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Mark the new era of PEPSI – Logo and Investment.
Insight: Pepsi unveils its new look for the first time in 15 years, followed by a global launch next year.
Having recently celebrated its 125th anniversary, Pepsi is now looking forward to its next chapter.
When PepsiCo talks to people about how they perceive its logo, most will put the word “Pepsi” in the circle. However, that is not the actual appearance of the current logo. Pepsi’s lower-case font is located on the outside of the 3 color stripe globe.
That's right! It's time for a change at Pepsi.
“We couldn’t ignore that kind of insight,” said Mauro Porcini, PepsiCo’s Chief Design Officer. “Instead of rejecting it, we decided to embrace it.”
In an announcement released on Tuesday evening, March 28, 2023, PepsiCo announced that its soda brand, Pepsi, would receive its brand new logo for the first time in 15 years. On “electric” blue and black cans, as well as in promotional materials, PepsiCo will begin to use the new logo in its US and Canadian marketing campaigns this fall. Globally, the new look will hit shelves in 2024.
🚨 Welcome to a new era of Pepsi!🚨— Todd Kaplan (@T_Kap) March 28, 2023
Couldn’t be more proud to share our new Pepsi logo and visual identity that we will be rolling out in the US this fall! pic.twitter.com/OC80a6PyDd
What do you think of the new design?
In terms of its look, the new logo appears a lot like the version from the 1990s, which seems to have stayed in people’s minds, but with some new elements to make it more modern, such as a different font and font color and a different border.
Not only are these changes designed to better align with the way people remember Pepsi, but they are also intended to draw attention to Pepsi’s zero sugar line – one of the key elements of the company’s growth strategy.
The New Logo
With its new design, the new logo incorporates the brand’s name once again into the red, white, and blue globe, a look that has been in use since 1987 (and was scrapped several years later in 1997).
The new logo features a punchy, all-caps “PEPSI” inscribed across the white stripe undulating between the waves of red and blue, giving it a more confident look than the previous lower-case “PEPSI.”.
“a bold and confident brand,” — Todd Kaplan, Pepsi’s Chief Marketing Officer.
As a bead inside the sphere, the Pepsi wordmark is more natural and feels more natural than standing beside it.
Mauro Porcini, SVP & Chief Design Officer of PepsiCo, posted on LinkedIn announcing the brand new look. “Modern and original, the fresh look and feel of Pepsi connects the brand’s heritage with our bold vision for what’s to come.”
Enjoy unapologetic enjoyable moments with Pepsi. With a more modern and distinctive design, Pepsi is able to move between physical and digital spaces, from retail shelves to the metaverse, with greater flexibility.
Furthermore, it allows for a seamless and more creative collaboration between partners and retailers too, so that fans can interact with them wherever they shop, dine, work, and play, as well as engage them in the places where they shop, dine, work, and play.
“We couldn’t be more excited to begin a new era for Pepsi, as this exciting new and modern look will drive brand distinction to show up bigger and bolder and help people find new ways to unapologetically enjoy the things they love. This new visual system brings out the best of the Pepsi brand’s rich heritage, while taking a giant leap forward to set it up for success in an increasingly digital world.” – Todd Kaplan, Chief Marketing Officer – Pepsi.
Pepsi Branding and Collaboration
This could be the start of a bigger collaboration between Pepsi and Pop Culture. There is no hiding the fact that Pepsi has partnered with various music projects in the past as they have been involved with campaigns such as 2021 Pepsi X Starship K-Pop Campaign, Pepsi x Blackpink, The Pepsi Super Bowl Halftime Show and many more.
“For over half a century—from iconic creative work with some of the biggest artists in the industry to legendary live performances on a massive scale like the Grammys—music has been the driving force that connects Pepsi and other brands throughout our portfolio to pop culture,” says Adam Harter, SVP of media, sports, and entertainment at PepsiCo.
In addition to music collaborations, Pepsi also collaborated with MTV and TikTok to create a singing competition show titled “Becoming a Popstar” for artists discovered on the social media platform. Additionally, Pepsi creates a music platform called Pepsi Music Lab that aims to break down barriers in the music industry.
“The essence of brand Pepsi has always been for those who are young at heart, and music, at its core, is constantly evolving and being reimagined. Pepsi’s musical collaborations have evolved from generation to generation, but its commitment to unapologetic joy and the power of music remains the same.” – Adam Harter, SVP of media, sports, and entertainment at PepsiCo.
Pepsi is not new to blockchain technology, with their Pepsi Mic Drop Genesis NFT project and Pepsi Live House – a virtual concert in China’s virtual reality (TMELAND). In the concert, Pepsi introduced four virtual idols to form a digital artist group called SHANE FU.
In the NFT space, Pepsi introduced their Pepsi Mic Drop Genesis NFT project which comprises 1,893 unique NFTs. The design is inspired by Pepsi’s delicious, and unique flavors. Among the flavors that fuel the design are classic blue Pepsi, silver Diet Pepsi, Red Pepsi Wild Cherry, Black Pepsi Zero Sugar, and Crystal Pepsi.
PepsiCo generated more than $86.4 B in net revenue in 2022, up 9%. In constant currency terms, organic sales grew 14% and EPS climbed 11%. The growth primarily driven by its complementary beverage and convenience food portfolio, which includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream.
PepsiCo’s products include many iconic brands that each generates estimated annual retail sales of more than $1 billion. Amidst rising inflation and rising interest rates, PepsiCo has become one of the top safe-haven stocks due to its solid growth rates.
Pepsi is gaining market share in certain key consumer staples niches under its umbrella, while paying a growing dividend.
“We are looking to continue to put investments back into the business because we think that is what’s driving the top line and consumers are clearly responding positively to it,” Hugh Johnston, PepsiCO’s Chief Financial Officer told investors as the company reported its full-year results on February 9.
Currently, PepsiCo is trading at $179.43. With a high forecast of $200.00 and a low forecast of $175.00, the average target price remains at $188.20.
Pepsi Max is sold outside of Europe as Pepsi Zero Sugar. In Q4 2022, Pepsi Zero Sugar grew 26%. To take advantage of the no-sugar product, Pepsi Max is reformulated in the US to resemble the recipe in Western Europe. The company also invests in marketing, including the Super Bowl to boost sales.
PepsiCo Company announced a $216M investment in strategic partnership agreements with three well-respected agricultural organizations. ICGA, Practical Farmers of Iowa, and the Soil and Water Outcomes Fund all work together to promote regenerative agriculture. As a result of these three strategic partnerships, more than three million acres of regenerative practices will be implemented on more than three million acres by 2030, reducing and removing approximately three million metric tons of greenhouse gases.
In Other Words
Pepsi’s decision to change its logo is likely to be a profitable move for the company.
A refreshed brand image will increase Pepsi’s branding awareness and allow it to penetrate several new niches. With its iconic globe shape and vibrant colors, the new logo offers greater opportunities for collaboration, marketing, and advertising.
In addition, Pepsi’s new logo differentiates itself from its competition in a stagnant and crowded market. Ultimately, the updated logo represents a strategic investment in the future of the brand and one that has the potential to yield long-term profit.
The key takeaways/market update is a series by AxeHedge, which serves as an initiative to bring compact and informative In/Visible Talks recaps/takeaways on leading brands and investment events happening around the globe.
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