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Fallout from Republican Tax Plan?

Yesterday, PepsiCo announced that it would be giving certain employees a rather large bonus of an additional 1,000 dollars, PepsiCo cited the Republican tax plan as the reason they were able to provide these bonuses to it’s employees. The same day PepsiCo also announced a small amount of its workers would be layed off, reports are not providing a reason for the lay-offs.

PepsiCo said that the bonuses would be going primarily to those who deliver the goods to the individual locations: truck drivers. Factory workers who actually produce the products that PepsiCo is famous for will also be receiving bonuses.

This is the very same move that Wal-Mart made last month when they announced they were raising company wide minimum wage and the very next day they announced 3,500 co-managers were going to be laid off.

The company also posted its sales and earnings yesterday. The report blew professional analysts’ estimates out of the water. Daughter company of PepsiCo, Frito Lay, will have to pick up the slack where certain brands of soda have lost popularity.

Certain people in the industry are pointing the finger at PepsiCo’s overly enthusiastic approach to newer soft drinks, they are taking their eye of the ball so to say. When they neglect advertising their core product in favor of trying to get people to try their newest goods, it creates uncertainty among the consumers.

Despite these beliefs, PepsiCo and rival company Coca-Cola Co. both have said they intend to move forward with creating and promoting their newer products, including soft drinks and snacks. While the future of the soft drink industry remains in doubt, neither company is really in any danger of losing out too badly. Both PepsiCo and Coca-Cola Co. are juggernauts of the industry and even if people are drinking less and less soft drinks, it appears that they aren’t slowing down on their snack-food consumption.

As for the tax cuts, PepsiCo credits them as the reason further innovations will be made in the industry, but truthfully only time will tell in regards to what is in store next.

1 Comment

  1. I really think that they should consider making other plans as it relates to the tax package proposed by the law makers as it doesn’t go well with the masses. Though rush paper has been able to air out the opinions of most people as it relates to the tax issues I want to believe that they are strongly considering making better tax policies that the people would see fair.

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