Indra Nooyi

But the pricing doesn't reflect the changes.

You know, why is that?

And why do I need four different packs?

Why don't I just have two?

And I'm going, I don't have the reason.

But, you know, he's thinking about how can I get the maximum price

inventory on these shelves that makes sense for the consumer, but have price transparency so the consumer is served well.

And basically what he was pointing out to me is my pricing architecture was messed up.

And even if the consumer didn't express their confusion, they were probably confused because we were confused at that time looking at the four packages.

But he would look at it at that granular level.

And, you know, you learn so much and say, guys, hang on.

When you go back and you look at pricing architecture, you ask people these questions.

How many SKUs did you put on of Quaker Oats?

Why do we need 10 SKUs?

Why not four?

It'll simplify the manufacturing operations.

Because the velocity is so high and it's all, you know, air in the bags, right?

So if you put it through the warehouse, it'll take up too much space in the warehouse.

So we bring it in through our trucks and our salesmen know how to put the right skews in the right place on the shelf.

If Frito-Lay products and beverage products came through the warehouse, they would have to build separate buildings just to house those products.