PepsiCo allocates GOP tax plan savings to e-commerce, digital investments

PepsiCo announced that it will invest some of the millions of dollars it is saving from the new GOP tax plan into adding new e-commerce and digital capabilities to become more competitive, according to a company statement regarding its Q4 earnings.

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E-commerce is a $1 billion business for the company, Business Insider reports. Impulse buys make up for 30% of all beverage purchases, which is causing analysts to worry that soft drink companies are unprepared for the growth of e-commerce.

PepsiCo reported Q4 net revenues totaling $19.5 billion. The company is also planning to invest its tax savings in worker training, cash returns for shareholders and $100 million in employee bonuses.

Dive Insight:
For PepsiCo, e-commerce could boost its existing digital recipe strategy. The company’s website has a landing page dedicated to recipes that includes some its products as ingredients, such as Pepsi Jerk Chicken and Pumpkin Dip. PepsiCo also recently ran a Super Bowl promotion, “Game Day Grub Match: Athlete Face-Off,” in which featured three former NFL players competing in culinary competition using the brand’s ingredients, such as Doritos to Tropicana, Sabra hummus to Naked Juice, Tostitos to Quaker Oats. Giving consumers a way to easily order ingredients for recipes that appeal to them could make sense as more consumers research meals online and look for ways to simplify grocery shopping.

A number of national brands have also started to look to e-commerce as a way to test interest levels in new products before introducing them in stores and to offer their biggest fans limited-edition items. Mondelez’s Oreo has been one of the most active in this area.

Read more at Marketing Dive: https://www.marketingdive.com/news/pepsico-allocates-gop-tax-plan-savings-to-e-commerce-digital-investments/517051/

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