Coca-Cola and PepsiCo have been battling for decades, but when it comes to key supply chain and financial metrics, the differences are striking. For food and beverage brands looking to optimize their own operations, there’s a lot to learn from these giants. Let’s break it down:

Inventory Turnover

How quickly inventory is sold and replaced.

• Coca-Cola: 4.19

• PepsiCo: 7.85

PepsiCo moves inventory faster, thanks to its diversified portfolio that spans snacks and beverages. Coca-Cola, focused on drinks, might be slower, but it also reflects high-value products that stay on shelves longer.

Cash Conversion Cycle (CCC)

How fast a company turns inventory investments into cash.

• Coca-Cola: 16 days

• PepsiCo: Negative 12 days

PepsiCo is the clear leader here. A negative CCC means PepsiCo gets paid by customers before they pay their suppliers—a masterclass in working capital efficiency. Coca-Cola’s 16 days is respectable, but PepsiCo’s strategy minimizes cash flow risks.

Revenue Growth (YoY)

Year-over-year percentage increase in revenue.

• Coca-Cola: 11.6%

• PepsiCo: 9.2%

Coca-Cola’s laser focus on beverages seems to have paid off in revenue growth, outpacing PepsiCo. Seasonal demand and premiumization strategies (think Coke Zero and specialty drinks) give it an edge.

Gross Margin

Percentage of revenue left after deducting cost of goods sold.

• Coca-Cola: 59.52%

• PepsiCo: 54.21%

Coca-Cola’s beverage focus gives it higher gross margins compared to PepsiCo, which deals with the more cost-intensive snack segment. This metric highlights Coca-Cola’s ability to maintain profitability per unit.

Operating Margin

Profit earned from core operations after deducting operating expenses.

• Coca-Cola: 24.72%

• PepsiCo: 13.10%

Coca-Cola’s operating margin dominance reflects a leaner operation and higher-margin products. PepsiCo’s snack-heavy portfolio, while profitable, comes with higher operating costs.

Key Takeaways for Food & Beverage Brands

1. Diversification vs. Specialization: PepsiCo’s diversified portfolio boosts inventory turnover but increases operating costs. Coca-Cola’s singular focus drives higher margins. What’s your brand’s strategy?

2. Cash Flow Mastery: PepsiCo’s negative CCC is a reminder to optimize payment terms with both suppliers and customers. Cash flow efficiency matters.

3. Revenue Drivers: Coca-Cola’s growth highlights the importance of premiumization. Whether it’s artisanal drinks or specialty snacks, premium products drive value.

Who’s winning? It depends on the metric. Coca-Cola leads in margins and revenue growth, while PepsiCo dominates in inventory efficiency and cash flow. For brands, the lesson is clear: know your strengths, leverage them, and fine-tune your supply chain for profitability.

Which of these metrics does your business need to work on? Let’s talk in the comments.

I am an Ad-Age, Emmy, Shorty, Telly, and Webby Award-Winning Social Media Strategist and Content Creator for outdoor lifestyle, adventure, travel, and recreation brands. With over two decades of experience, I specialize in crafting inspiring and engaging narratives that elevate the outdoor lifestyle sector. My work focuses on creating impactful social media strategies that captivate audiences and foster strong, loyal communities.