Snacking continues to win the day for PepsiCo, but its supply chain strategy must improve to meet high demand levels, says GlobalData

Following news that PepsiCo announced a rise in earnings in Q3 2021;

Ramsey Baghdadi, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view:

“Sales from PepsiCo continue to soar, despite ongoing challenges born from COVID-19, as well as its factory disruption this quarter (Q3). The company’s decision to diversify its product range into other categories, especially snacking, has really paid off.

“Even though pandemic restrictions are largely being eased around the world, most people are maintaining their at-home lifestyles, which has strengthened demand for snacking. According to GlobalData’s Q3 survey, 56% of consumers globally have started/will continue to work from home, and—as PepsiCo’s quarterly report findings also note—this leads to demand for larger, variety packaging as people shop in bulk or for family occasions.

“However, the company has noted that profits were negatively impacted by supply chain pressures and labor costs. Long-term, PepsiCo should adopt a more transparent and traceable supply chain. The company should use blockchain throughout the whole value chain, if they respond to the supply chain issues in 2022 and see earnings to continually soar. With this system in place and taken out of its pilot phase, PepsiCo will be able to oversee more activity throughout the supply chain and efficiently adapt to oncoming challenges.”

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