PepsiCo Beverages North America (PBNA) has officially opened a new warehouse and distribution center in Smyrna, Tennessee. This state-of-the-art facility is now the company's second-largest distribution site in the United States and the largest in the Southeast region. The investment will enable PepsiCo to enhance its operational efficiency and meet customer demands more effectively.
The newly inaugurated Smyrna distribution center spans approximately 400,000 square feet, featuring both office spaces and a climate-controlled warehouse. The facility, which has achieved LEED Silver certification, incorporates sustainability enhancements like all-electric warehousing equipment. This is part of PepsiCo's pep+ ambition to drive positive action for people and the planet.
Heather Hoytink, President of PBNA South Division, expressed enthusiasm about the expansion: “We are thrilled to expand into Smyrna as our business continues to grow in the Greater Nashville region. With our rich history in the state of Tennessee, we're so proud to invest in this growing community and support its world-class hospitality scene, vibrant culture, and strong business footprint.”
The Smyrna facility is strategically positioned to serve 14 counties within the Nashville metropolitan area. It has the capacity to distribute 20 million cases of PepsiCo beverages annually, including popular brands such as Pepsi, Mountain Dew, bubly, Gatorade, and Rockstar.
A PepsiCo spokesperson highlighted the significance of the expansion, stating, “The expansion in Smyrna enables PBNA to meet customer demands more efficiently, positioning the company for continued success in the growing Greater Nashville area – including Rutherford County, the fastest-growing county in Tennessee for the last eight years.”
This development comes at a time when PepsiCo is navigating changing consumer behaviors. Last month, CEO Ramon Laguarta noted that US consumers are becoming “much more price conscious,” impacting demand for the company’s products following several years of price increases. Despite these challenges, PepsiCo's North America division reported a 3% year-on-year volume decline in the second quarter due to weakening demand.
However, PepsiCo remains optimistic about its growth prospects. In the second quarter, the company achieved organic revenue growth of 1.9%, reaching USD 22.5 billion. Operating profit also saw an increase from USD 3.66 billion to $4.05 billion year-on-year, and net income rose from USD 2.75 billion in the second quarter of 2023 to USD 3.08 billion this year.
As PepsiCo continues to invest in expanding its distribution network, the new Smyrna center is poised to play a crucial role in supporting the company's long-term growth strategy and meeting the needs of its customers in the Nashville metropolitan area
