Business Casual: Pepsi Pops the Top on Online Snacking

 

During the coronavirus crisis, the divide between online and brick and mortar businesses widened rampantly, amplifying gains for companies that catered to their customers online. And as online purchases continued to gain exponential momentum during these uncertain times, countless companies that relied on in-person browsing were compelled to make a digital shift just to survive. Today, many are wondering if this transformation to digital commerce is a precursor to a long-term trend that could last long after the health crisis is over. Well, snack-and-beverage-giant PepsiCo is banking on it.

On this Business Casual segment, hosts Taylor Bagley, Tyler Kern and Daniel Litwin discuss Pepsi’s recent purchase of both the Snacks.com and PantryShop.com domains, adding direct-to-consumer services to their product offering which not only ensures customers are connected promptly with the Pepsi snacks and beverages they love—minus the middleman (Amazon, curbside and pickup grocery service, etc.)—but allows the company to boost cashflow and control advertising via their own platform.

Kern, Bagley and Litwin weigh the pros and cons of Pepsi’s unprecedented move to eCommerce channels:

  1. Is the 10% boost in Pepsi’s earnings last month just in response to a pandemic snack-boom, or will the new platforms be worth the upkeep involved?
  2. Will this approach offer a truly more convenient way to eat snacks, or will the company’s promised 2-day delivery hinder the consumer’s desire for the immediate gratification snacking usually entails?
  3. Is the launch just a power-grab, or is this a long-term strategy for more market gain?
  4. How does this move impact logistics and the foodservice industry as a whole?

Keeping you informed of the newest trends and the hottest topics in B2B, tune into the Business Casual podcast each Wednesday and Friday. And for the latest thought leadership, news and event coverage across B2B, be sure to check out our industry pages.

For the latest news, videos, and podcasts in the Food & Beverage Industry, be sure to subscribe to our industry publication.

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