The restructuring this week forced on PEP by Elliot was a long time coming. I was in the market today and Lay's PC was 42 cents per ounce and the HEB label was 28 cents. PEP is charging almost a 50% premium for a product that is no better than HEB. What does the consumer get for paying that premium ?.... nothing. HEB chips are just as good as Lays. It seems that fat premium PEP charges is just used to maintain an expensive bloated, top heavy, inefficient, complacent bureaucracy which isn't focused on either the consumer or the shareholders. Management not only let this happen, but allowed it to continue year after year as they just cruised along on auto-pilot with their "business as usual" strategy of just shrinking the bag and raising the price oblivious to any consequences. One consequence is that they attracted the "Activist Investor" sharks. The sharks detected a big fat ineffective bureaucracy floundering in the market place, they circled it, and are now starting to tear it apart.
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@ck because the myopia lense of Frito who are an oligopoly but reality was they failed to understand and still donot understand the efforts we took to be successful deliver against all odds. That useless Indra and her India first agenda later wrecked havoc with Pbg and entire PepsiCo. The earthquakes continue to happen with Ramon and useless Athina heads in the sand while the economic tsunami reality strikes.
@ck if these integrated supply chain pilots don't work in texas they talked about on the investor call, refranchizing coming
Which to your point may be better ultimately with focused bottlers caring for their business
@ck BO-M!!!!
And you said it!!
100% right
PBG was waaaay better
Then Pepsico came and....
Here we are
Cut price, reduce margin, cut jobs.
- don’t complain about layoffs.
Yes- it all starts with leadership.
Making decisions based off their own personal gains, not the betterment of then whole.
This is a corporation with deep roots tied to consultants like BCG, McKinsey, bane and more. They leave here, go there and back and forth.
If you aren’t in their elite group, you are just a number and a tool they use.
I’m in the same boat as you.
I absolutely understand the mentality of the older folks in this company saying —- it, and doing the bare minimum. It used to make me made at Quaker, then I went to beverages and it really started to make more sense. Hard work is not valued at PepsiCo.
This year will be about padding my resume and finding something better elsewhere.
25yrs ago in the PBG culture we operated under the axiom “PIGS GET SLA-GHTERED” … upper single-digit volume growth back then meant only marginal price-moves, and we were able to sustain / grow share in the Northeast by retaining the element of value …
PepsiCo steps in, eliminating the middleman and ham-handedly removes pricing decisions from the field … shoving fistfuls of customer margin in their pockets with zero regard for the Longview …. and suddenly they’re looking at eachother confused, trying to figure why the golden goose is lying on the side of the road
Yes, but the one thing they are not doing is pulling the weed from the root. The problem is still in place with a slightly better plan. The should have asked, no demanded the head of the snake. We need a true operations mgr, what we need is franchise, and they stopped short. Now we’ll have to wait another year for that change. It’s coming because that what’s needed to right the ship.