PepsiCo – Focus on efficiency gains
After a weaker few years, PepsiCo, Inc. (Pepsi) returned to growth with a new beverage offering and a robust development in the snack food business. In the context of the pandemic, Pepsi held its own very well, especially since sales in the beverage business are currently continuing to recover due to the normalization of the catering trade. A strong balance sheet, the relatively crisis-resistant business model and the prospect of growth in the international area speak for further price gains for the share despite the ambitious valuation.
Balanced business areas, stronger focus on the defensive snack business
Pepsi sells a wide range of carbonated and non-carbonated beverages, as well as an extensive line of Frito-Lay and Quaker-Oats branded snack foods. Overall, the breakdown of sales is very balanced, which means that the beverages share is steadily declining slightly at around 46 percent, while the more defensive snack business is increasingly accounting for a slightly higher share of sales (54 percent). Pepsi is well diversified and has a strong competitive positioning with over 23 brands, each with sales well over $1 billion.