Over-dependence on Carbonated

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However, there is a lot of work that needs to be done before PepsiCo can change its harmful food and drink perceptions. PepsiCo’s Involved in Numerous Lawsuits PepsiCo and one of its biggest rivals, Coca-Cola, have been involved in many legal battles. Although this is expected from big brands like Pepsi, lawsuits can be damaging to a company’s reputation, especially in the eyes of the consumers and the company’s investors.


For instance, in 2020, a California environmental group sued both Pepsi investors email lists and Coca-Cola for creating plastic pollution and misleading consumers about their plastic products’ sustainability (more specifically, recyclability). Another lawsuit against PepsiCo involved claims that the company’s Naked Juice products were falsely labeled as “all-natural” when, in reality, they contained synthetic ingredients. PepsiCo ultimately settled this lawsuit for $9 million in 2013. Such cases hurt PepsiCo’s image and credibility, putting a strain between the company, its customers, and its investors.


Drinks Although PepsiCo has an extensive portfolio of drinks and food products, it tends to depend on its carbonated drinks as its chief revenue generator. According to one report, PepsiCo makes about 30% of its revenue from sales of North American beverages. This percentage represents its highest revenue segment, closely followed by its sales in Frito-Lay. However, this is one of the company’s most significant weaknesses, as trends indicate that the demand for carbonated soft drinks has slowly been declining over the years as consumers have opted for healthier beverages.