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Thread: Pepsico Buyout

  1. #1
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    Default Pepsico Buyout

    So what's in it for us PAS and PBG guys if this buyout were to happen??? I know the whole deal on how we want more money and it's back to the drawing board for pepsico. I was just wondering what's gonna happen with us front line guys. New products?? Bigger Budgets?? Better Pay?? Anything at all???

  2. #2
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    I would imagine not much changing for frontline employees and I would not bank on better pay. The corp savings would most likely come from the consolidation of common resources like accounting, IT, payroll, insurance, consolidated manufacturing, etc...I'm sure many high level sales jobs will be lost because now you will only need one team/person calling on Walgreens or Target instead of two (one from PAS and one from PBG). I'm sure it will be the same with other departments as well.

    Just my two cents.

  3. #3
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    Mofizz is pretty much on the money..us frontline guys wouldn't see anything immediate but I believe down the line we would see more cooperative sales plans between pepsico companies as a result of such consilidation and our stocks and other assorted monetary investments would as a result benefit but not much I think as a whole.

  4. #4
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    Default

    So do you guys think with all this savings and cosolodation, we could be seeing cheaper prices on pop?? It's getting ridiculous as far as the prices go... higher prices = less sales = less money for us commissioned drivers and sales reps...

  5. #5
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    Default

    Quote Originally Posted by pepsiguy383 View Post
    So do you guys think with all this savings and cosolodation, we could be seeing cheaper prices on pop?? It's getting ridiculous as far as the prices go... higher prices = less sales = less money for us commissioned drivers and sales reps...
    Thats good One!!!! LOL..ha ha ha ......
    The only reason Pepsico wanted PBG in the first place was to add to their shareholders value. Thats were the money goes.
    Cheaper pricing? I dont think so. Pepsico,if the transition ever makes it, will have to service that debt. Layoffs and production cuts will ensue.
    Everyone thought that AB was such a strong brand and worth so much money that InBev would not touch anything and takes a hands off approach and just cash checks.......well not everyone, and then after a few months when everything quieted down what happened? Layoffs and plant closings.
    Whether you think can or think you can\'t, you\'re probably right!

  6. #6
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    I think the penny per ounce on soda will continue to rise as Pepsi and Coke continue to adjust pack sizes and configurations. Think about the beer industry. They have done a great job blurring the lines as to what a "value" is regarding a case of beer at retail while the soda consumer is still thinking that anything over $6 or $7/case is a rip. Even if raw materials drop, and soda prices hold, they will take that margin to the bank for the shareholders just like greg says. This whole PBG/PAS takeover is nothing more than a vary large PepsiCo ROI calculation. I just hope that PepsiCo can think like a bottler rather than a concentrate company after the dust settles on this.

  7. #7
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    Now that we brough up the cost portion, I have a question that I have always wondered... how much does it REALLY cost to make 1 case of 20 oz. bottles or a case of cans??? From production all the way to shipping it to the warehouses???

  8. #8

    Default

    Quote Originally Posted by pepsiguy383 View Post
    Now that we brough up the cost portion, I have a question that I have always wondered... how much does it REALLY cost to make 1 case of 20 oz. bottles or a case of cans??? From production all the way to shipping it to the warehouses???
    Likely between $6.00 and $7.00 per case depending upon transportation costs of raw materials and freight to the selling DC. As far as other costs, you have to account for G&A and Selling Expense to get to the true cost per case.

  9. #9

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    Quote Originally Posted by NRGSLLR55 View Post
    Likely between $6.00 and $7.00 per case depending upon transportation costs of raw materials and freight to the selling DC. As far as other costs, you have to account for G&A and Selling Expense to get to the true cost per case.
    The answer above refers to 20oz bottles.

  10. #10
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    Well ladies and gentlemen, the buyout has occurred... gonna be an interesting next few months I tell ya

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