PepsiCo, Inc. · NASDAQ:PEP
PepsiCo — Consumer Analyst Group of New York Conference 2015
46 slides from PepsiCo's conference presentation, Feb 19, 2015
Slide 1: PepsiCo North America
PepsiCo North America February 19, 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement • This presentation should be viewed in conjunction with PepsiCo’s webcast presentation at the Consumer Analyst Group of New York Conference on February 19, 2015 and PepsiCo’s Form 8-K filed with the Securities and Exchange Commission on February 11, 2015. Safe Harbor Statement
Slide 3: Introducing Al Carey
Introducing Al Carey Al Carey 33 years at PepsiCo Current Chief Executive Officer, PepsiCo Americas Beverages 2006 – 2011 President & CEO, Frito-Lay North America 2004 – 2006 President, PepsiCo Sales 2002 – 2004 Chief Operating Officer, PepsiCo Beverages and Foods 1998 – 2001 SVP, Sales, Pepsi-Cola
Slide 4: Agenda
Agenda PepsiCo North America Better Together – Balancing Focus and Scale How it Looks in Action Partnering with Our Customers Growing Foodservice 4
Slide 5: PepsiCo North America is a great business
PepsiCo North America is a great business Large and Balanced Portfolio NA Contribution to PepsiCo Net Revenues North America Snacks vs Beverages Split $37 Billion in Net Revenue Balanced Portfolio Rest of North World Beverages Snacks America 44% 56% 54% 46% 5 Both figures based on PEP 2014 net reven
Slide 6: We have significant scale advantage at retail
We have significant scale advantage at retail We are the Largest F&B Supplier to Retailers Retail Sales Indexed to PepsiCo for FY 2014 PepsiCo 100 Company A 50 Company B 47 Company C 47 Company D 39 Company E 36 Company F 26 Company G 24 Company H 20 Company I 20 6 Source: IRI MULOC US 2014 (F&B Ret
Slide 7: We participate in attractive categories
We participate in attractive categories Benefits of Portfolio Large F&B High Low Private Segments Turns Label Presence Largest Two Categories within F&B, Annual Turns by Category Private Label $ Share of Category (%) 2014 IRI MULOC Retail $ 2014 IRI Grocery 2014 IRI MULOC #1 Macro LRB 43 LRB 8 Snack
Slide 8: We have been improving performance in On-the-Go packs
We have been improving performance in On-the-Go packs PEP Quarterly U.S. Retail Value Growth for On-the-Go Packs Value growth vs prior year Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 8 Source: IRI MULOC; FY 2014 through 12/28/14; 1L & 32oz packages sold in LF included in “At Home”
Slide 9: Our strong innovation pipeline positioned to help drive growth
Our strong innovation pipeline positioned to help drive growth 9
Slide 10: We have 4 of top 10 Beverage growth brands & 5 of top 10 Macrosnacks
We have 4 of top 10 Beverage growth brands & 5 of top 10 Macrosnacks growth brands in 2014 4 of Top 10 Beverage Growth Brands 5 of Top 10 Macrosnacks Growth Brands #2 #5 #2 #4 #7 #8 #5 #6 #9 10 Source: IRI MULOC; FY 2014 through 12/28/14. Lipton is RTD only.
Slide 11: Retailers like doing business with PepsiCo
Retailers like doing business with PepsiCo Categories are PepsiCo is the Largest Contributor Attractive to Retailers to U.S. F&B Retail Growth 2014 Contributors to Growth ($ millions) High Impulse Company B Basket Builders Company C FY +2.6% Company D Q4 +3.7% Company E Drive traffic Company F
Slide 12: Our leaders embody Better Together
Our leaders embody Better Together Tom Greco Vivek Sankaran Kirk Tanner 28 years at PepsiCo 6 years at PepsiCo 23 years at PepsiCo Chief Executive Officer, Chief Commercial Officer, President, Current Frito-Lay North America Current PepsiCo North America Current PepsiCo Global Foodservice Chief Comm
Slide 13: Agenda
Agenda PepsiCo North America Better Together – Balancing Focus and Scale How it Looks in Action Partnering with Our Customers Growing Foodservice 13
Slide 14: Thoughtful balance of focus and scale
Thoughtful balance of focus and scale Benefits Focus Scale Leverage Brand Management Properties Commercial Productivity Procurement/Technology Cost Price Mix Shopper Insights Capability 14
Slide 15: Our categories are highly complementary
Our categories are highly complementary Purchased and Consumed Together Common Demand Spaces Healthy Mornings Bold Uplift Fun Times Together 15
Slide 16: We are executing against a focused agenda
We are executing against a focused agenda Brand Building Innovation Productivity Execution 16
Slide 17: Investing in our brands
Investing in our brands Gatorade 50th Doritos Pepsi / Dew Tostitos 17
Slide 18: Downtown Phoenix
n Phoenix =: =— ~ SP 2 ee ts ictal 5 2
Slide 19: A Winning Formula
1 A Winning Formula S PEPSICO NEED HELP?
Slide 20: Super Bowl Support
1 Super Bowl Support $ PEPSICO < act
Slide 21: Our 2015 innovation pipeline is strong
Our 2015 innovation pipeline is strong Snacks & Foods Beverages 21
Slide 22: Building unmatched execution capabilities
Building unmatched execution capabilities Plan Sell Evaluate Mobile Digital Playbook Store Level Insights Analytics Workbench Custom Assortment & Marketing Overlays • Aligned Priorities • Sales & Category Performance Metrics • Customer Segmentation • Continuous Improvement • Integrated Activation 22
Slide 23: Productivity Journey Continues
Productivity Journey Continues Supply Chain Automation Network Optimization 23
Slide 24: A Focused Better Together Commercial Agenda
A Focused Better Together Commercial Agenda Customer Management eCommerce Foodservice 24
Slide 25: Agenda
Agenda PepsiCo North America Better Together – Balancing Focus and Scale How it Looks in Action Partnering with Our Customers Growing Foodservice 25
Slide 26: Together we have exceptional access to retail leadership
Together we have exceptional access to retail leadership Leading Growth & Multi-Category Scale Enable PEP • Jointly Plan the Year • Establish Targets & Priorities • Design Anchor Programs • Execute Transformational Growth 26
Slide 27: Supported by leading PEP capabilities to drive growth
Supported by leading PEP capabilities to drive growth Store Level Demand & Shopper Insights Precision Location & Assortment Digital & In-store Marketing Frontline Execution Online Integration 27
Slide 28: Portfolio solutions to drive center store and perimeter
Portfolio solutions to drive center store and perimeter Category Prioritization Affinity Adjacency Space & Location Redesigned Aisle & Perimeter 28
Slide 29: Anchor programs drive growth for our retailers
Anchor programs drive growth for our retailers Dollar General 7-Eleven Amazon 29
Slide 30: Anchor programs drive growth for our retailers: Walmart
Anchor programs drive growth for our retailers Walmart 30
Slide 31: Walmart Game Time Commercial
WALMART GAME TIME COMMERCIAL 31
Slide 32: Agenda
Agenda PepsiCo North America Better Together – Balancing Focus and Scale How it Looks in Action Partnering with Our Customers Growing Foodservice 32
Slide 33: Foodservice significant growth/access opportunity
Foodservice significant growth/access opportunity Opportunity Access Brands 4.2% PROJECTED GROWTH 33 Source: Technomic 2014
Slide 34: Better Together approach creates significant advantage
Better Together approach creates significant advantage Selling Scale Portfolio Power 34
Slide 35: Selling across multiple brands and consumer needs
Selling across multiple brands and consumer needs 35
Slide 36: Customers win with our all-access partnership approach
Customers win with our “all-access” partnership approach Great Pairings Menu Innovation Custom Solutions 36
Slide 37: Our promise is to provide the very best of PepsiCo to our customers
Our promise is to provide the very best of PepsiCo to our customers to help grow their brand Brand Building Innovation Brand Building Innovation We leverage our We have channel specific innovation advantage portfolio ‒ product, package and equipment Productivity Execution Productivity Execution Part
Slide 38: We begin with Brand-Building products and formats
We begin with Brand-Building products and formats designed for the unique needs of the Away From Home space 38
Slide 39: Breakthrough Innovation drives customer traffic
Breakthrough Innovation drives customer traffic 39
Slide 40: 7-Eleven program drove impressions and traffic
7-Eleven program drove impressions and traffic 40
Slide 41: Tailored activation strengthens our brands
Tailored activation strengthens our brands 41
Slide 42: Big event marketing drives consumer affinity
Big event marketing drives consumer affinity 42
Slide 43: PepsiCo's Next Gen Equipment engages consumers
PepsiCo’s Next Gen Equipment engages consumers 43
Slide 44: We Plan, Sell and Execute together
We Plan, Sell and Execute together We Plan Together We Sell Together We Execute Together Digital Playbook • Aligned Priorities • Customer Segmentation • Integrated Activation • Mobile 44
Slide 45: We Win together
We Win together With Consumers and with Customers 45
Slide 46: PepsiCo
S PEPSICO
PepsiCo — Consumer Analyst Group of New York Conference 2015 on 6ix