PepsiCo, Inc. is a global snack and beverage company. It manufactures, markets and sells a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods.
The Company is organized into four divisions: Frito-Lay North America (FLNA), PepsiCo Beverages North America (PBNA), PepsiCo International (PI) and Quaker Foods North America (QFNA).
PepsiCo is a world leader in convenient foods and beverages, with 2004 revenues of more than $29 billion and 153,000 employees.
1898 - Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist.
1961 - Frito-Lay, Inc. was formed by the merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay
1965- PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
1966 - Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the U.S.
1985 - PepsiCo is now the largest company in the beverage industry. The company has revenues of more than $7.5 billion, more than 137,000 employees.
About PepsiCo PepsiCo is a world leader in convenience foods and beverages. Its world renowned brands are available in nearly 200 countries and territories. PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and beverage companies. PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country in 1989.
The Manufacturing Process Clarifying the water - The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. Filtering, sterilizing and de-chlorinating the water -The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water's taste or color.
Mixing the ingredients The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed.
The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. Carbonating the beverage-Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage. The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases.
Filling and packaging- The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures
SWOT Analysis Of PepsiCo. Strength Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record revenues and increasing market share. Lack of capital constraints (availability of large free cash flow). Great brands, strong distribution, innovative capabilities
Number one maker of snacks, such as corn chips and potato chips PepsiCo sells three products through the same distribution channel. For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.
Weakness- Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bear the company name PepsiCo is far away from leader Coca-cola in the international market demand is highly elastic.
Opportunity- Food division should expand internationally Noncarbonated drinks are the fastest-growing part of the industry. There are increasing trend toward healthy foods Focus on most important customer trend - "Convenience".
Threats F&B industry is mature Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g in India Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors. Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.