PepsiCo Inc. (PEP) is a leading food and beverage company that manufactures and distributes its products in more than 200 countries. Food products that PepsiCo manufactures include chips, flavored snacks, cereals, rice, pasta, and dairy-based products. The company’s beverage product portfolio includes carbonated soft drinks, juices, ready-to-drink tea and coffee, sports drinks, and bottled water. Headquartered in Purchase, New York, the company employs around 274,000 people worldwide.
According to Information Resources, Inc. (or IRI), a market research company, PepsiCo owns nine of the 40 largest packaged goods trademarks in the United States. The company owns several brands, and 22 of them, including Pepsi, Lays, and …show more content…
Food and beverage companies like PepsiCo are part of the consumer staples sector. You can invest in this sector through exchange traded funds (or ETFs) such as the Consumer Staples Select Sector Standard & Poors depositary receipt (or SPDR) Fund (XLP). PepsiCo is also part of other ETFs such as the SPDR S&P 500 ETF (SPY) and the Vanguard Dividend Appreciation ETF (VIG)
Three distribution channels
PepsiCo Inc. (PEP) is a leading food and beverage company with an impressive global presence. The company’s products reach the market through the following three channels: direct store delivery (or DSD), customer warehouse, and third-party distributor networks. PepsiCo chooses the relevant distribution channel based on customer needs, product characteristics, and local trade practices.
Direct store delivery
Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more suitable for products that are restocked often and are sensitive to promotions and marketing.
The customer warehouse system is a less expensive distribution channel. It’s ideal for products that are less fragile and perishable, have lower turnover, and are not purchased impulsively.
Third-party distributor networks
PepsiCo distributes food and beverage products to restaurants, businesses, schools,