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Allison and Stephen Ellsworth, who founded the soda brand Poppi, are launching a new company called Jetty. The brand will sell bottled drinks and electrolyte powders, putting it in direct competition with Gatorade in the hydration market.
PepsiCo actually bought Poppi for nearly 2 billion dollars last year, so the founders are now building a rival to their former parent company's biggest sports drink. While Gatorade has a massive lead in shelf space and distribution, the rise of newer hydration brands shows that shoppers are looking for alternatives with different ingredients or branding. This is worth watching to see if Jetty can peel away younger customers from Gatorade's core business.
Source: CNBC
PepsiCo is planning to cut around 1,000 jobs in its North American business. The move comes as the company faces a tougher environment where shoppers are more careful with their spending, making it harder to grow sales by simply raising prices.
While 1,000 jobs is a small fraction of its global workforce, the cuts show management is focused on protecting profits. By trimming its costs now, the company can free up cash to invest in its more successful international snack business or its new AI-driven factory upgrades.
Source: Reuters
PepsiCo has renewed its deal to be the primary provider of drinks and snacks for KFC across several international markets. This extension builds on a decades-long relationship between the two companies as KFC continues to open new locations globally.
This is a steady win for the beverage side of the business. By locking in these large-scale service contracts, PepsiCo ensures its products stay in front of millions of customers and protects its market share against rivals like Coca-Cola. It also supports the company's broader goal of growing its presence in international markets where snack and drink consumption is still rising.
Source: PRNewsWire
The World Bank expects global commodity prices to rise about 23 percent this year as conflict in the Middle East disrupts shipping and pushes energy costs higher. This is a direct challenge for a company like PepsiCo, which relies on steady prices for the fuel used to deliver snacks and the ingredients used to make them.
When the things it buys cost more, the company has to either raise its own prices or keep less profit on every bag of chips and bottle of soda. Since many shoppers are already feeling the pinch of inflation, raising prices further could hurt sales volume. This makes the company's recent push into AI-driven manufacturing even more important as it looks for ways to cut factory costs and protect its earnings.
Source: Reuters
The company signed an 11-year extension to keep its sodas and juices in Taco Bell restaurants across the U.S., Canada, and parts of Europe and Asia. This deal secures a massive and reliable sales channel for brands like Pepsi and Mountain Dew for over a decade.
This win is particularly important because it comes just days after KFC announced it would switch its business to rival Coca-Cola. By locking in Taco Bell, which is owned by the same parent company as KFC, PepsiCo has protected a major piece of its restaurant business and prevented a wider loss of market share.
Source: PRNewsWire
Management has a long history of setting conservative targets and clearing them by a few cents. This makes their forecasts highly reliable, even as the business works through a slow patch in North America.
| Expectation | |
|---|---|
| EPS | $2.24 |
| Revenue | $30.42B |