The PepsiCo stock is just as interesting as the Coca Cola stock
which is its the direct competitor. But as you'll see, the company presents a much more diversified activity. So let's check out the group and its specific features as well as a historical analysis of the PepsiCo stock price on stock charts over the last ten years along with some additional advice.
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.
Knowing PepsiCo shares competition:
The American group PepsiCo is one of the giants of the global food industry. As such, it faces strong competition, in particular from the Swiss group Nestlé , which has been at the top of the ranking for some time. Despite his second place, PepsiCo must also be wary of other competitors such as the British company Unilever which follows close behind, Coca-Cola and Danone who respectively occupy the fifth and sixth place in this ranking.
In the more specific beverage sector, PepsiCo also has very serious competitors. Leader of this activity, here are its main competitors:
- Anheuser Busch InBev: in Belgium.
- Heineken: in the Netherlands.
- Femsa: in Mexico.
- Kirin: in Japan.
- Diageo: in the United Kingdom.
- Asahi Breweries: in Japan.
- Pernod Ricard: in France.
- Carlsberg: in Denmark.
The strategic alliances set up by the PepsiCo group:
- 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.
Introduction and pricing of the PepsiCo share:
The PepsiCo share price is currently listed on the Pan European market of NYSE ARCA Europe and includes the calculation of the SP 100 stock market index.
Historical stock market graphs show us a constant progression of the price of this stock for the past 10 years with hardly any drops in 2009 and 2001.
Stock market data
- In 2017, the total market capitalization of the PepsiCo company reached 167 663.19 MUSD.
- The number of equities issued by PepsiCo and in circulation on the market is around 1,428,501,223.
- 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.
- PepsiCo's shareholding is currently made up of 7.40% of The Vanguard Group shares and 5.90% of the Black Rock investment fund shares. The rest are floating assets and held by private shareholder investors.
Here are some highlights of the economic and financial history of PepsiCo from its creation to the present day.
- In 1965, the Pepsi-Cola Company merged with Frito-Lay, the leading potato chips in the world.
- In 1998, PepsiCo bought Tropicana from the Seagram group.
- In 2001, the group bought Quaker for $ 13.4 billion in shares. This acquisition led to the acquisition of the Gatorade brand.
- In 2005, PepsiCo bought Benenuts from Sara Lee for 130 million euros. The same year, they also tried to buy the Danone group but the French public authorities firmly opposed.
- In 2010, PepsiCo announced the acquisition of the Russian company Wimm Bill Damn for 5.4 billion dollars, which produces fruit juices and dairy products.
- In 2016, PepsiCo announced the purchase of Ke Vita, an American probiotic drink company.
- In 2017, PepsiCo launched a range of fruit soups and desserts to launch into healthier products, distinguishing itself from its competitor The Coca Cola Company.
PepsiCo benefits and strengths as a stock market asset:
- 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.
Disadvantages and weak points of PepsiCo shares as a stock market asset:
- 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.