Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 18 pages
Data source: Published sources
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https://casecent.re/p/101060
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Abstract
In 2010, CEO of PepsiCo, Inc Indra Nooyi declared the health and nutrition goals of the company. PepsiCo''s one of the goals was to increase revenue from the health and nutrition segment from $10 billion to $30 billion in a decade. The company took a significant step in this regard by acquiring a major juice and dairy producer Wimm-Bill-Dann in Russia. PepsiCo was the second largest food and beverage company in the world. Started with a single cola drink called Pepsi, the company expanded into other beverage segments and snacks. Over the years, food and beverage companies were under the scrutiny of public and legislators, owing to the rising health concerns by producing sugary soft drinks and salted snacks. Considering the changing trends and rising health concerns, PepsiCo decided to contribute to the healthy lifestyle of the consumers by providing better products in terms of nutrients and using healthy ingredients. In addition to that, PepsiCo increased its focus on emerging nations to increase its revenues. Considering the history of PepsiCo''s presence in Russia, the move of the company to invest and expand in the country was expected to give returns. On the other hand, some of the analysts were sceptical about the move and felt that the company''s investment in the country could be a risky step. PepsiCo''s gamble on Russia would payoff or not was something that remained to be seen.
About
Abstract
In 2010, CEO of PepsiCo, Inc Indra Nooyi declared the health and nutrition goals of the company. PepsiCo''s one of the goals was to increase revenue from the health and nutrition segment from $10 billion to $30 billion in a decade. The company took a significant step in this regard by acquiring a major juice and dairy producer Wimm-Bill-Dann in Russia. PepsiCo was the second largest food and beverage company in the world. Started with a single cola drink called Pepsi, the company expanded into other beverage segments and snacks. Over the years, food and beverage companies were under the scrutiny of public and legislators, owing to the rising health concerns by producing sugary soft drinks and salted snacks. Considering the changing trends and rising health concerns, PepsiCo decided to contribute to the healthy lifestyle of the consumers by providing better products in terms of nutrients and using healthy ingredients. In addition to that, PepsiCo increased its focus on emerging nations to increase its revenues. Considering the history of PepsiCo''s presence in Russia, the move of the company to invest and expand in the country was expected to give returns. On the other hand, some of the analysts were sceptical about the move and felt that the company''s investment in the country could be a risky step. PepsiCo''s gamble on Russia would payoff or not was something that remained to be seen.