Letter To Shareholders - PepsiCo Annual Report 2009

indra k. nooyi, Chairman and Chief Executive Officer Dear Fellow Shareholders, A Roman author said more than two millennia ago that anyone can steer the ship when the sea is calm. The true test of endurance and stamina, he went on, is to navigate through rough waters. Well, this year has seen some of the roughest possible waters. The economic tempest of 2008 turned into the perfect storm of 2009. Business was battered by volatile commodity costs, frozen credit markets, fluctuating currencies and negative GDP rates. At PepsiCo, it seemed as if each day brought a new challenge. Every one of them tested the strength and capabilities of our organization. And I can declare with great pride that we passed the test of endurance and stamina wonderfully well. We are a company with great resilience. The ability of our associates to pull together has left me excited about our momentum from 2009 into 2010 and beyond. I don’t think this is due just to the ability of all the great people we have. I think our company is more than the sum of This acknowledges that businesses have a responsibility to the those considerable parts; we draw extra strength from the solid communities in which they operate, to the consumers they foundation of values and principles upon which PepsiCo is built. serve and to the environment whose resources they use. The business community and government did a great deal of We provide great-tasting products, outstanding quality and soul-searching in the midst of the challenging global economy, supreme value to consumers worldwide, while maintaining an seeking to uncover the source of our world’s ﬁnancial problems underpinning of integrity and responsibility. We have instilled this and how best to share responsibility to address the situation. As fundamental belief into all of our brands—Quaker Oats, Tropicana, debates raged on issues that are core to a vibrant, functioning Sabritas, Walkers, Lay’s, Gatorade and Pepsi-Cola, to name a few— marketplace, it became increasingly clear as the year went on to ensure we offer consumers a diverse portfolio of enjoyable and that corporate ethics are inexorably linked to a healthy economy. wholesome nutritious foods and beverages. We take seriously A former American president, Dwight Eisenhower, once our responsibility to ﬁnd innovative ways to use less energy, said, “A people that values its privileges above its principles water and packaging, our responsibility to hire local people in soon loses both.” The same is true of a company, and the past the communities where we operate, create products designed 18 months have proved the wisdom of the remark. for local tastes, and partner with local producers and suppliers. Here at PepsiCo, we are fortunate to have embedded And, we have expanded our responsibility to partner with local Performance with Purpose into our culture and fabric long governments and NGOs to address the growing twin problems before this current downturn. It is one of the fundamental of malnutrition and obesity acute to different parts of the world. factors that kept PepsiCo on the leading edge in 2009. Performance with Purpose means that we will continue to Our basic belief—that companies today must marry bring together what is good for society and what is good for performance with ethical concerns—is resonating more than business. It encourages us to think globally while acting locally. It ever before. For consumers, this translates into receiving value, has helped us break into new regions and harness local products both economic and social, from trusted brands. For govern- and talent to drive our growth. It drives our commitment to ments and the wider public, it translates into responsibility. increase diversity in the workforce, enhancing our ability to 2 Pepsico, inc. 2009 annual report

Letter To Shareholders - PepsiCo Annual Report 2009

by PepsiCo on Mar 22, 2010

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Letter To Shareholders - PepsiCo Annual Report 2009 — Document Transcript