Brand Strategy

PepsiCo is building two divisions to improve its digital chops

The company said these “hubs” will be based in Dallas and Barcelona.
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PepsiCo via Giphy

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PepsiCo might need to start dropping even more $$ into Gatorade’s marketing budget. This week, its rival Coca-Cola scooped up BodyArmor for $5.6 billion, a move that’ll help Coke take on the queen bee of the sports drink world—according to Euromonitor data cited by CNBC, Gatorade holds more than two-thirds of the category’s market share in the US.

Will the sports-drink wars replace the chicken-sandwich wars? Who knows. We do know, though, that PepsiCo’s been busy marketing some of its other items as of late—and building two “digital hubs.”

  • PepsiCo is promoting four of its snacks, including Ruffles and Tostitos, in an ad starring Eli Manning that’s geared toward Mexican football fans. It also released a campaign for its water bottle brand Lifewtr this week featuring Doja Cat.
  • Last week, the company revealed details about hubs it’s establishing in Dallas and Barcelona. According to PepsiCo, these divisions will focus on “digital capabilities” like AI and machine learning. The Wall Street Journal said PepsiCo plans to hire hundreds of people, including marketers, to staff these hubs.

Earnings: PepsiCo’s organic revenue went up 9% in Q3, even as it grapples with supply-chain woes.

Friday read: Last month, PepsiCo’s former CEO Indra Nooyi talked to the New York Times about corporate responsibility—and the infamous Kendall Jenner ad.—MS

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