With E-Com Sales Nearly Doubling, PepsiCo to Get Granular

Lisa Johnston
Senior Editor
Lisa Johnston profile picture
PepsiCo launched its and direct-to-consumer sites this spring.

In reporting a positive third quarter with organic revenue growth of 4.2%, PepsiCo confirmed the company will continue to invest in its digital initiatives to grow and scale its burgeoning e-commerce business.

Its e-commerce segment nearly doubled during the quarter, said Ramon Laguarta, chairman and CEO, who noted that key company priorities include investing in data analytics for more granularity around consumer insights.

The company launched two direct-to-consumer sites in the spring — and — as “an attempt for us to stay closer to the consumer, read them, understand reaction to early innovation, and then obviously take mainstream into the balance of the channels,” Laguarta said in an earnings call.

And while the category represents a small percent of overall sales for the No. 3 consumer goods company, the insights received are deemed very valuable and will inform strategies moving forward.

“We plan to obviously scale them up a little bit, and get better at reading consumers early, test and learning with our innovation, and also improving the way we segment consumers,” Laguarta noted. “We have prototypes of consumers that we can innovate and talk to in our communication.”

In addition to enabling testing and learning from consumers, selling direct-to-consumer also lets the company increase exposure for some of its niche brands, Gibu Thomas, PepsiCo senior VP and head of e-commerce, told CGT in May.

More on Consumer Analytics

  • 3 Ways PepsiCo is Preparing for the Future Consumer and Generating Smiles

    Many consumers know what PepsiCo is, and what it does, but they may not know why they do it. According to Jeff Swearingen, SVP-Demand Accelerator, PepLabs & GBS, “What I would tell them is that at PepsiCo, we really exist to create smiles.” Here, he tells CGT why.
    a person posing for the camera
  • Visual Effectiveness: AI Reveals A Driving Force Behind White Claw’s Hard Seltzer Takeover

    In the past three years, the hard seltzer market has grown tenfold, from ten brands in 2018 to now more than 100 brands, with one brand rising to the top: White Claw. Here's how its growth could have been predicted with AI visual intelligence.
    text, whiteboard
  • How Diageo Drives Digital Conversions for Brands Like Baileys & Johnnie Walker

    While most of today's consumer goods brands are all-in on growing digital sales, things are a bit trickier for the alcohol beverage category.
    a close up of a laptop computer sitting on top of a wooden table