PepsiCo Inc (PEP, Nasdaq) isn't merely a beverage company - as explained in this strategy document - it is a space company. The Pepsi Universe, with respect to its 8 light year characteristic length, reflects the scale of the total addressable market (TAM) that PepsiCo can expand into.
Noted short-seller and equity valuation skeptic Jim Chanos once described the TAM of space companies as infinite, because space itself is infinite. This pessimistic take anchors our low-end fair value estimate of PEP to $infinity / share. Since PEP currently trades at around $170 / share, we believe there is considerable upside to the long term buy and hold investor.
It looks like lots was going on at the Arnell group at this time. In this article it even quotes Arnell as saying this work for Pepsi in OP as "Bullshit"
Quote from the article about the "Breathtaking Design Strategy" document:
> February 2009: Arnell sold Pepsi a pretentious, mostly made-up brand ideology document linking Pepsi to the Mona Lisa, De[s]cartes and Hinduism, as part of a successful logo redesign. Price: $1 million, reportedly.
Check it out @ 2:11:28 ; the crowd goes wild for Pepsi:
"Out there
It's a Pepsi universe
Thriving since time began
On a steady course
At a steady pace
Bringing pleasure everywhere
All through time and space
And up here
In the Pepsi enterprise
We have one perfect plan:
To bring Pepsi refreshment to all constellations
And if anyone can succeed
We know we can
It's all there on history's pages
One refreshment through the ages
[Spoken] Pepsi is the universal refreshment, but has it always been that way, Professor?
[Spoken] As far as I can remember.
We're proud that the Pepsi enterprise
Never, ever stands still
'Cause the company's working
Side by side with our bottlers
And if anyone can succeed
We know we WILL!
"
Remember that John Sculley has been the only one who could. Kinda. Sculley invented the Pepsi Challenge, (and infamously failed it on camera) signed Michael Jackson to promote and went off to Cupertino and did some interesting things there too. But Coca-Cola Company had Michael Bay and still does. If you're dealing in visual impact imagination Michael Bay's a trump card.
Noted short-seller and equity valuation skeptic Jim Chanos once described the TAM of space companies as infinite, because space itself is infinite. This pessimistic take anchors our low-end fair value estimate of PEP to $infinity / share. Since PEP currently trades at around $170 / share, we believe there is considerable upside to the long term buy and hold investor.