS stock market index and is therefore one of the largest companies with powerful capitalization.

Analysis of PepsiCo share price
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The major competitors of PepsiCo

We now propose to tell you a little more about the environment in which the PepsiCo group is evolving through a quick presentation of its main competitors on the market.

Coca Cola

First of all, the Coca-Cola group is of course PepsiCo's most direct competitor. It is an American company specialising in soft drinks and is one of the leaders in this market in the United States and in the world. Based in Atlanta, Georgia, the company was originally known specifically for its famous drink of the same name but owns and operates many other leading food brands.

Nestlé

The Swiss multinational Nestlé is also a leader in the global food industry and the largest company in the sector in terms of turnover. Its activities are mainly focused on the processing and marketing of a wide range of food and feed products and beverages. Nestlé is also a listed company on the SIX Swiss Exchange.

Unilever

Unilever is a Dutch-British multinational company based in both the Netherlands and the United Kingdom, with operations in approximately 100 countries. It markets a wide variety of beverage, ice cream, food, personal care and home care brands and employs over 169,000 people.

Danone

The last serious competitor to PepsiCo is the French group Danone, which is also listed on the Euronext Paris market and is part of the CAC 40 stock market index. Currently, this group, which was formed by the merger of Gervais Danone and Boussois-Souchon-Neuvesel, is the leader in the food sector in France and number three in Europe.


The major partners of PepsiCo

Nestlé

PepsiCo became partners with Nestlé in 2001 to create the joint venture Beverage Partners Worldwide, specializing in iced teas to be marketed under the Nestea brand. This joint venture was dissolved in 2017 and is expected to become independent in 2018.

Motorola

In 2006, the PepsiCo and the Motorola group joined forces to provide access to 150 original songs and ringtones by award-winning artists to users of their terminals and United States Pepsi consumers.

Unilever

On another note, in 2016 the Unilever group and PepsiCo renewed their long-standing partnership and decided to extend their joint venture in the sale of the Lipton brand iced tea in North America in order to develop the market in Europe and Asia.

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The factors in favour of a rise in the PepsiCo share price:
  • First of all, the PepsiCo group benefits from a very strong brand image since the Pepsi brand is known worldwide and is one of the most popular in the beverage sector, which facilitates sales and communication.
  • PepsiCo can also base its success on the great diversity of its product portfolio, which is not limited to the famous soft drink of the same name but reaches many other segments. They also possess various popular brands around the world including Frito Lay, Gatorade, Pepsi, Quaker, Tropicana and Yum.
  • Another of PepsiCo’s strengths is the quality of its international expansion strategy since the group now markets its products worldwide and is present in over 200 countries. It employs no less than 300,000 people in this capacity.
  • Another PepsiCo strong point which also contributes to its brand image is the PepsiCo foundation which acts in the fields of education, health and even water conservation.  There are also other projects launched by PepsiCo such as the Pepsi Refresh Project which aims to finance new ideas and companies that may be beneficial to society.
  • Another advantage of PepsiCo is the group's supply chain which is both powerful and efficient ensuring that it can guarantee the availability of its products all over the world, even in the most remote and secluded places of its production centres.
  • Another undeniable feature of the PepsiCo group involves its brand strategy and the quality of its advertising and communication by various media along with sponsorships for world cultural or sporting events.
The factors in favour of a drop in the PepsiCo share price:
  • First of all, the competition of this group's activity sector is very strong, particularly regarding the soft drink segment with intense pressure exerted by Coca-Cola. This competition leads to significant brand commutation.
  • Finally, certain scandals and even certain lawsuits which have targeted products from the PepsiCo group in the past have made the headlines and have largely contributed to making this brand less attractive to consumers.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

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