Fair - Optimistic

Future Efforts:

Digitalization:

• Automation of the supply chain.

• Investment in data, enabling large-scale digitalization across the entire value chain (from procurement to factory management, including transportation and market placement).
• Improved understanding of ROI to optimize advertising and marketing expenses.

Geographical Expansion:

• Construction of two renewable energy-powered factories in Vietnam, with a total investment of $400 million:
  • $300 million for a beverage factory in Long An, operational in Q1 2026.
  • $90 million for a food processing factory in Ha Nam, operational in Q3 2025.
• Acquisition of Varun Beverages, a bottler in Africa, to expand operations in the region.
• Increased investments in India to capture additional market share.

Product Diversification:

• Acquisition of Siete Foods, specializing in Mexican cuisine, aiming to appeal to the growing Hispanic population in the United States.

Environmental Responsibility

• Carbon Neutrality by 2040: Expansion of the electric fleet, particularly in California, with 50 Tesla trucks and 75 Ford E-Transit vans.
• 2.8 Million Hectares of Regenerative Agriculture by 2030.

Thoughts

• Generation Z snacks more and prefers small meals over large ones.
• Margins are stable.
• PepsiCo is more capable than other companies, such as Monster Beverages or Coca-Cola, of offering healthier and more diversified products.
• Investments in the Indian and Vietnamese markets could benefit the company in the medium to long term.

I would say that PepsiCo stands out as one of the most robust and interesting companies in the consumer goods sector, to my knowledge, and compared to its peers. We need to monitor its future progress and whether it succeeds in meeting its commitments.

Valuation

• 2% annual revenue growth
• PER of 26 just like the 10 years average

PEP seems to be fairly valued today but I tend to be optimistic about the company and believe it may exceed my expectations.