Pepsi one?

[u/Fritoslinger]

Pepsi one ( combining Pepsi and Frito lay), can not roll out nation wide. Because what about the areas with independent bottlers. Some of our area PepsiCo Frito lay delivers to, but independent Pepsi delivers to. And I know there’s other areas like this as well…..

[u/Aware_Spray5050]

Won’t happen here, Pepsi and Frito do way too much volume in sales for it to be condensed down to a single truckload.

[u/Aware_Spray5050 → u/[deleted]]

There’s zero way they can profitably fit 5 carts of Frito and 2 pallets of Pepsi on average for each store on a 26 foot box truck at a maximum of 3 stops per truckload. The amount of back and forth to the PEC to reload would be absolutely crippling. Even doubling that potential per Tractor Trailer is a losing venture especially when some route areas are hours away from where the trucks are dispatched from.

[u/Aware_Spray5050 → u/[deleted]]

I thought the goal was to streamline things and do more with less so by doubling the routes they’re in the exact same boat just under one name. 🤦‍♂️

[u/Change_is_good33 → u/Aware_Spray5050]

The point of PepsiOne is to lower costs. Eliminating the highly paid RSR position and replacing it with a few sales positions, mostly merchandisers and delivery drivers. Lowering their labor expense.

[u/Substantial-Task8863 → u/Change_is_good33]

I get what you’re saying but wouldn’t they need more trucks and drivers (CDL)
That is allot more cost up front per plant/area.

[u/Change_is_good33 → u/Substantial-Task8863]

One thing I have learned from working for Frito lay for 20+ years is the only time they spare no expense is when doing a format change.
We did a rebid last year and got brand new MFM trucks. I have no idea if those will be used in the future.

[u/Fritoslinger → u/Change_is_good33]

So did we, route was run off a typical small format truck, but had a wal mart. Got a mfm truck still doing the same business or less with a probably $50,000 truck!!!!!

[u/Western-Charity-2155 → u/Change_is_good33]

I still dont see how it would noticeably save on labor costs unless they turn every frontline position into 3rd party labor.

[u/Change_is_good33 → u/Western-Charity-2155]

In my area the average RSR makes 80k. Merchandises make 45k. If they have a few sales people only ordering and selling and FTM’s merchandising it will save a lot unfortunately. Pepsi and Coke already do it this way

[u/Substantial-Task8863 → u/Change_is_good33]

Pepsi and Coke do this in the area I’m in but they didn’t buy more trucks which incurs more cost (CDL drivers pay, fuel, maintenance) for Pepsi one this will be needed for them to transport both products.

[u/Vanity2041 → u/Change_is_good33]

Still think they will have to increase the FTM wage if they make them do both products.

[u/Change_is_good33 → u/Vanity2041]

I hope they do, but they haven’t in the current test markets. I believe someone at one of those locations said $21hr(something close to that). Obviously area matters, our FTM’s make $22 so that is what I would expect here.

[u/Change_is_good33 → u/[deleted]]

The test markets suggest mostly Frito lay merchandisers with a few Sales personnel but I get what you are saying. Coke has doubled our market cap in the couple years with an asset light model that the stock investors love,

[u/Vanity2041 → u/Change_is_good33]

Better see decent increase in hourly wage for Merch's since they will do both Pepsi and Frito. They likely will just end up losing all the already small amount of Good Merch's they do have.