Who Owns Pepsi? PepsiCo owns the Pepsi brand. PepsiCo is a multinational food and beverage company that was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay. It is one of the largest food and beverage companies in the world. As a multinational food and beverage company, PepsiCo has a diverse portfolio of products beyond the Pepsi brand.
Its product range includes various carbonated soft drinks, juices, snacks, and other food and beverage items. Some of the well-known brands under the PepsiCo umbrella include Mountain Dew, Lay’s, Gatorade, Tropicana, Quaker Oats, and many others. Each shareholder of PepsiCo has an ownership stake in the entire company and all the brands that fall under the PepsiCo umbrella, including the iconic Pepsi brand.
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Individual Shareholders of Pepsi
The only individuals who can legitimately claim ownership of Pepsi are the shareholders of PepsiCo, which is the parent company of the Pepsi brand. However, it is important to note that individual shareholders hold a tiny percentage of the total outstanding shares in PepsiCo. All individual shareholders of PepsiCo hold less than 0.6% of the company’s outstanding shares. Hence, no single individual holds a significant percentage of the company’s outstanding shares.
Top Institutional Shareholders of Pepsi
Here are the top institutional Shareholders of PepsiCo:
Vanguard Group, Inc.
The Vanguard Group owns 9.04% of PepsiCo shares worth $23.77 billion. Vanguard Group is one of the world’s largest investment management companies. It was founded in 1975 and is headquartered in Malvern, Pennsylvania, United States. Vanguard is known for its low-cost index mutual funds and exchange-traded funds (ETFs). The company operates on a unique client-owned structure, which means that the investors in Vanguard funds are the owners of the company. This structure helps to align the interests of Vanguard with its clients.
Vanguard offers a wide range of investment products and services, including equity funds, bond funds, money market funds, target-date funds, and retirement accounts. The company is known for its emphasis on passive investing and its commitment to keeping costs low for investors. Vanguard has a strong reputation for providing long-term investment solutions and has accumulated a large and loyal client base over the years.
BlackRock, Inc.
BlackRock owns 4.98% of PepsiCo’s outstanding shares, worth $13.09 billion. BlackRock is the world’s largest asset management company, based in New York City, United States. It was founded in 1988 and has grown to become a global leader in investment management, risk management, and advisory services. BlackRock offers a diverse range of investment products, including mutual funds, ETFs, hedge funds, and alternative investments.
The company is known for its expertise in both active and passive investment strategies. BlackRock manages portfolios for institutional clients, such as pension funds, sovereign wealth funds, and corporations, as well as individual investors. The firm also provides investment technology and risk management solutions to financial institutions worldwide.
State Street Corporation
State Street Corporation owns 4.33% of PepsiCo’s outstanding shares, worth $11.38 billion. State Street Corporation is a leading financial services holding company based in Boston, Massachusetts, United States. It was founded in 1792 and is one of the oldest financial institutions in the United States. State Street operates through its subsidiaries, providing a range of investment management, investment servicing, and trading services to institutional investors.
The company is well-known for its role as a custodian bank, providing custody and safekeeping services for the assets of its institutional clients, including asset managers, pension funds, and insurance companies. State Street also offers investment management services, including ETFs and other investment funds.
Geode Capital Management, LLC
Geode Capital Management owns 1.86% of PepsiCo’s outstanding shares, worth $4.89 billion. Geode Capital Management is an investment management firm based in Boston, Massachusetts. It is a subsidiary of Fidelity Investments and was established in 2001. Geode primarily focuses on managing index-based strategies and serves as the investment advisor to the Fidelity family of index mutual funds.
Geode’s investment approach is centered around indexing, aiming to replicate the performance of specific market indices. The firm utilizes quantitative methods and sophisticated analytics to construct and manage portfolios that closely track the targeted indices. Geode manages assets for a variety of clients, including institutional investors, pension funds, and individual investors through Fidelity’s mutual funds.
History of Pepsi Brand
The history of the Pepsi brand begins in the late 19th century when Caleb Bradham, a pharmacist from New Bern, North Carolina, invented a carbonated beverage called “Brad’s Drink” in 1893. Recognizing its potential, Bradham renamed the drink “Pepsi-Cola” in 1898, incorporating pepsin and kola nuts into the recipe. In 1902, Bradham established the Pepsi-Cola Company as a way to commercialize his invention. Initially, Pepsi-Cola gained popularity locally, but it soon expanded its reach by establishing bottling franchises across the United States.
Despite early success, Pepsi-Cola faced financial challenges during the Great Depression and filed for bankruptcy in 1931. The ownership of the company changed hands, and Charles Guth, the President of Loft Inc., a candy manufacturer, eventually acquired it.
Following World War II, Pepsi embarked on a marketing campaign known as the “Pepsi Generation.” The brand targeted younger consumers, emphasizing its youthful image through catchy slogans and iconic advertising campaigns. The rivalry between Pepsi and Coca-Cola, known as the “Cola Wars,” intensified in the 1970s and 1980s. Pepsi introduced the “Pepsi Challenge,” a series of blind taste tests where participants preferred the taste of Pepsi over Coca-Cola. This campaign helped position Pepsi as the preferred cola.
In 1965, Pepsi-Cola merged with Frito-Lay, a snack food company, to form PepsiCo. This merger allowed PepsiCo to diversify its product portfolio and expand its presence in the food and beverage industry. Over the years, PepsiCo continued to innovate and introduce new products under the Pepsi brand.
This included the introduction of Diet Pepsi in 1964, Pepsi Max in 1993, and PepsiCo’s acquisition of Tropicana in 1998. PepsiCo also expanded its global footprint, establishing a solid presence in international markets. It formed partnerships, acquired local brands, and launched marketing campaigns tailored to different regions, contributing to the brand’s global recognition.
In recent years, PepsiCo has continued to evolve its product offerings, introducing healthier options, such as Pepsi Zero Sugar and various flavored variants. The brand has also focused on sustainability efforts, including initiatives to reduce plastic waste and promote recycling.
Today, Pepsi remains one of the world’s most recognized and consumed beverage brands, offering a wide range of carbonated soft drinks, juices, teas, and snacks under the PepsiCo umbrella. Its rich history and ongoing innovation have solidified its position as a global leader in the beverage industry.
How Much is PepsiCo Worth?
The value of the Pepsi brand alone does not solely determine PepsiCo’s net worth. Instead, its worth is a cumulative result of its diverse brand portfolio. The Pepsi brand alone has a net worth of approximately $20 billion. However, PepsiCo’s net worth as of May 2023 is $263.91B. It’s important to note that PepsiCo’s net worth is a reflection of its overall financial strength, market capitalization, and the cumulative value of its extensive brand portfolio.
Pepsi, the flagship brand, stands as an emblem of refreshment and has become an icon in the beverage industry. From the classic Pepsi cola to Diet Pepsi, Pepsi Zero Sugar, and Pepsi Max, this beloved brand has captured the hearts and taste buds of consumers around the globe. Its brand recognition and customer loyalty have significantly contributed to the overall net worth of PepsiCo.
Conclusion
The ownership of Pepsi, as a brand and a company, primarily lies with the shareholders of PepsiCo. PepsiCo’s ownership structure is characterized by a dominance of institutional investors, including mutual funds, pension funds, and other financial institutions. These institutional investors recognize the value and potential of PepsiCo’s diverse brand portfolio and contribute to the brand’s overall net worth through their substantial investments.