Investing in serving e-commerce
PepsiCo is investing in making changes to its snacks and beverage businesses to capitalize on the growth of e-commerce.
“We want to make sure that our snacks are more shippable, not just in click and collect, but more also for deliveries so that the cube efficiency is there,” Ms. Nooyi said. “And on beverages, I think there are two issues: One, is the cold delivery of the beverages if consumers so desire ice-cold beverages delivered to them, which I find it hard to believe, but you can never tell. And then how do we make sure that we address this whole delivery of water because beverages are largely water. So we are looking at meaningful innovation, both in snacks and beverages, in order to address the exploding growth of e-commerce.”
Many of PepsiCo’s products are impulse-buy oriented at brick and mortar, but Ms. Nooyi sees potential in those products achieving growth on-line.“I think the whole e-commerce area is going to be impulse as you see it in a brick-and-mortar store, which then translates to e-commerce and it becomes part of a replenishment cycle,” she said. “We've seen so many virtual reality tools right now. You can actually simulate grocery stores or whatever version of a grocery store you want on-line. And you can easily navigate the aisles, and just with a click, shop for whatever you want. So, I think in an interesting way, there's infinite possibilities to create impulse all through technology on-line.”