Pepsico, Inc. · NASDAQ:PEP
Pepsico — Deutsche Bank Global Consumer Conference (June 2012)
33 slides from Pepsico's conference presentation, June 2012
Slide 1: Building Momentum By Getting Back to Basics
Building Momentum By Getting Back to Basics Al Carey, CEO PepsiCo Americas Beverages
Slide 2: Safe Harbor Statement of Terms
Safe Harbor Statement of Terms Safe Harbor Statement Statements in this communication that are "forward-looking statements” are based on currently available information, operating plans and projections about future events and trends. Terminology such as “believe,” “expect,” “intend,” “estimate,” “pr
Slide 3: Back to the Basics of Running Our Business
Back to the Basics of Running Our Business One Aligned Organization Invest in Big Core Brands Pipeline of Product and Package Innovation “Unleash Power of Local” Company-wide Productivity Mindset 3
Slide 4: One Aligned Organization: Simpler, More Agile Organization
One Aligned Organization Simpler, More Agile Organization From To Brand Co Unified Beverage Co Bottler Co 4
Slide 5: One Aligned Organization: Removing Obstacles for the Frontline
One Aligned Organization Focused on Removing Obstacles for the Frontline From To Bottling Co CEO Beverage Co CEO President Field SVP Field BU GM BU GM BU GM BU GM West South Central North 8 Region VPs 28 VPGMs 5
Slide 6: Invest In Big Core Brands: Significant Media Increase
Invest In Big Core Brands Significant Media Increase 6
Slide 7: The Fuel for Athletes Brought to Life Through Win From Within
Invest In Big Core Brands The Fuel for Athletes Brought to Life Through “Win From Within” 7
Slide 8: Mountain Dew: It's What We Dew
Invest In Big Core Brands Mountain Dew Stands for Exhilaration “It’s What We Dew” Brought to Life Through Action Sports 10
Slide 9: Pepsi Stands for Living in the Now
Invest In Big Core Brands Pepsi Stands for Living in the Now Brought to Life through Music and Sports 13
Slide 10: Single Serve: Strong Trends Year to Date
Single Serve: Strong Trends Year to Date YTD Value Growth +8% YTD SS Value Growth +6% YTD SS Value Growth +4% 16 Source: IRI GDMxC YTD for week ended June 3, 2012
Slide 11: Pipeline of Product and Package Innovation
Pipeline of Product and Package Innovation Pepsi Next Mtn Dew Lipton Last 10 wks Next YTD value growth YTD value growth CSD share SS Mtn Dew Lipton TM +0.9 pts +6% +11% 17 Source: IRI GDMxC YTD for week ended June 3, 2012
Slide 12: Pipeline of Product and Package Innovation
Pipeline of Product and Package Innovation Energy Dole Gatorade YTD value growth Acceleration Starbucks TM +20% Just launched on Chews Amp Reg +12% 18 Source: IRI GDMxC YTD for week ended June 3, 2012
Slide 13: Incubate New Beverage Ideas
Pipeline of Product and Package Innovation Incubate New Beverage Ideas Frito-Lay Growth Ventures Beverage Growth Ventures YTD value growth YTD value growth Sabra +18% Naked +26% Stacy’s +29% 19 Source: IRI GDMxC YTD for week ended June 3, 2012
Slide 14: We Will Be Ahead of the Next Big Opportunities
We Will Be Ahead of the Next Big Opportunities 1 Flavored CSDs 2 RTD Tea 3 Hispanics 4 Mountain Dew Dew has Flavored CSDs RTD Tea will be Hispanics will momentum and will equal Colas by ~40% of LRB represent 60% of can be disruptive 2015; we can lead growth cases LRB growth cases in the energy categ
Slide 15: Energy is a Growth Category
Energy is a Growth Category Energy Category Volume Growth PEP Volume Share 19% 23% 17% 2011 FY 2012 YTD 21 Note: PEP GDMxC volume share for FY 2011, includes PEP-owned energy brands and PEP’s portion of Rockstar distribution Source: IRI GDMxC for FY 2011 and 2012 YTD for week ended June 3, 2012;
Slide 16: We Will Participate across Key Energy Occasions
We Will Participate across Key Energy Occasions Pre-Athletic Mid-day Healthy Performance Energy Boost Energy 22
Slide 17: Unleash Power of Local
“Unleash Power of Local” Simplified structure with 8 Regions empowers local decision making 23
Slide 18: Unleash Power of Local: Hispanic California
“Unleash Power of Local” Hispanic: California 24
Slide 19: Everyday Value Execution
Everyday Value Execution Promotion Price vs. Everyday Price Creating Big Challenges Retail Bandwidth Market Example: 12- Benefits Pack Before After Before After Weeks in value EDV 100 74 Trip frequency 30-40% 50-60% Rate realization Feature 100 83 GTM costs Holiday 100 125 Profit 25
Slide 20: Consumer Value Enabled by Package Innovation
Consumer Value Enabled by Package Innovation Single Serve Multi-pack 26
Slide 21: Company-Wide Productivity Mindset
Company-Wide Productivity Mindset North America Cost Savings Initiatives Supply Chain • Complexity • Safety Management • Geo Box • Automation A&M • Improve working / non-working mix $500 – 600MM Cost Savings Through 2014 27
Slide 22: Power of One Approach
Power of One Approach 28
Slide 23: PepsiCo Trademarks: 9 of Top 35
PepsiCo Trademarks: 9 of Top 35 1 $10.0B 13 $1.8 B 25 $1.3 B 2 $6.3B 14 $1.8 B 26 $1.3 B 3 $4.0B 15 $1.6 B 27 $1.3 B 4 $3.3 B 16 $1.6 B 28 $1.3 B 5 $3.2 B 17 $1.6 B 29 $1.3 B 6 $3.0 B 18 $1.6 B 30 $1.3 B 7 $2.6 B 19 $1.5 B 31 $1.3 B 8 $2.6B 20 $1.4 B 32 $1.3 B 9 $2.3 B 21 $1.3 B 33 $1.2 B 10 $2.2 B
Slide 24: PepsiCo: Leading Contributor to YTD Food & Beverage Sales Growth
PepsiCo: Leading Contributor to YTD Food & Beverage Sales Growth 2012 YTD Sales Contribution to YTD Rank Food & Beverage Manufacturers ($B) Sales Growth (%) 1 STORE BRAND $19.2 11.7% 2 $10.5 8.3% PepsiCo Beverages $5.9 4.4% PepsiCo Foods $4.5 3.9% 3 $6.7 4.5% 4 $5.1 3.3% 5 $4.9 -0.7% 6 $4.7 8.0% 7 $
Slide 25: Power of One Opportunity: Strategic Customers
Power of One Opportunity: Strategic Customers 31 Source: 2011 Kantar Retail PowerRanking Composite Score
Slide 26: Power of One Opportunity: Foodservice
Power of One Opportunity: Foodservice 32
Slide 27: Power of One Opportunity: Sports Activation
Power of One Opportunity: Sports Activation 33 Source: IRI Household Panel for week of 1/30/12-2/5/12 relative to average for 1/2/12-3/11/12
Slide 28: Sports Activation: Demand Moment Party Time
Power of One Opportunity: Sports Activation Demand Moment: “Party Time” TAILGATING 34
Slide 29: PepsiCo Sports Properties
PepsiCo Sports Properties Leagues Pro Teams Colleges 35
Slide 30: Status Against Our Goals: Opportunities
Status Against Our Goals: Opportunities • Power of One • Grocery Price Architecture With Multi-Pack Cans 36
Slide 31: Status Against Our Goals: Progress
Status Against Our Goals: Progress • Single Serve Sales • Small Format, Club, Foodservice, Dollar • Dew, Gatorade, Lipton, Starbucks, Naked • Next • Campaigns 37
Slide 32: We are Building Momentum Brick by Brick
We are Building Momentum Brick by Brick
Slide 33: Building Momentum By Getting Back to Basics
Building Momentum By Getting Back to Basics
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