Rejection Can’t Stop Merger Buzz Between Nestle and Pepsi

Despite the fact that Nestle is trying to make it clear that a partnership with PepsiCo Inc. is not going to happen, talk of a future agreement continues to circulate. The official concern is that PepsiCo’s reliance on its snacks and sodas may not be reflective of the nutrition conscience image that Nestle is trying to present to its consumers. This deal may appear to be dead and buried, however, a closer look into the common connections between the two companies suggests that a second attempt by Pepsi to join Nestle is not unrealistic.

The IntellectSpace Knowledge Map shown below displays the significant relationships that exist between certain members of Nestle and PepsiCo’s corporate leadership teams. The connections are numerous and the relationships may soon be taken advantage of to change Nestle’s mind. One relationship that may come into play is the relationship shared between Gunter K. Blobel and Arthur C. Martinez, board members of Nestle and PepsiCo, respectively. As seen on the Knowledge Map, both currently sit on the board of International Flavors & Fragrances Inc. This association could potentially lead to the two discussing PepsiCo and Nestle partnership strategies during downtime at the next IFF board meeting.

IntellectSpace’s mapping abilities also allow past relationships to be recognized. Peter Braebeck-Letmathe, Nestle’s Chairman and Chief Executive Officer, presently sits on the board of Credit Suisse and was the company’s Vice-Chairman from 2000 to 2005. When observing the Knowledge Map, we see that Daniel Vasella, who is a director of PepsiCo, was once a director of Credit Suisse. Though Vasella left the Credit Suisse board in 2003, he served at the same time with Braebeck-Letmathe, giving the pair a solid connection. Both individuals are also members of the World Economic Forum, further strengthening this relationship. Between their ties to Credit Suisse and the World Economic Forum, along with the concrete link between Blobel and Martinez, it’s not out of the question that a new agreement between Nestle and PepsiCo is in the works. 

Click here for an interactive version of this IntellectSpace Knowledge Map: 

http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=eb16e1d7-061a-4326-b49f-61ec28004899

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