Summary
Pepsi's offer will help it have more control over what ultimately will end up on shelf. Pepsi will have consistency of product variety more closely lined to trends. Pepsi will be able to leverage advertising spend across U.S
Analysis
If Pepsi is able to execute their strategy of buying the remaining shares of their 2 main bottlers, they will gain a synergistic strategic advantage against their main competitor Coke. With recent acquisitions that have allowed Pepsi to follow and take advantage of trendier non carbonated beverages, they have not been able to gain speed to market as the bottlers decide what it is they are going to produce.
By gaining control of the bottlers they will be able to dictate what will be made in these bottlers and hence work to gain shelf space for all strategically and get speed to shelf on a National basis.
This speed will allow Pepsi to get more out of these strategic acquisitions they have made in "New Age drinks", Teas, Gatorade, Tropicana as well as Naked. This will allow advertising to be a much more efficient and effective spend.
I believe this also falls in line with the new CEO's Global strategy of aligning purpose across the entire company. How can all in the company share the same purpose if your bottlers get to still decide to bottle what they want?
Quality of product will also be in the hands of Pepsi.
In summary Pepsi is taking a brilliant first step in a longer term strategy of a consistent purpose driven organization to gain control of their entire organization and get everyone including Frito on the same page.
