...Paulo Nazario, Onur Saka and Juliette Clark International Business Policies and Strategies, Winter Quarter 2011 11/29/11 CASE 11: PepsiCo’s Diversification Strategy in 2008 Page 1 1. BACKGROUND INFORMATION Time Country(s) Involved Key Individuals & frame MileStones Titles 1965- Headquarters in Indra Krishnamurthy 2008 Purchase, New York, Nooyi, Chairman of USA. Operations the Board and CEO (2006-). global in scope. Steven Reinemund (CEO 2001-2006). Roger Enrico (CEO 1996-2001). Donald Kendall and Herman Lay, Founders. Company Type & Size PepsiCo is a publicly traded company, listed on the NYSE, NASDAQ, and as a component of the S&P 500. In 2010 it had 294,000 employees worldwide. As of November 2011, it had a market cap of $101.02 billion. 1965 Merger with Frito-Lay CEO of Pepsi Cola, and engineer of PEPSICO Merger, Donald Kendal Diversification outside snacks and beverages Acquisition of Pizza Hut, Taco Bell, KFC Acquisition of 7UP, Mug Root Beer, SunChips, Introduction of Aquafina - 1993 Portfolio Reconstruction Roger Enrico, CEO (1996-2001) Wayne Colloway, CEO (1986-1996) "Potato chips make you thirsty; Pepsi satisfies thirst." Donald Kendall on merger. 1970s 1980s ‘Balanced three leg stool’ describes Wayne Colloway, however, strategic fit problems occurs 1990s Bottled water business starts. 1997 Due to several strategic fit problems, restaurant businesses have been spun off to form Tricon, later Yum! Brands. FTC’s bans to jointly distribute Gatorade with Pepsi...
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...trends in the food industry, some observations become clear: the population wants food that is natural and free of artificial ingredients, not only for their children but also themselves, and most importantly they want it while they are on the go. Researchers at the SIAL conference in 2009 concluded that manufacturers are constantly finding innovative ways to include natural, healthy ingredients in their products, with “all-natural” foods becoming a major consumer demand. But is this costly, natural approach impacting consumer-purchasing habits? NERAC Research Firm states that even with economic struggles, “consumers still want a convenient, quick, fresh, healthy, tasty and sophisticated food experience” (Nerac). Interestingly enough, consumers will spend the buck for a healthier eating experience, allowing manufacturers to gain more capital in exchange for fewer ingredients used. In addition, it is apparent that manufacturers are taking advantage of the consumer habit of eating away from home. According to retail-merchandiser.com, consumers are more interested in snacking to get their daily nutrition, and eating fewer full meals. To achieve this on-the-go lifestyle, parents are turning to convenient food pouches. Neil Grimmer, a pioneer of food pouches for toddlers, calls it “mobile food technology for the modern family” (Richtel). This ‘modern family,’ as Grimmer calls it, has easily adapted to the new packaging, as Gerber’s sales of their new pouched baby food has increased...
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...Johnson Foundation Commission to Build a Healthier America Wilder Research Wilder Research Wilder Research Report prepared for the RWJF Commission to Build a Healthier America by Paul W. Mattessich, Ph.D. Wilder Research Saint Paul, Minnesota Ela J. Rausch, M.P . .P Federal Reserve Bank of Minneapolis Minneapolis, Minnesota With support from the Robert Wood Johnson Foundation June 2013 Creating Healthy Communities Cross-sector partnerships are sparking widespread action to improve community health COATESVILLE , PA SEATTLE, WA Access to healthy foods Access to preventative care and healthy housing LOS ANGELES , CA Quality early child care and education CHICAGO, IL Data and evidence to build health into all policies and practices MIAMI , FL Opportunities for physical activity and healthy living health community development • community development finance • community planning • early child care/education • human services • housing Introduction “ Building a healthier America is feasible in years, not decades, if we collaborate and act on what is making a difference.” —Robert Wood Johnson Foundation In 2008, the Robert Wood Johnson Foundation convened a commission of nonpartisan leaders to identify opportunities to improve the health of all Americans by creating environments that protect and actively promote health. Their report, Beyond Health Care: New Directions to a Healthier America, included 10 recommendations for improving the...
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...beverages. Acquisition of bottlers will allow for cost savings and new business opportunities Opportunities for growth in healthy snack, and healthy drink markets; growth in emerging markets Commodity (raw materials) volatility, exchange rate risks Increased bad debt and higher interest rates No high prospects for growth Cons: Porter’s Five Forces: • • • • • Threat of Competition: Moderate Threat of New Entrants: Low Threat of Substitutes: Low to Moderate Power of Suppliers: Moderate Power of Buyers: High Brief Overview PepsiCo, Inc. operates four major businesses: Frito-Lay North America, 31% of sales; Quaker Foods NA, 4%; Latin American Foods, 13% of total revenue, PepsiCo America Beverages, 23% of revenue, Europe, 16% of total revenue, AMEA 13%. PepsiCo recently purchased two of its largest bottling companies for a combined total of $12.6 Billion.1 1 10K 2010 PORTFOLIO CONSIDERATIONS PepsiCo, a consumer staple equity, currently composes 3.39% of the equity value of the EIF portfolio. As a whole, consumer staples make up 11.00% of the equity portfolio of the EIF. 11% does meet our required consumer staples portfolio. The S&P’s consumer staple has a total weight of 11.5%. Industry Overview PepsiCo falls under the consumer staples sector. In the sub-sector of consumer staples, PepsiCo competes in the non-alcoholic beverages and salty-snack food market. PepsiCo has the world’s...
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...role in a healthy balanced diet and it is continually finding ways to ensure McCain products are as healthy as possible. McCain Foods Limited is an international leader in the frozen food industry, employing 19,000 people and operating 50 production facilities on six continents. A privately owned Canadian company, McCain generates annual sales in excess of CDN$6 billion. While potatoes are at the heart of our offering, we also produce many other food products, including pizza, appetizers, oven meals, juice and desserts. The company’s products can be found in thousands of restaurants and supermarket freezers in more than 160 countries around the world. McCain also owns The Day & Ross Transportation Group, one of the largest transportation companies in Canada. McCain is a leading manufacturer of French fries and frozen potato specialties. We also produce other foods, including pizza, appetizers, oven meals, vegetables and juice for both the retail and foodservice industries. Day & Ross Transportation Group and its divisions provide general freight, courier and warehousing services across North America. McCain Produce grows and sells seed potatoes globally McCain Foods: • Across six continents • 50 manufacturing facilities • 44 sales offices • 36,700 supplier partners • 3,200 grower partners Day & Ross Transportation Group: • 80 terminals across Canada • Operations across North America and globally Global Sales CDN$6 billion. mcchain food products...
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...GLOBAL MARKETING Marketing Plan Of Y&S CANDY ‘s : Twizzlers 1. Christin Rondonuwu 110613154 2. Stevani Mottoh 110613071 3. Cindy Tambunu 110613031 4. Sutria Manorek 110613184 5. Carmela Manoppo 110613033 6. Tri Sutrisno Kangiden 090613166 A. Executive Summary Product : Type : Brand Category : Food Brands, Snacks and Candy Brands , Healthy Candy , Flavors and Variants : Twizzler Nibs Twizzzler is a Fashion Candy that manufactured by Y&S candy . This candy is already popular in North America and Canada . Y&S Candies, is one of the first confectionery firms in North America. The company was established in 1845 as Young and Smylie and adopted Y&S as its trade-mark in 1870. Twizzler Candy is made by natural ingredients like Fruits , and sugar less . Price : Twizzlers Rainbow : 1 Pack ( O,435 Kilogram ) : 180.000 6 Pack ( 0,453 Kilogram ) : 1.050.000 Flavor : America Strawberry , California Orange , Washington Orange , Special Watermelon , Blue Raspberry and Americano Grape . Twizzlers Strawberry Signature 1 Pack ( 0,453 Kilogram ) : 225.000 6 Pack ( 0,453 Kilogram ) : 1.320.000 Twizzlers Cherry Signature 1 Pack ( 0,336 Kilogram ) : 225.000 6 pack ( 0 , 336 Kilogram ) : 1.320.000 Twizzlers Chocolate Signature : 1 Pack ( 0 , 34 Kilogram ) : 225.000 6 Pack ( 0,34 Kilogram ) : 1.320.000 Place : We decided to sell this product by using social media , Such as Twitter , Facebook , Web...
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...Lactée Henri Nestlé. (Nestle, 2013). The name of the company comes from the last name of the founder of the company, Henri Nestlé. He was a German pharmacist who developed a milk-based baby food. According to the company’s website, the corporate headquarters are located in Vevey, Switzerland, and the company has more than 25,000 employees nationwide, and 25 manufacturing facilities, 35 distribution centers, and 15 sales offices across the U.S. (Nestlé, 2013). Currently, the role of a CEO plays Paul Bulcke, who started working for the company in 1979 (Nestlé, 2013). The employees of Nestlé are dedicated to produce high quality products and maintain the best service (Nestlé Waters North America, 2013). The company believes in respect for people, honesty, integrity and teamwork and wants to achieve the organizational objectives by meeting current needs of people without compromising the needs of future generation (Nestlé Waters North America, 2013). The beliefs provide framework for decision making process and the same they shape the culture of the company. According to the company’s website, Nestlé works with partners like, the Partnership for a Healthier American (PHA) and USDA to promote healthy hydration and encourage people to healthy life style (Nestlé Waters North America,2013). The Nestle Company is a wide array of products that range from cereals and pet care to some of their well known products of chocolate and water. In fact, the company has become the...
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...article is about the company. For the soft drink, see Pepsi. PepsiCo Inc. | | Type | Public | Traded as | NYSE: PEP NASDAQ: PEP S&P 500 Component | Industry | Foods, Beverages | Founded | North Carolina, U.S. (1965 (1965)) | Founder(s) | Donald Kendall, Herman Lay | Headquarters | Purchase, New York, U.S. | Area served | Worldwide | Key people | Indra Nooyi (Chairman & CEO)[1] | Products | See list of PepsiCo products | Revenue | US$ 57.838 billion (2010)[2] | Operating income | US$ 08.332 billion (2010)[2] | Net income | US$ 06.338 billion (2010)[2] | Total assets | US$ 68.153 billion (2010)[2] | Total equity | US$ 21.476 billion (2010)[2] | Employees | 294,000 (2010)[2] | Divisions | PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo Europe; PepsiCo Asia, Middle East & Africa | Subsidiaries | List of subsidiaries | Website | PepsiCo.com | PepsiCo Inc. (NYSE: PEP) is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 – which added the Gatorade brand to its portfolio...
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.......................................................4 Campbell Soup Company © MarketLine Page 2 Campbell Soup Company Company Overview COMPANY OVERVIEW Campbell Soup Company (Campbell or 'the company') manufactures and markets foods and simple meals, including soups and sauces, baked snacks, and healthy beverages. The company operates in North America, Europe, Asia Pacific and Latin America. It is headquartered in Camden, New Jersey and employed about 20,000 people as of July 28, 2013. The company recorded revenues of $8,052 million in the financial year ended July 2013 (FY2013), an increase of 12.2% over FY2012. The operating profit of the company was $1,080 million in FY2013, a decrease of 6.5% compared to FY2012. The net profit was $458 million in FY2013, a decrease of 40.8% compared to FY2012. KEY FACTS Head Office Campbell Soup Company 1 Campbell Place Camden New Jersey 08103 1799 USA 1 856 342 4800 1 856 342 3878 http://www.campbellsoupcompany.com Phone Fax Web Address Revenue / turnover 8,052.0 (USD Mn) Financial Year End Employees New York Ticker July 20,000 CPB Campbell Soup Company © MarketLine Page 3 Campbell Soup Company SWOT Analysis SWOT ANALYSIS Campbell manufactures and markets foods and simple meals, including...
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...and Chipotle across the country, many Americans don’t really understand Mexican food. Most people who live in America don’t get to see the true beauty of food. We have fast food and microwavable food, while Mexican food is fresh and homemade. Mexican food varies by region, and there are certain ingredients that are used throughout Mexico. Mexican food has its roots from different countries. Each region in Mexico has its own type of food. Meat dishes are popular in the north, while in the south more dishes with vegetables and chicken are common. Communities along the sea enjoy a lot of seafood dishes; using fish like grouper, red snapper, mojarra and snook. Lobster, crab and oysters are abundant. Some Mexican recipes incorporate influences from South America, the Caribbean and Africa. Common foods, such as tacos and tamales, receive a special touch in each region of Mexico. White corn, beans, squash, tomatoes and chiles are the staples that have formed the foundation of Mexican cooking. The Mexican Indians relied on the combination of corn and beans for their protein, and they included small game, birds and fish whenever available. They either simmered or smoked the food. They did not have bread, but invented tortillas made of corn. When the Spainards arrived in Mexico, they brought influences from the Romans: wheat, bread, olives and olive oil, the Germanic tribes: pork and lard, and the North African Moors: sheep, chickens and spices, such as cinnamon and cumin, fruit, rices...
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...If you've studied Canadian history, you must know about an animal called bison. The bison are North America's largest mammal. Just two centuries ago, 30-60 million bison roamed North America, from Mexico to northern Canada. But unfortunately by 1900, this animal was almost wiped out. The most significant reasons for the disappearance of the bison were overhunting by the human and the expansion of the railways. Before the migration of the European settlers, the First Nations only hunted a few bison for food in order to live. Since the arrival of the newcomers, the fate of the bison was changed forever. The establishment of the Hudson’s Bay Company and the North West Company made the bison become a vital part of the First Nations and...
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...BEC1 Task 1 Western Governors University BEC1 Task 1 A1 and A2 Community Description and Data Rutherford County is a county located in the western foothills of North Carolina. Rutherford County was founded in 1779. Griffith Rutherford named the county after himself. He was a general in the American Revolutionary War. Today with the Motto of Small Town Friendly Rutherford County’s population is 67,810 according to 2010 Census. ("2010," 2014, p. 1) Rutherford County’s population is a mix of different races. The breakdown in 2010 consist of whites (86.79%), African Americans(11.23%), Native Americans(0.20%), Asian(0.22%), Pacific Islander(0.03%), other races(0.67%), two or more races(0.74%) and Hispanic(1.81%). ("Rutherford County," 2014, p. 1) The population age group under 18(23.8%), age 18-20(8%), age 25-44(27.9%), age 45-64(24.3%), and age 65 and older (16%). The population of females in 2010 is 35,029 and males 32,781. ("Rutherford County," 2014, p. 1) Rutherford County has 564 square miles of land and 1.7 square miles of water. ("US Census Bureau," 2014, p. 1) The birth rate per 1000 of the population for Rutherford County from 2000-2006 was 12.5%. The death rate per 1000 of the population for Rutherford County from 2000-2006 was 12.2 %.("Rutherford County, North Carolina (NC)," 2013, p. 1) In Rutherford county adult obesity is increasing, physical inactivity decreasing and the uninsured is rising. The obesity rate in 2010 was 28% compared to 2014 30%, Physical inactivity...
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... In general, the food related products will include: Beef, Chicken, Turkey, Potatoes, Fish, Processed Foods, Stoves, Vegetables, various machinery, and cash registers, order monitors, ovens, wireless systems for ordering services. Products will be explained in more detail further on. B. What will the product or service be called? The named Baked Hut shows our customers the kind of products we export because, usually fast food eaters are accustomed to oiled foods, so as an alternative for oil, most products will indeed be baked to lessen the amount of calories. It will also affect how we advertise it because it is a short, catchy, and non-difficult name that no one will have problems pronouncing or reading. Baked Hut will export food related products that will differ from a typical fast food restaurant in various ways. In current typical North American fast food markets, restaurants such as McDonald’s, Burger King, and KFC provide customers with food containing high amounts of calories, saturated and trans fats, sodium salt and processed sweeteners that increase your risk for chronic diseases. Baked Hut will alter this issue by providing the same idea of fast food, but instead encountering the health risks associated with regular fast food and providing customers with healthier food. The idea is for customers to gain the same pleasure of eating “fast food”, but without being conscious of how it is affecting their health. Generally, we’re looking at North American, or westernized...
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...Fin573 Fall 2007 Manager: Suhardi Abadi Sector: Consumer Staples Industry: Food and Nonalcoholic Beverage Company: PepsiCo (PEP) Recommendation: BUY 70 SHARES Company Overview PepsiCo is part of the global snack and beverage industry. Originally incorporated in 1919, the company manufactures, markets and sells a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods. With a market capitalization of $120 billion, PepsiCo is one of the largest manufacturers of branded food and beverages in the world with businesses in the United States and in more than 200 countries. Industry Overview The United States food and nonalcoholic beverage industry consists of companies that process or manufacture packaged foods and beverages for human consumption. The food companies’ produce goods such as dairy products, baked goods, microwaveable/instant dinners, condiments, and snack foods. They sell their finished goods to food retailers, which in turn sell the products to consumers. The beverage companies manufacture carbonated soft drinks, bottled water, juices and juice drinks, sport drinks, and ready-to-drink teas. The beverage industry in general is grouped into bottling companies and franchise companies (or brand owners). Bottlers are generally responsible for manufacturing, selling, and distributing products under brand names licensed from brand owners in an exclusive territory. However, bottling systems are not necessarily...
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...headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25 billion and over 142,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the...
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