How PepsiCo is keeping its shelves stocked amid coronavirus outbreak
Steven Williams, PepsiCo CEO North American Foods, joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss how PepsiCo is weathering the coronavirus outbreak.
Video Transcript
ALEXIS CHRISTOFOROUS: A number of companies are actually hiring during this pandemic, and also helping employees going through an unprecedented time. And among those is PepsiCo. And I want to welcome Steven Williams now. He is PepsiCo's CEO of North America Foods. And Steven, thanks so much for being with us. I read that PepsiCo is hiring 6,000 people right now. What will those jobs be going towards?
STEVEN WILLIAMS: We are. I want to thank you for having me here today. You know, I'll tell you, the men and women that make, move, and sell our products across the United States are the heartbeat of PepsiCo. We have about 90,000 employees across the US. And these employees we're hiring will really go to take pressure off of the system and help relieve some of the much-needed work that these individuals on the front line of our business are doing.
And in a difficult time, as we've just heard, when many companies are not able to employ, it gives us an outlet also to help those in the communities in need.
ALEXIS CHRISTOFOROUS: We've seen a run on everything from chicken to toilet paper. Do you think that that's founded? Or are American fears about there not being enough product in store shelves a little misguided?
STEVEN WILLIAMS: Yeah. Well, here's what I can tell you. I mean, the US food chain is incredible. And there's no shortage of supply across most food categories. I can tell you our manufacturing sites are running 24/7, speaking for us. And we believe we have the ability to keep up with demand, as do most of the companies.
Movint it around is getting trickier by the day. And making sure we can get products into the stores is job number one, for us and other companies that are in the same situation as we are.
And so yeah. Stocking up-- as long as stores are going to stay open-- and everyone that has talked has said that is a huge priority, whether it's agriculture department, the administration. Food stores will remain to be open. And the food supply is robust and healthy in the United States. And we feel comfortable being able to keep store shelves stocked.
BRIAN SOZZI: Steven, good to talk to you. Brian Sozzi here. What changes to your operations have you had during this outbreak? Have you had to close any facilities? And I know I've covered PepsiCo for some time. You operate under the direct store delivery model, where the employees go into the stores and put the products on the shelves. How have you had to change things up?
STEVEN WILLIAMS: We're just taking an abundance of caution. And so we're making sure that employees that are coming into work are safe. Our number one priority as a business is to keep our people safe, right? Number one. And so making sure that they come into work, they're healthy. And that's one of the reasons we wanted to provide the net that we did. We want to incent healthy people to work, and we want to make sure that people that can't come into work also have a safety net and continue to get paid.
And so we're just taking a bunch of precautions, which includes making sure our people as they come into the DC's and come into the plants, are ready for work, and that they're not putting others in a position where they're not going to be safe.
ALEXIS CHRISTOFOROUS: All right. Steven Williams, PepsiCo CEO, is North American Foods head. Thank you so much for being with us, and thank you for all you're doing to helping keep store shelves stocked because goodness knows, we all need those products. Thank you.
STEVEN WILLIAMS: Thank you.
