PepsiCo (PEP) - Get PepsiCo, Inc. Report shares rose after the food-and-beverage giant said it launched two websites it hopes consumers will use to buy its products during the coronavirus pandemic and beyond.
“As consumers increasingly turn online for their food and beverage needs during the covid-19 pandemic,” the company said in a statement, it’s starting up PantryShop.com and Snacks.com.
PantryShop.com will offer brands including Quaker, Gatorade, SunChips and Tropicana. Snacks.com will offer Frito-Lay products, including Lay's, Tostitos, Cheetos and Ruffles.
"Investing in e-commerce and digital capabilities and talent has been – and will continue to be – a big part of” Pepsi’s strategy, the Purchase, N.Y., company's e-commerce chief, Gibu Thomas, said in the company’s statement.
"In these uncertain times, as more and more consumers are using e-commerce channels to purchase food and beverage products, PantryShop.com and Snacks.com offer shoppers another alternative for easy and fast access to products they love."
In the first quarter, operating profit rose 4% from a year earlier for Frito-Lay North America, rose 8% for Quaker Foods North America and fell 24% for PepsiCo Beverages North America.
Morningstar analyst Nicholas Johnson sees Pepsi shares as fairly valued.
“Different production processes and business models make snacks more profitable for Pepsi, which should bode well for margins in the current environment,” he wrote in a report last week.
“However, any margin uplift should be offset by heightened costs for labor and logistics across the supply chain.”
Pepsi stock ticked up 0.1% to close at $134.38. It has slid 7% over the past three months, compared with a 12% drop for the S&P 500.