Data-Driven Beverage Revolution: An Examination into PepsiCo's Journey in the European Market

The European Soft Drinks segment achieved a substantial revenue of €158.70 billion in 2023, with a projected annual growth rate of 3.01% (CAGR 2023-2027) ^[1]. Within this dynamic market, PepsiCo stands as a prominent player, holding a leading position as one of the world's largest manufacturers in the beverage industry. In 2020, Pepsi's brand value exceeded $18.2 billion, with its beverages contributing to 46% of the company's revenue ^[2].

With the digital transformation reshaping consumer habits, online channels, particularly food delivery platforms, have become crucial avenues for manufacturers to capture market share of the European carbonated soft drink. Recognizing the significance of this shift, PepsiCo swiftly adapted its strategy to embrace the evolving landscape by  strategically entering the digital space. This article delves into data of three of PepsiCo’s most recognizable brands - Pepsi (Regular), Pepsi Max, and 7UP - and explores their presence as well as gaps on food delivery platforms in three European countries - Spain, France, and Poland. By leveraging Dashmote’s data analytics SaaS platform, we examine how PepsiCo has navigated food delivery by expanding its online product listings in these countries, thereby extending its reach to European consumers' virtual doorsteps.

Before delving into the presence of PepsiCo’s core beverages on food delivery platforms, it’s important to begin with a broader overview of the beverage industry. According to Dashmote's data, the digital storefronts selling beverages vary significantly across three countries. France stands out with the highest beverage penetration rate, where up to 87.5% of the 148K digital storefronts on French food delivery platforms list beverages on their menu. Spain follows closely with a beverage penetration rate of 73%, while Poland has the lowest rate at 66.3% and the smallest number of digital storefronts (39K) on food delivery platforms.

Correspondingly, PepsiCo is largely present on French food delivery platforms, with 38.5% of all digital storefronts listing a PepsiCo product. This is followed closely by Poland, with a PepsiCo penetration rate of 36%. In Spain, there are a lot of opportunities for PepsiCo to grow, where around 19% of all DSFs on food delivery list at least one PepsiCo beverage. 

PepsiCo boasts a diverse portfolio of brands, each carefully tailored to cater specific audiences. Pepsi Regular caters to those seeking a bolder taste with an extra burst of flavour, while Pepsi Max appeals to health-conscious individuals in search of a low-calorie option. By having a diverse product listing on food delivery platforms, PepsiCo can enhance its brand reach and visibility. Therefore, analysing the presence and identifying potential gaps in product listings of core brands can provide PepsiCo with a competitive advantage in an increasingly fierce marketplace.

According to Dashmote's data, the presence of PepsiCo core brands varies across different countries. In Poland and Spain, Pepsi Regular reigns as the most listed PepsiCo beverage on food delivery. In Poland, a significant 89% of digital storefronts that offer PepsiCo products sell Pepsi Regular,  while the figure is 53% in Spain. Interestingly, in France, the most listed PepsiCo beverage is 7UP, present in 43.2% of digital storefronts listing PepsiCo products, whereas Pepsi Regular constitutes only 26.3%.

The presented graph demonstrates substantial opportunities for PepsiCo across all three markets, where many digital storefronts have yet to include their core brands discussed in this article. By leveraging data to identify and address gaps in product listings, PepsiCo could enhance overall product availability, optimise revenue potential and gain a competitive edge in the market.

According to Dashmote's data, in Poland PepsiCo’s performance is great with 34.6% of all digital storefronts that list at least one PepsiCo beverage, are listing Pepsi Regular, Pepsi Max and 7Up on their menu. Spain and France on the other hand have the highest potential for cross-selling their core products, where respectively 15% and 8% of all DSFs that list PepsiCo beverages, list all the three core brands. This indicates significant growth potential for all three markets, as there is still ample room for further expansion in listings.

By making all PepsiCo brands readily available on food delivery platforms (which can range beyond the three brands that are referenced in this article), PepsiCo can strategically capitalise on significant growth potential and aims for market dominance. This move is especially advantageous as Millennials and Gen Z, the primary target demographics for Pepsi, highly value convenience, time-efficiency, and seamless experiences. By seamlessly integrating its brands into food delivery services, Pepsi can align its marketing strategy with these preferences, presenting a compelling proposition to convenience-oriented consumers and leaving a lasting impression of its products in their minds. This strategic alignment can lead to increased consumer engagement and foster long-term brand loyalty.

Dashmote is dedicated to assisting enterprises in overcoming obstacles and achieving success in the digital market. As the foremost provider of big data and AI analytics solutions in the food and beverage (F&B) sector, we enable brands to make informed strategic choices by offering thorough analysis and invaluable insights into the food delivery market and F&B trends. Interested in taking your online business to the next level? Please reach out to our team at sales@dashmote.com. Together, we can establish a robust online footprint for your Food & Beverage enterprise.

If you find this article valuable, you may wish to check out more of our blog articles on Pepsi, such as the battle between Coca-Cola and Pepsi in the UK or local VS. global cola in India.