PepsiCo, Inc
PepsiCo is a U.S.-based consumer packaged goods company that sells beverages and convenient foods through a global portfolio of brands. Its business spans company-owned bottling, franchise beverage operations, and branded snack and food distribution across more than 200 countries and territories.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueBeverage concentrates, fountain syrups and finished goods sold in the U.S. and Canada.
Snack foods, cereals, dips and other convenient foods sold in the U.S. and Canada.
International franchise beverage systems and SodaStream products.
Convenient foods and company-owned bottling operations across Europe, the Middle East and Africa.
Convenient foods businesses across Latin America.
Convenient foods businesses in Asia Pacific, including China, Australia, New Zealand and India.
Customers
PepsiCo sells to large retailers, wholesalers, foodservice operators, independent distributors, and bottling partners, with Walmart and its affiliates representing a major customer relationship. Its products are also purchased by consumers through supermarkets, convenience stores, club stores, restaurants, vending, and e-commerce channels. The company’s mix of direct finished-goods sales and concentrate/franchise sales means it serves both retail channels and manufacturing/distribution partners.
Large chains such as Walmart buy beverages and snacks for nationwide resale and shelf presence.
They buy concentrates and finished goods to manufacture, distribute and sell branded beverages.
Restaurants, cafeterias and other operators buy fountain syrups, chilled drinks and packaged products.
They buy packaged beverages and snacks for consumer takeaway and repeat purchase.
End consumers choose PepsiCo brands for taste, convenience, hydration and snacking occasions.
Strategy
PepsiCo’s strategy centers on managing a broad portfolio of beverage and food brands across multiple channels and geographies. The company relies on brand investment, customer relationships, bottling and distribution capabilities, and product innovation to defend shelf space and consumer loyalty. Its structure also supports a mix of franchise beverage economics and direct finished-goods operations.
Iconic brands drive repeat purchase, pricing power and shelf presence across categories.
Broad physical reach is essential for beverage availability and route-to-market efficiency.
Large customers influence volume, shelf placement and promotional intensity.
Local product fit and market structure determine performance outside North America.
Geography
2025PepsiCo operates globally, with major revenue concentration in the United States and meaningful businesses across Mexico, Canada, Europe, Latin America, Asia Pacific, and Africa. The company’s operating model combines local manufacturing, bottling and distribution with international franchise systems, which makes geography important for sourcing, logistics, and channel access. Country mix also affects exposure to currency movements, regulation, consumer preferences and supply-chain complexity.
Share of the revenue the company reports by geography.
Risks
PepsiCo faces demand risk if consumers trade down or reduce purchases of branded snacks and beverages, and it is exposed to intense competition from global, regional and private-label rivals. Its manufacturing and sourcing model also creates exposure to commodity inflation, packaging shortages, logistics disruption, product quality issues and recalls. Large-customer concentration, foreign exchange, geopolitical instability and impairment risk on brands and intangibles are additional material risks.
- Commodity and supply-chain disruptionImpact: HighLikelihood: High
The company depends on agricultural inputs, packaging, transport and manufacturing continuity.
Exposure: Open-market commodities and global sourcing across multiple regions.
- Customer concentrationImpact: HighLikelihood: Medium
A small number of large retailers can represent a meaningful share of revenue and bargaining power.
Exposure: Walmart and affiliates represented about 14% of consolidated net revenue in 2025.
- Product quality and recall eventsImpact: HighLikelihood: Medium
Food and beverage products can be affected by contamination, mislabeling or spoilage.
Exposure - Foreign exchange and geopolitical exposureImpact: MediumLikelihood: Medium
A large share of revenue and assets is outside the U.S., creating translation and operating risk.
Exposure - Goodwill and intangible asset impairmentImpact: MediumLikelihood: Medium
Brand and franchise values depend on long-term cash flow assumptions and discount rates.
Exposure: Indefinite-lived intangibles and goodwill across reporting units.
Accounting
Judgemental itemsSales incentives, discounts and marketing support are recorded as reductions of revenue or expenses, affecting net sales comparability.
Impact: Net revenue and gross-to-net trends
Brand values are tested using discounted cash flow and market assumptions, so changes in growth or discount rates can trigger impairment.
Impact: Operating profit and balance sheet carrying values
Swaps and futures are used to manage input-cost volatility, and hedge accounting affects timing of gains and losses.
Impact: Cost of sales and other income/expense
Discount rates, asset returns and benefit assumptions affect expense and liabilities.
Impact: Operating expenses and other liabilities
Reserves are based on customer collectibility, aging and forward-looking macro assumptions.
Impact: Accounts receivable and bad debt expense
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Last updated: 24/09/2026