Interesting story this morning in the Wall Street Journal about one of the ways in which PepsiCo has become a global presence in the snack business – it became a farmer.
The company now owns two potato farms in China, as well as “budding potato programs in Russia, Poland and South Africa. The company also helps farmers grow corn for chips in Egypt, oranges for juice in India and plantains for chips in Colombia.” This allows Pepsi to not just become a valued member of the communities and countries where it has such operations, but also to exercise greater control over its supply chain and to keep costs in line.
The company now owns two potato farms in China, as well as “budding potato programs in Russia, Poland and South Africa. The company also helps farmers grow corn for chips in Egypt, oranges for juice in India and plantains for chips in Colombia.” This allows Pepsi to not just become a valued member of the communities and countries where it has such operations, but also to exercise greater control over its supply chain and to keep costs in line.
- KC's View:
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We just thought this was interesting because it demonstrates how companies that want to be leaders actually have to show leadership – and sometimes that means taking the business model into new and unexpected directions.
Good lesson.
