PepsiCo, Inc. (NASDAQ:PEP) is included among the Dividend Kings and Aristocrats List: 32 Biggest Stocks.
ja-san-miguel-xYSp0kkIUio-unsplash
On March 23, Bloomberg reported that PepsiCo, Inc. (NASDAQ:PEP) is managing geopolitical and cost pressures by sourcing about 95% of its ingredients locally, according to Asia Pacific CEO Anne Tse. She said the company also uses hedging strategies for key commodities.PepsiCo works closely with local growers, especially for potatoes, which helps strengthen its supply chain. Tse described this approach as making the company “very resilient” on the upstream side.
The company is also using artificial intelligence across its operations in China and other markets to improve efficiency. Tse said AI is being applied in areas such as precision agriculture, manufacturing management, and consumer analytics. This allows the company to expand capacity without adding staff at the same pace. Even so, PepsiCo continues to hire in China as it opens new facilities.
The company is also focusing on premium, nutrient-dense products. It is working to reduce sugar and sodium while incorporating local ingredients that align with Chinese food preferences.
PepsiCo, Inc. (NASDAQ:PEP) operates as a global food and beverage company. Its business spans segments including PepsiCo Foods North America, PepsiCo Beverages North America, International Beverages Franchise, Europe, Middle East and Africa, Latin America Foods, and Asia Pacific Foods.
While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 15 Dividend Stocks to Buy for Steady Income and 14 Under-the-Radar High Dividend Stocks to Buy Now
Disclosure: None. Follow Insider Monkey on Google News.
