Pepsi's long been seen as the less-cool younger bro of Coke... but it still has a huge 26% market share of carbonated soft drinks in the US.
Background: PepsiCo is the fizzy and salty goods company behind products like Doritos, Smith's Chips, Mountain Dew and of course, Pepsi and Pepsi Max.
What happened: Pepsi's long been seen as the less-cool younger bro of Coke...but it still has a huge market share of carbonated soft drinks. We're talkin' nearly 26% in the US. And the whole company is worth a whopping US$208 billion.
What else: Now, PepsiCo's revenue has smashed analysts' expectations despite global supply chain issues and product price hikes. The company's net sales rose a whopping 11.6% to US$20.19 billion.
💡Generally, when a company increases its prices, it causes customers to buy less product (it's called price elasticity). So, brands try to hide the price increase...Remember when Cadbury cut its choccie blocks by a fifth, and only reduced prices by 20 cents?
💡Other companies like Pepsi are attacking the issue straight on with flat out price hikes.
💡And, although it seems like Pepsi's wearing the Survivor immunity necklace...its customers are just really loyal. They'll buy the products no matter what (aka price inelastic!).
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