Strategic Lens: Inside PepsiCo M&A with Daniel Grubbs

Jul. 3, 2019 at 12:00 AM


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Daniel Grubbs, managing director of PepsiCo Ventures Group, brought attendees behind the scenes of the soda and snack giant’s M&A strategy. The Venture Group’s purpose, Grubbs said, is to invest in and support early stage businesses, especially as PepsiCo looks to deepen its presence in better-for-you snacks. PepsiCo’s Hive gives brands the opportunity to take the next step forward, while its Nutrition Greenhouse is an accelerator helping brands in their earlier stages.

While Grubb said there’s no “typical deal” that PepsiCo strikes with emerging brands, the company often becomes involved with companies at an early stage as a minority investor. They also look to identify a brand’s core mission early on and analyze how they deliver on this by relating to the consumer. He said PepsiCo looks for brands that own their space, even if it’s niche, and which have the ability to live on and be fresh and innovative going forward.

Grubb said brands that receive minority investment from PepsiCo could possibly be on the path towards full acquisition. He said the company “wants to make sure they don’t just ride a wave and crash,” as they could own that brand in a later stage.

Learn more about NOSH Live, a two-day conference for the natural food industry, at noshlive.com

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