PepsiCo is moving past pure in-house or full outsourcing. As reported by Marketing Dive, it’s now embracing a hybrid “co-sourcing” model with long-time partner VaynerMedia.
What Co-Sourcing Means in Practice
Under co-sourcing, PepsiCo and VaynerMedia share responsibilities more fluidly. Processes like brief creation, creative ideation, and execution are more integrated and less siloed. The two firms align around shared KPIs instead of rigid agency handoffs.
The goal: speed, cultural relevance, and scale. PepsiCo’s beverages division, led by CMO Mark Kirkham, says the co-sourced model has tripled content output and boosted engagement significantly.
Origins of the Shift
This isn’t a sudden pivot. The partnership builds on over a decade of collaboration. In June, PepsiCo expanded VaynerMedia’s role to help its brands react faster to social trends and pop culture.
Kirkham himself acknowledged that for large legacy brands, staying nimble on social channels is challenging. He noted that traditional approval cycles couldn’t keep pace with trending platforms.
Early Wins and Results
Since adopting co-sourcing, PepsiCo has accelerated turnaround times. What used to take weeks can now take days. Some brands within its portfolio have seen engagement lifts of 50 to 70 percent, per executives.
One of the most visible success stories is Mug Root Beer. Its social campaigns lean into Meme culture, with VaynerMedia employees wearing the brand’s bulldog costume in posts. That kind of playfulness, testing Pepsico says, drives brand heat and sales.
Risks, Culture, and What to Watch
Not every brand will succeed with co-sourcing. Cultural alignment matters deeply. VaynerMedia being indie gives it flexibility. A firm bound by quarterly expectations might struggle to adapt.
PepsiCo says it’s smooth so far. Kirkham jokes that in meetings, you can’t tell who is PepsiCo and who is VaynerMedia; he sees that as proof of integration.
Watch metrics like content ROI, speed of creative to market, and whether co-sourced work holds up on brand consistency. Also monitor how other CPG brands respond; this could become a new agency model benchmark.
