PEPSICO BEVERAGES NORTH AMERICA OPENS NEW WAREHOUSE IN GREATER MILWAUKEE AREA TO SERVICE CUSTOMERS AND MEET GROWING CONSUMER DEMAND ACROSS 4 COUNTIES

Rhea-AI Summary

PepsiCo Beverages North America (PBNA) announced a new 150,000 square foot warehouse in Lisbon, WI, with 260+ employees to meet growing demand across Washington, Ozaukee, Waukesha, and Milwaukee counties. The facility features 95% new equipment, including tractors, trailers, pallet jacks, and forklifts, with enhanced energy efficiency. The company's Geo Box delivery system replaces traditional bay delivery trucks, reducing vehicles, miles driven, and fuel used. PepsiCo also invested over $4.8 million with diverse suppliers in Wisconsin and donated over $750,000 to various community initiatives, including scholarships and support for breast cancer patients.

Insights

Market Research Analyst

From a market research perspective, the establishment of PepsiCo's new warehouse in Lisbon, WI, is a strategic move designed to optimize distribution and meet increasing regional demand. This investment signifies a commitment to enhancing logistical efficiency, which is paramount in the beverage industry where product turnover and delivery speed are critical factors. The introduction of 95% new equipment and the Geo Box delivery system suggests a push towards modernization that could reduce operational costs and environmental impact, potentially improving PBNA's competitive edge in the market.

The investment in community programs, such as the PepsiCo Foundation Uplift Scholarship program, also reflects a corporate social responsibility strategy that may resonate positively with consumers. By aligning its brand with community support and sustainability, PepsiCo could strengthen its regional market presence and foster customer loyalty, which can indirectly influence stock performance through enhanced brand value and reputation.

Financial Analyst

Analyzing the financial implications of PepsiCo's new facility, the capital expenditure on state-of-the-art equipment and the warehouse itself is a long-term investment that may affect short-term cash flows. However, the potential for increased operational efficiency and energy savings could lead to reduced costs over time. The impact on the stock market will likely be observed through future earnings reports, where investors will seek evidence of cost savings and revenue growth from enhanced distribution capabilities.

The investment in diverse suppliers and local community initiatives may also be a strategic move to foster a more inclusive supply chain, which can appeal to socially conscious investors. The financial contributions to community programs, while not directly impacting the bottom line, could indirectly benefit the company by creating a more skilled local workforce and improving the company's public image.

Sustainability Expert

The announcement of PepsiCo's new warehouse with a focus on energy efficiency and reduced fuel usage through the Geo Box delivery system aligns with broader industry trends towards sustainability. The integration of advanced safety features and energy-efficient equipment is not only a corporate responsibility initiative but also a response to increasing consumer and regulatory demands for environmentally friendly business practices.

These sustainability measures can have long-term financial benefits, such as eligibility for tax incentives, lower energy costs and a reduction in potential regulatory penalties. Moreover, they may enhance the company's reputation among environmentally conscious consumers, potentially impacting consumer behavior and market share. The long-term impact on the stock market could be positive if these initiatives lead to tangible improvements in cost efficiency and brand loyalty.

Company invests in new state-of-the-art facility, equipment and community programs

PURCHASE, N.Y., Jan. 31, 2024 /PRNewswire/ -- Today, PepsiCo Beverages North America (PBNA) announced a brand-new 150,000 square foot warehouse in Lisbon, WI, a regional hub with 260+ employees who will help meet growing demand across Washington, Ozaukee, Waukesha and Milwaukee counties and keep store shelves and long-term customers like Summerfest stocked with Pepsi, Pepsi Zero Sugar, MTN DEW, Aquafina, Gatorade, Lipton, Starbucks, Rockstar, Celsius, Tropicana, Dole, Naked Juice and more.

With a presence in the area for 60 years and more than 2,200 employees in the state, PepsiCo Beverages North America continues to enhance its local business operations, innovate to serve local customers and team up with leading community organizations.

Predicting future growth in the area, PBNA built the new Lisbon warehouse to meet demand with maximum efficiency including enhanced energy efficiency. It boasts 95% new equipment including tractors, trailers, pallet jacks and forklifts which allow local employees to work efficiently, with the latest safety features and more energy efficiency. PBNA Lisbon also features the company's Geo Box delivery system, which replaces traditional bay delivery trucks with specially designed trailers that are pre-loaded at the warehouse to deliver the right quantity and assortment of beverages to local retail customers in a more efficient and timely manner, which also reduces the number of vehicles, miles driven and ultimately fuel used.

"Milwaukee has been home to PepsiCo and hundreds of our talented employees for decades and we're pleased to build on that history by investing in this state-of-the-art Lisbon facility to serve even more neighbors," said Neil Pryor, Central Division President, PepsiCo Beverages North America. "We deeply appreciate our local partners and team members who make Milwaukee a vibrant community in which we are proud to grow."  

PBNA continues to build on its rich history in the state. In 2022 alone, PepsiCo spent more than $4.8 million with diverse suppliers in Wisconsin and the company and The PepsiCo Foundation gave more than $750,000 to various WI community initiatives including to Southeast Wisconsin Susan G. Komen and a recent grant to Casa Esperanza in Waukesha County. The PepsiCo Foundation is investing $500,000 to the Milwaukee Area Technical College Foundation for the PepsiCo Foundation Uplift Scholarship program which aims to provide 160 students with $2,000 scholarships over two years. In addition to financial assistance, the program provides scholarship recipients access to dedicated success coaches, emergency grants and financial literacy courses all with the goal to help them gain employment in high-demand fields which the company is also supporting with a partnership with Employee Milwaukee which offers financial support, job exposure and hiring opportunities to neighbors.

"Saving lives by supporting vital research and our most vulnerable local breast cancer patients is an enormous mission and progress is only possible through full, unwavering partnerships like ours with the PepsiCo Milwaukee team," said Robin Luther, Director of Development Wisconsin at Susan G. Komen. "From sponsoring our annual walk and fundraising gala, to providing employee volunteers and grants, to donating beverages, PepsiCo leans in with dedication in all the ways we need and treat us and thousands of Wisconsin breast cancer patients like their own family." 

Stay up to date on the latest PepsiCo news and products by visiting pepsico.com and following @pepsico on X, Instagram and Facebook.

About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $86 billion in net revenue in 2022, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X, Instagram, Facebook, and LinkedIn @PepsiCo.

Contacts:	Investors		investor@pepsico.com
	Media		pepsicomediarelations@pepsico.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/pepsico-beverages-north-america-opens-new-warehouse-in-greater-milwaukee-area-to-service-customers-and-meet-growing-consumer-demand-across-4-counties-302048165.html

SOURCE PepsiCo, Inc.

FAQ

What is the new facility's location?

The new facility is located in Lisbon, WI.

How many employees will work at the new facility?

The new facility will have 260+ employees.

What is PepsiCo's ticker symbol?

PepsiCo's ticker symbol is 'PEP'.

What products will be stocked at the new facility?

The new facility will stock Pepsi, Pepsi Zero Sugar, MTN DEW, Aquafina, Gatorade, Lipton, Starbucks, Rockstar, Celsius, Tropicana, Dole, Naked Juice, and more.

What is the PepsiCo Foundation Uplift Scholarship program?

The PepsiCo Foundation Uplift Scholarship program aims to provide 160 students with $2,000 scholarships over two years, along with access to dedicated success coaches, emergency grants, and financial literacy courses.