PepsiCo North America Launches “The Hive,” Dedicated to Developing and Nurturing Rising, Trend-Forward, High-Potential Brands in Attractive Growth Spaces
PURCHASE, N.Y., August 16, 2018 – Building on the strength of its industry-leading product development, marketing and go-to-market capabilities, PepsiCo, Inc. (NASDAQ: PEP) announced the creation of The PepsiCo Hive, a new operating entity within the company that will focus on developing and accelerating growth of smaller, emerging brands within PepsiCo’s portfolio with strong consumer potential in high-opportunity segments in North America. The establishment of The Hive assists the company in furthering its Performance with Purpose goals of continuing to transform its portfolio in order to meet changing consumer needs and deliver sustainable, long-term growth.
The Hive will nurture and grow smaller, existing brands within its portfolio including Maker Oats, Stubborn Soda and Looza fruit nectar beverage; new brands in developing, high-opportunity spaces; and inorganic concepts still building momentum and critical mass. The new team will source agile talent both internally and externally to build sustainable value propositionsfor these developing brands, drive scale of operations and distribution over time, and eventually transition brandsinto the larger PepsiCo system once scaled.
“We continue to learn a great deal every single day from our own innovation and experimentation experiences, from unique external partnerships we’ve crafted and from observing entrepreneurial food and beverage companies both large and small. We will channel that experience in this team to act with the agility of a small company, but with access to the knowledge, scale and resources of PepsiCo,” said President of PepsiCo North America Nutrition Seth Kaufman, who will oversee the The Hive in addition to continuing to lead PepsiCo’s North America Nutrition business. “Rapidly adapting to changing consumer needs in a sustainable way includes fundamentally new operating models, and I could not be more excited to launch this important new group for PepsiCo.”
With this announcement, PepsiCo also named Emily Silver to the position of vice president and general manager of the The Hive, reporting to Kaufman. Silver is a strong, established leader who has served in a variety of roles across the company for more than 10 years, enabling product and package transformation to meet changing consumer needs, adopting emerging media platforms, and leading global citizenship and sustainability initiatives.
The new entity will build capabilities to stay ahead of what consumers want, infuse flexibility into operating and distribution models, and leverage best-in-class foresights informed by robust data analytics. The Hive intends to build a robust growth portfolio of new platforms in on-trend and emerging food and beverage spaces, through multiple approaches, including:
- Rapid new product development, iterative prototyping and marketplace deployment, leveraging its world-class R&D talent to delight consumers and incubate new platforms like PepsiCo has done with Stubborn Soda and Maker Oats.
- Using an “open-source” innovation and incubation model with external partners who develop products and propositions on PepsiCo’s behalf and with its guidance.
- Further accelerating select brands acquired through the PepsiCo Ventures Group, which has been investing in and acquiring high-opportunity platforms like KeVita, a leading creator of sparkling probiotic drinks, Kombucha beverages and apple cider vinegar tonics.
“We’re formalizing a venue to embrace the agile mindset of a startup by giving this team independence and leeway to rethink what exists today while still being able to call on the tremendous resources of PepsiCo,” added Kaufman. “This is how we’ll deliver on consumers’ changing preferences and the fast-moving landscape like never before.”
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $63 billion in net revenue in 2017, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose – our fundamental belief that the success of our company is inextricably linked to the sustainability of the world around us. We believe that continuously improving the products we sell, operating responsibly to protect our planet and empowering people around the world enable PepsiCo to run a successful global company that creates long-term value for society and our shareholders. For more information, visit www.pepsico.com.
PepsiCo Cautionary Statement
Statements in this communication that are “forward-looking statements” are based on currently available information, operating plans and projections about future events and trends. Terminology such as “estimate,” “expect,” “may,” “plan,” “position,” “will” or similar statements or variations of such words and other similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward looking statements. Such risks and uncertainties include, but are not limited to: changes in demand for PepsiCo’s products, as a result of changes in consumer preferences or otherwise; changes in, or failure to comply with, applicable laws and regulations; imposition or proposed imposition of new or increased taxes aimed at PepsiCo’s products; imposition of labeling or warning requirements on PepsiCo’s products; changes in laws related to packaging and disposal of PepsiCo’s products; PepsiCo’s ability to compete effectively; failure to successfully complete or integrate acquisitions and joint ventures into PepsiCo’s existing operations or to complete or manage divestitures or refranchisings; PepsiCo’s ability to recruit, hire or retain key employees or a highly skilled and diverse workforce; loss of any key customer or disruption to the retail landscape, including rapid growth in hard discounters and the e-commerce channel; climate change or water scarcity, or legal, regulatory or market measures to address climate change or water scarcity; and other factors that may adversely affect the price of PepsiCo’s publicly traded securities and financial performance.
For additional information on these and other factors that could cause PepsiCo’s actual results to materially differ from those set forth herein, please see PepsiCo’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.