PepsiCo’s Diversified Portfolio Positions It Ahead in the FMCG Race
PepsiCo’s consistent performance continues to position it as a leader in the consumer packaged goods sector, not just for its beverages but for its far-reaching presence in the snack food category. While Coca-Cola remains dominant with its beverage brands, PepsiCo’s deeper reach across multiple FMCG verticals gives it a significant industry edge.
In fiscal 2023, PepsiCo reported revenue of $91.5 billion, growing 6% year over year. By contrast, Coca-Cola posted $45.8 billion in revenue for the same period. PepsiCo’s scale advantage stems largely from its snacking business, anchored by household staples like Lay’s, Doritos, and Cheetos, which continue to drive growth amid changing consumer consumption behaviors.
Approximately 58% of PepsiCo’s revenue comes from food segments, underscoring its diversified portfolio beyond beverages. This positions the company more defensively against category-specific headwinds such as sugar taxes, changing health preferences, or shifting demand within carbonated soft drinks. Meanwhile, Coca-Cola remains largely dependent on drinks, despite ongoing efforts to expand its footprint into coffee, sports drinks, and ready-to-drink beverages.
Another clear advantage for PepsiCo lies in its operational resilience. The company has demonstrated strong pricing power, leveraging brand equity to support revenue growth in the face of rising costs and inflationary pressures. In 2023, organic revenue rose 9%, driven by not only price increases but also consistent consumer demand across core brands.
PepsiCo has also been actively investing in product innovation and sustainability initiatives, further strengthening its long-term position in the market. Strategic investments in healthier snack alternatives and eco-friendly packaging are aimed at aligning with evolving consumer priorities and retailer expectations.
From an FMCG strategy standpoint, PepsiCo’s ability to straddle both beverage and snack categories provides retailers and distributors with a broader assortment under one umbrella, enhancing route-to-market efficiency and category management opportunities.
While Coca-Cola continues to exhibit brand strength and global reach, PepsiCo’s diversified revenue streams and operational execution make it a compelling model in the FMCG sector. For brand managers and market analysts, PepsiCo offers valuable lessons in category expansion, portfolio balance, and long-term growth resilience.