PepsiCo started losing the cola wars when its CEOs lost focus

PepsiCo's cola struggles stem from poor leadership decisions, according to a recent analysis. Steve Reinemund's tenure from 2001 to 2006 saw the company broaden its portfolio through the Quaker Oats merger, which introduced Gatorade. However, Reinemund's changes also brought about a less flexible distribution structure and increased complexity to the business.

Indra Nooyi, his successor, further complicated matters by dividing the company's portfolio into three categories: "Fun for You" (fatty, sugary foods), "Better for You" (lower-calorie or lower-fat versions), and "Good for You" (nutritious foods like oatmeal and hummus). During an era when cities were imposing taxes on sugary drinks, PepsiCo's focus on soda diminished.

Coca-Cola, meanwhile, was shifting its focus towards a "total beverage company" with 32 billion-dollar brands and shedding low-margin bottling plants. Despite having fewer billion-dollar brands, PepsiCo generates more revenue than Coca-Cola and boasts a larger product range. However, the days of the cola wars have seen a decline in focus, which has affected PepsiCo's performance.