Why food companies own smaller brands

Question

Was drinking Pure Leaf tea and saw that it was owned by Pepsi. Why don’t they call it Pepsi tea?

In: Economics

Answer 1

1. Go to Pepsi’s site.
2. Go to Pure Leaf’s site.
3. Compare their marketing

PepsiCo wants to sell products. Since marketing tea is quite different from marketing softdrinks they created* two different brands for two different groups of products.

This is normal when a company tries to sell different products or different product tiers (google for example which different car brands are owned by the Volkswagen group).

*Or bought up.