PepsiCo Inc. is one of the American Beverage and Food Corporation whose headquarters are in Purchase, New York. It is one of the large competitors in the beverage industry apart from being a multinational company. Its interests are in manufacturing, distribution and the marketing of snack foods and beverages among other products (Pederson 56). The company begun in 1965. Its product mix consisted of 37 percent beverages and 63 percent foods by 2012. Its brands have brought about profits from yearly retail sales in the amount of $108 billion. The main brands in the beverage and food industry achieve sales exceeding $1 billion every year. 21 products originating from PepsiCo have attained that level. They include Lay’s, Pepsi, Cheetos, Gatorade, Fritos, Tropicana, Aquafina, and 7 Up. There are also Tostitos, Sierra Mist, Quaker Foods, Mountain Dew, Miranda, Ruffles, Pepsi Max, Doritos, and Walkers.
PepsiCo has always been dedicated to producing the highest-quality, safest, and best-tasting beverages and foods in all the parts of the world. Developing and maintaining the robust food safety programs with great responsibility is how the company assures safety for every package, every day and in every market. PepsiCo has detailed internal procedures and programs for food safety.
The distribution channel that PepsiCo uses is very prevalent among top beverage companies. The channel is through use of licensed bottlers and several restaurant chains in most of the consumer countries. There exists a very strong business transactional distribution channel in the soft drinks industry where about 22.6% of the soft drinks in the Pepsi Company get sold in the form of a syrup for the fountain soda.
While PepsiCo Beverages in North America does not sell directly to consumers primarily, the proposal subject leads to the stimulation of demand for the product at all the end user levels in the market. Consequently, this result in more business to business opportunities to make sales in order to meet that demand.
The company’s product prices are considered the best and has recently brought about stiff competition due to a shift in consumer taste in preference to the PepsiCo favorable prices (Capparell 92). The company’s effective net pricing reflects the year-over-year impact of discrete pricing actions, mix, and sales incentive activities resulting from selling varying products in different package sizes and various countries.
Works Cited
Pederson, Jay. International directory of company histories. Volume 93
Detroit, Mich.: St. James Press, 2008. Print.
Capparell, Stephanie. The Real Pepsi Challenge: How one pioneering company broke color barriers in 1940s American business. New York: Free Press, 2008. Print.
