PepsiCo is focused on brand-building and spent $3.9 billion, or 5.9%, of its total revenue on advertising and marketing in 2013.
PepsiCo Inc. (PEP) is the market leader in the US snack food business. The company derived 52%, or $34.5 billion, of its 2013 revenues from its food business.
PepsiCo Inc. (PEP) and The Coca-Cola Company (KO) are the two behemoths of the liquid refreshment beverage industry. Because of continually declining carbonated sales volumes, PepsiCo is looking to expand into healthier beverages.
Among all of PepsiCo’s segments, the Frito-Lay North America segment is the most profitable, accounting for about 21% of total revenues.
PepsiCo’s products reach the market through three channels: direct store delivery (or DSD), customer warehouse, and third-party distributor networks.
In a scenario where soda drinks have been continually declining, PepsiCo’s significant presence in the snack food category gives it an edge over its closest rival, The Coca-Cola Company (KO).
According to Information Resources, Inc. (or IRI), PepsiCo owns nine of the 40 largest packaged goods trademarks in the United States.
The markets responded with confidence when Tyson Foods announced 4Q14 earnings. Not a single analyst had a “sell” rating on the company.
In 2014, Tyson acquires Hillshire Brands for $8.5 billion and announces the sale of its divisions in Brazil and Mexico to JBS for $575 million.
Agencies regulating Tyson Foods include the United States Department of Agriculture, the Food and Drug Administration, and others.
Tyson Foods Beef revenues increased 12% to $16 billion year-over-year in 2014. Margins also increased a bit, by ten basis points, or 0.10%, year-over-year.
Tyson Foods corn and soybean costs represent 68% of the company’s total Chicken segment costs. Its other segments aren’t vertically integrated.
Tyson Foods customers are a diversified lot. They’re spread across 130 countries. Only Wal-Mart represented more than 10% of the company’s 2014 sales.
The Tyson Foods product portfolio includes a variety of products such as value-added chicken, beef, and pork, pepperoni, pizza crusts, and much more.
Tyson Foods Production Capacity includes facilities for each of its segments. In the Chicken segment, Tyson operates facilities for each production stage.
The Tyson Foods Prepared Food segment markets frozen and refrigerated products. It generated $3.9 billion, or ~10% of total company revenues in fiscal 2014.
The Tyson Foods Pork segment processes live hogs into primal, sub-primal cuts, case-ready pork ready to be sold at retail stores, and fully cooked products.
Vertical integration involves a single company owning and controlling all the various stages in the production chain.
The Tyson Foods Beef segment includes processing live cattle and fabricating the beef carcass. This segment is not vertically integrated.
Tyson Foods revenue is reported in five segments: Beef, Chicken, Pork, Processed Foods, and International. The Beef segment accounted for 43% of revenues.