{"id":14584,"date":"2020-10-22T09:59:14","date_gmt":"2020-10-22T14:59:14","guid":{"rendered":"https:\/\/csuiteold.c-suitenetwork.com\/advisors\/?p=14584"},"modified":"2020-10-22T09:59:14","modified_gmt":"2020-10-22T14:59:14","slug":"a-house-of-brands-or-a-branded-house-lessons-on-branding-sustainability-and-culture-from-the-global-cmo-pepsico-foodservices","status":"publish","type":"post","link":"https:\/\/csuiteold.c-suitenetwork.com\/advisors\/a-house-of-brands-or-a-branded-house-lessons-on-branding-sustainability-and-culture-from-the-global-cmo-pepsico-foodservices\/","title":{"rendered":"A House Of Brands or a Branded House? Lessons on Branding, Sustainability, and Culture from the Global CMO PepsiCo Foodservices"},"content":{"rendered":"

A brand is nothing but a promise delivered. I shared this in my first book, The Mirror Test<\/strong><\/a> and it remains true today. Recently, I had the opportunity to address this with the Global Chief Marketing Officer at PepsiCo Foodservice<\/a><\/strong>, Scott Finlow, during a recent C-Suite Network<\/a><\/strong> Digital Discussion interview<\/a><\/strong>.<\/p>\n

Throughout the years, PepsiCo\u2019s culture remains relevant and I love how they\u2019ve kept that consistency, specifically how they have leveraged amazing brands and successfully kept them connected to their customers. But, here\u2019s the question — is it a house of brands or a branded house?<\/p>\n

Finlow has an impressive background in the industry, but he told me that what attracted him to PepsiCo was the \u201camazing portfolio of brands.\u201d What\u2019s more recognizable than the Pepsi logo worldwide? Not very many things. PepsiCo is an overarching brand — a group of $23 billion brands from around the world. While they may have a food or beverage business that operate separately in some aspects, in the customer\u2019s eyes, they are one. \u201cBringing those brands together is a critical component of how the value of PepsiCo is demonstrated,\u201d Scott said.<\/p>\n

In fact, the brand is the number one supplier in North America \u2013 up from number three a few years back. \u201cPart of it is the power of the brand, part of it is coming together,\u201d Scott added. Under the PepsiCo umbrella — all people, data, services, have come together seamlessly, despite being run as a decentralized organization.<\/p>\n

It\u2019s the nature of the beast \u2013 centralize, then decentralize, as it will change in 6 months. What\u2019s the secret of their success? The empowerment of the talented people tasked with running each sector.<\/p>\n

\u201cNationally great and locally even better\u201d \u2013 that\u2019s their ongoing dynamic and it\u2019s what makes them feel good about where they are, according to Scott. He added, \u201cFinding that balance between building capabilities is an ongoing dynamic in a lot of businesses, including ours.\u201d<\/p>\n

With big powers, come big responsibilities.<\/p>\n

PepsiCo\u2019s sustainability efforts are also a source of pride for them. They have a set of goals they want to enact by 2025, but the efforts aren\u2019t as simple as wanting to be more sustainable. He threw an impressive figure to prove his point \u2013 75 percent of consumers think recycling is harder than doing their taxes. \u201cConsumers expect us to be part of the solution and help out,\u201d Scott said. He continued, \u201cWe believe strongly that you can do good and do well as a business.\u201d<\/p>\n

These directives don\u2019t live in a vacuum \u2013 but they come down straight from the top. Their shareholders play an integral role in the company\u2019s sustainability efforts. For them, it\u2019s a simple equation, improve shareholder results by increasing sustainability; it\u2019s not a trade-off. The proof is in the numbers and their stock prices. Scott says that \u201cIn the end, it\u2019s all circular. If you think of plastic as a packaging component, you have to make sure we\u2019re investing in that entire ecosystem.\u201d Basically, sustainability is good for business. It drives stock prices up, gives the brand more notoriety in the sustainable ecosystem, and the customers reward you with their loyalty. It is truly a full circle.<\/p>\n

Like every other business out there, PepsiCo has been touched by the effects of COVID. With foodservice representing 20 percent of their total business, a $5 billion business, Scott describes \u201cfoodservice\u201d as \u201cwhere you are when you are not at home,\u201d which translates to stadiums, restaurants, schools, theaters, etc. It\u2019s obvious that industry has taken a huge hit; however, Scott is proud of the way the company responded to help \u2013 not just their own employees, but the communities they serve.<\/p>\n

The first thing they did was look after their own people in the frontlines \u2013 those in stores and those serving others. Scott says they\u2019ve come closer as a result of these efforts. The next thing they did was pivot to meet their customers\u2019 needs, especially around deliveries. They have partnered with the Great American Takeout and Drinks On Us, a part of the Global Citizen program. PepsiCo has also raised money, $24 million, by partnering with Guy Fieri<\/a> and the National Restaurant Association<\/a>.<\/p>\n