Latest news with #globalstrategy
Globe and Mail
a day ago
- Business
- Globe and Mail
PepsiCo's International Business Shines: Can It Reignite Performance?
PepsiCo, Inc. 's PEP international business is a cornerstone of its global strategy and long-term growth strategy. In first-quarter 2025, its international business delivered 5% organic revenue growth, marking the 16th consecutive quarter of at least mid-single-digit growth, despite ongoing geopolitical and macroeconomic challenges. Strong international demand for products like Tropicana juices and Cheetos helped to offset the slowdown in the U.S. market. This business is also central to PepsiCo's diversification efforts, contributing nearly 40% of the company's total 2024 net revenues and core operating profit, and representing a significant portion of its nearly $37 billion international portfolio. PepsiCo's international beverages business led the performance, achieving 11% organic growth in first-quarter 2025, driven by robust demand in key markets including China, India, Egypt, Turkey, Mexico, Brazil, the U.K. and Australia, alongside market share gains in Germany, France, Spain and South Korea. Meanwhile, the company's international convenient foods business grew 2% organically, driven by strength in markets like Brazil, Egypt, India and Turkey, and complemented by snack share gains in China, South Africa, Poland and Thailand. These results highlight the company's ability to tailor products to local preferences while strengthening market share across both beverages and snacks in a broad array of global regions. Looking ahead, PepsiCo plans to build its global momentum by scaling its international presence and deepening its localization efforts. This includes adapting its product offerings to suit regional tastes, modifying price-pack architectures to provide greater consumer value and expanding channel reach. The company also aims to elevate productivity through investments in automation, digitalization and standardization across global operations, freeing up capital to reinvest in commercial initiatives and innovation. PepsiCo's international growth strategy is focused on long-term profitability through sustained product innovation, market-specific customization and operational efficiency. Despite near-term headwinds from foreign exchange and supply chain inflation, particularly due to tariffs and input sourcing challenges, the company remains confident in the resilience and scalability of its global model. With a firm commitment to adaptability and efficiency, PepsiCo's international operations continue to play an essential role in supporting its broader strategic and financial goals. PEP's Competition in the International Market The Coca-Cola Company KO and Monster Beverage MNST are the key beverage companies competing with PepsiCo in the global arena. Coca-Cola, a leading beverage company, is PepsiCo's key competitor in the international market. Coca-Cola and PepsiCo compete directly in several international markets, including India, China, Brazil and Mexico. In these regions, both companies vie for market share in the non-alcoholic beverage sector, employing strategies tailored to local consumer preferences and leveraging their extensive distribution networks. Coca-Cola's international strategy focuses on being a "Total Beverage Company," expanding beyond carbonated drinks to include juices, dairy, plant-based beverages and energy drinks. Regionally, Coca-Cola's market share is particularly strong in Latin America (61.8%), Western Europe (51.8%) and the Asia-Pacific region (50.9%). This dominance is attributed to its strategic localization efforts, adapting products to suit regional tastes and preferences. Coca-Cola's international business remains a critical driver of its global performance, contributing approximately 61.3% of its total revenues in 2024. Monster Beverage's international business continues to be a key growth driver, contributing approximately 39.6% of its total revenues in the first quarter of 2025. Strategically, MNST is focused on expanding its international footprint through product launches in key markets such as China, India and the EMEA region. The development of a juice production facility in Ireland is part of its efforts to bolster growth and regional efficiencies. These initiatives aim to enhance Monster Beverage's global presence and adapt to regional consumer preferences. Monster Beverage's international operations overlap with PepsiCo's in several key markets, including China, India and Mexico. In these regions, both companies compete in the energy drink segment, with PepsiCo's Rockstar brand and MNST's diverse offerings like Reign, Bang and NOS vying for market share. This competition underscores the dynamic nature of the global energy drink market and the strategic importance of these regions for both companies. PEP's Price Performance, Valuation and Estimates Shares of PepsiCo have lost around 13.5% year to date against the industry's growth of 6.9%. From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 16.33X, significantly below the industry's average of 18.59X. The Zacks Consensus Estimate for PEP's 2025 earnings implies a year-over-year decline of 3.6%, whereas its 2026 earnings estimate suggests a year-over-year uptick of 5.4%. The estimates for 2025 and 2026 have been southbound in the past 30 days. PEP stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis Report Monster Beverage Corporation (MNST): Free Stock Analysis Report
Yahoo
3 days ago
- Business
- Yahoo
JPMorgan Chief Strategist on Tariffs, Investing Abroad and More
David Kelly, Chief Global Strategist for J.P. Morgan Asset Management, joins WSJ's Take On the Week podcast to explain the importance of global investment diversification. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News.com.au
3 days ago
- Business
- News.com.au
JPMorgan Chief Strategist on Tariffs, Investing Abroad and More
David Kelly, Chief Global Strategist for J.P. Morgan Asset Management, joins WSJ's Take On the Week podcast to explain the importance of global investment diversification.
South China Morning Post
18-05-2025
- Politics
- South China Morning Post
How the Indo-Pacific got its name – and what China has to do with it
Open a book of maps and look for the ' Indo-Pacific ' region – it likely won't be there. Yet the Indo-Pacific is now central to how many countries think about strategy and security. It describes a region spanning two oceans and dozens of countries, encompassing much of the world's trade routes. The Indo-Pacific did not emerge from the patterns of ancient trade, nor from long-standing cultural or civilisational ties. Instead, the concept comes from the realms of political science and international relations. The term can be traced back to the work of German political scientist and geographer Karl Haushofer – who was notably favoured by Adolf Hitler – in the 1920s. But it only truly gained traction in think tanks and foreign policy-setting departments in Washington and other Western capitals in the late 20th and early 21st centuries. It coincided with a shift in the global balance of power from a unipolar world – dominated by one superpower – to a multipolar one over the past decade or so. 'Confluence of the two seas'
Fast Company
08-05-2025
- Business
- Fast Company
Balancing global vision with local execution: Lessons from a logistics leader
Being a leader in today's business world means walking a tightrope: crafting a sweeping global vision while remaining attuned to the unique needs of local markets. For years, leaders have wrestled with this balancing act. Today's global workforce looks a lot different than in years past. With remote work here to stay—combined with shifting geopolitics and growing dependence on technology—balancing global strategy and local execution has never been more important. Can your global strategy survive without adapting to local realities? Can workers operating hundreds of miles from their colleagues, across time zones, still embrace the DNA of what makes an organization special? I experience this every day at my company, a global logistics leader with operations in 75 countries. Managing the flow of goods across continents requires a unified global strategy and deep respect for local market realities, whether it's navigating complex regulations in Latin America, understanding port infrastructure challenges in Canada, or building trust with partners across the U.S. and Mexico. GLOBAL-LOCAL BALANCE IS ESSENTIAL Having a strong global vision provides direction, but it must align with local realities. If businesses don't adapt their strategies to local needs, they risk losing their audience. But if they stray too far from their global framework, they risk inconsistency. With operations in over 80 countries, Starbucks has mastered local adaptation. From green tea lattes in Japan to masala chai in India, they meet regional tastes while staying true to their brand. It's this thoughtful balance that turns a global vision into real success. For my company, balance is key to ensuring the seamless movement of cargo from origin to destination. Our global customers rely on us for consistency and reliability, but we succeed because we understand the unique demands of ports, customs, and transportation networks in each region. To achieve this kind of success, businesses need to be ready to tackle some key challenges. CULTURAL AND MARKET COMPLEXITIES Overlooking societal norms or misunderstanding customer needs can leave a lasting impact. Despite its innovation, Uber stumbled in markets like Japan and Germany by underestimating cultural perceptions around ridesharing and trust. In my experience, I've seen firsthand how cultural missteps can derail progress. In one LATAM market, we initially underestimated the importance of building personal relationships before discussing business. Adjusting our approach transformed our partnerships. Solution: Invest in cultural training and empower local experts. Local hires offer insights that global teams might miss. Our teams in regions like the Middle East and Southeast Asia are often led by professionals who understand the local landscape. COMMUNICATION BARRIERS With remote work and distributed teams, maintaining cohesion across functions has become more complex. Miscommunication can lead to delays and disruptions across the supply chain. Solution: Leverage tools like Slack, Microsoft Teams, and Zoom, but don't stop there—prioritize a culture of transparency. I encourage open dialogue with my employees and empower them to voice concerns. ADAPTING TO LOCAL MARKETS A one-size-fits-all strategy may work on paper, but in practice, it's a recipe for disaster. Navigating diverse regulatory landscapes is a daily challenge for logistics companies. From U.S. customs policies to Mexico's evolving trade regulations, each market presents different hurdles. For example, e-commerce companies face different regulations across markets, from Europe's GDPR laws to China's cybersecurity requirements. Solution: Create geographically specific task forces tasked with navigating regulatory landscapes and market conditions. We collaborate with local regulators and industry forums to stay ahead of changes, and work closely with customs authorities to ensure compliance. DEVELOPING A DIVERSE AND SKILLED LOCAL WORKFORCE A global strategy is meaningless without people on the ground to execute it. Retaining and nurturing local talent is tough but critical. Our ports and logistics hubs thrive because of the local teams driving day-to-day operations. Solution: Offer globally consistent development programs that cater to local workforce expectations. Companies like Unilever run management trainee programs that blend localized training with access to global resources to ensure a rich, adaptable talent pipeline. We offer training that integrates global best practices while respecting local labor expectations. TECHNOLOGY AS THE BRIDGE Innovation is reshaping the way businesses connect their big-picture goals to local execution. With AI and data analytics leading the charge, leaders gain valuable insights into market behaviors and cultural sentiment. For example, cloud platforms ensure our teams from Dubai to Los Angeles can collaborate seamlessly. When time zone challenges prevent us from connecting live, we can leverage AI tools like Teams or to record meetings, capture action items, and ensure that all team members stay informed. By embracing the right technologies, companies can streamline decision-making at the top while equipping local teams with actionable insights. THE PATH FORWARD For insights on achieving this balance, look no further than multinationals that have turned global-local into a playbook for success. McDonald's has mastered the balance of global branding and local appeal. From the McAloo Tikki burger in India to the Teriyaki Burger and McHotDog in Japan, they've shown a keen understanding of regional tastes. The real key to their success lies in giving local teams the authority to make menu and operational decisions, all while maintaining the company's quality standards. Coca-Cola exemplifies the art of tailored marketing campaigns. From personalized cola bottles in Western markets to heartfelt, family-centered campaigns in collectivist Asian cultures, their strategies remain distinct yet unmistakably 'Coke.' These examples underscore the importance of granting autonomy and cultivating trust in local teams—key qualities every global leader should strive to embrace. At the end of the day, balancing a global vision with local execution all comes down to leadership. Great leaders know how to inspire alignment while giving teams the freedom to act independently. At my company, we emphasize clarity of vision while giving our regional teams the autonomy to solve local challenges. How can businesses master the global-local balance? Start small: Focus on building cultural alignment, adopting cutting-edge technology, or empowering your local workforce. Each step toward integrating global aspirations with local realities can yield transformative results. Is your organization ready to rise to the challenge?
