PEPSICO COMPANY PRESENTATIONPEPSICO is a multinational manufacturer of beverage&corn chips, potato chips and other snack foods.``
CONTENTSHistoryMission and VisionValues and PhilosophyOriginsAcquisitions and divestmentsRestructuringCompetitionProducts and brandsAreas of business
PEPSICO HISTORYPepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, UnitedStates, with interests in the manufacturing, marketing and distribution of grain-based snackfoods, beverages, and other products. PepsiCo, Inc. is founded by Donald M. Kendall, President andChief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer ofFrito-Lay, through the merger of the two companies. PepsiCo was formed in 1965 with the merger ofthe Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake productPepsi to a broader range of food and beverage brands, the largest of which include an acquisition ofTropicana in 1998 and a merger with Quaker Oats in 2001 – which added the Gatorade brand to itsportfolio as well.As of 2009, 19 of PepsiCos product lines generated retail sales of more than $1 billion each, and thecompany’s products were distributed across more than 200 countries, resulting in annual netrevenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beveragebusiness in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest foodand beverage business.Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the companyemployed approximately 285,000 people worldwide as of 2010. The company’s beverage distributionand bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC2080 (beverage) company.
PEPSICO MISSION AND VISIONOur MissionOur mission is to be the worlds premier consumer products company focused on convenientfoods and beverages. We seek to produce financial rewards to investors as we provideopportunities for growth and enrichment to our employees, our business partners and thecommunities in which we operate. And in everything we do, we strive for honesty, fairnessand integrity.Our Vision"PepsiCos responsibility is to continually improve all aspects of the world in which weoperate - environment, social, economic - creating a better tomorrow than today."Our vision is put into action through programs and a focus on environmentalstewardship, activities to benefit society, and a commitment to build shareholder value bymaking PepsiCo a truly sustainable company.
PEPSICO VALUES & PHILOSOPHY`` Our Values & Philosophy are a reflection of the socially and environmentallyresponsible company we aspire to be. They are the foundation for every business decisionwe make.``
ORIGINSThe recipe for Pepsi, the soft drink, was first developed in the 1890s by a New Bern, North Carolina pharmacist andindustrialist, Caleb Bradham, who named it "Pepsi-Cola" in 1898. As the cola developed in popularity, he created thePepsi-Cola Company in 1902 and registered a patent for his recipe in 1903. The Pepsi-Cola Company was firstincorporated in the state of Delaware in 1919. The company went bankrupt in 1931 and on June 8 of that year thetrademark and syrup recipe was bought by Charles Guth who owned a syrup manufacturing business inBaltimore, Maryland. Guth was also the president of Loft, Incorporated, a leading candy manufacturer and used thecompanys labs and chemists to reformulate the syrup. He further contracted to stock the soda in Lofts large chain ofcandy shops and restaurants, which were known for their soda fountains, used Loft resources to promote Pepsi, andmoved the soda company to a location close by Lofts own facilities in New York City. In 1935 the shareholders of Loftsued Guth for his 91% stake of PepsiCo in the landmark Guth v. Loft Inc.. Loft won the suit and on May 29, 1941formally absorbed Pepsi into Loft, which was then rebranded as Pepsi Cola Company that same year. (Loft restaurantsand candy stores were spun off at this time.) In the early 1960s the company product line expanded with the creationof Diet Pepsi and purchase of Mountain Dew.Separately, the Frito Company and H.W. Lay & Company – two American potato and corn chip snack manufacturers –began working together in 1945 with a licensing agreement allowing H.W. Lay to distribute Fritos in the SoutheasternUnited States. The companies merged to become Frito-Lay, Inc. in 1961.In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the company it is known as atpresent. At the time of its foundation, PepsiCo was incorporated in the state of Delaware and headquartered inManhattan, New York. The companys headquarters were relocated to its still-current location of Purchase, New Yorkin 1970, and in 1986 PepsiCo was reincorporated in the state of North Carolina.PepsiCo was the first company to stamp expiration dates, starting in March 1994.
ACQUISITIONS AND DIVESTMENTSBetween the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses outside of its corefocus of packaged food and beverage brands; however it exited these non-core business lines largely in1997, selling some, and spinning off others into a new company named Tricon Global Restaurants, which laterbecame known as Yum! Brands, Inc.. PepsiCo also previously owned several other brands that it later sold, inorder to allow it to return focus to its primary snack food and beverage lines, according to investment analystsreporting on the divestments in 1997. Brands formerly owned by PepsiCo include: Pizza Hut, Taco Bell,KFC, Hot n Now, East Side Marios, DAngelo Sandwich Shops, Chevys Fresh Mex, California PizzaKitchen, Stolichnaya (via licensed agreement), Wilson Sporting Goods and North American Van Lines.The divestments concluding in 2007 were followed by multiple large-scale acquisitions, as PepsiCo began to extendits operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo purchased theorange juice company Tropicana Products in 1998, and merged with Quaker Oats Company in 2001, addingwith it the Gatorade sports drink line and other Quaker Oats brands such as Chewy Granola Bars and AuntJemima, among others.In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its products in North America:Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition was completed, resulting in the formation of anew wholly owned subsidiary of PepsiCo, Pepsi Beverages Company. In February 2011, the company made itslargest international acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann Foods, a Russianfood company which produces milk, yogurt, fruit juices and dairy products. When it acquired the remaining 23%stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food and beverage company inRussia.
RESTRUCTURINGIn February 2012 ahead, CEO of PepsiCo Inc. plans to cut 8,700 jobs or about 3percent of the PepsiCos global workforce and boost marketing spending for itsbrand by as much as $600 million. It may save about $1.5 billion by 2014.
COMPETITIONThe Coca-Cola Company has historically been considered PepsiCo’s primary competitor in the beverage market, andin December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years sinceboth companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated softdrink sales within the U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment beveragemarket, however, reflecting the differences in product lines between the two companies. As a result ofmergers, acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to includea broader product base, including foods, snacks and beverages. The majority of PepsiCos revenues no longer comefrom the production and sale of carbonated soft drinks. Beverages accounted for less than 50 percent of its totalrevenue in 2009. In the same year, slightly more than 60 percent of PepsiCos beverage sales came from its primarynon-carbonated brands, namely Gatorade and Tropicana.PepsiCos Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market, accounting forapproximately 39 percent of U.S. snack food sales in 2009. One of PepsiCos primary competitors in the snack foodmarket overall is Kraft Foods, which in the same year held 11 percent of the U.S. snack market share.
PRODUCTS AND BRANDS PEPSI-COLA BRANDS FRITO-LAY-NORTH FRITO-LAY- NORTH AMERICA BRANDS Pepsi AMERICA BRANDS Cheetos cheese flavored snacks Sierra Mist Lays potato chips Rold Gold pretzels Slice Lays Kettle Cooked potato Funyuns onion flavored rings Sunchips Tropicana chips multigrain snacks Ocean Spray (License) Wavy Lays potato chips Sabritones puffed wheat snacks More Baked Lays potato crisps Cracker Jack candy coated popcorn Mountain Dew Maui Style potato chips Chesters popcorn Grandmas cookies AMP Energy Ruffles potato chips Gamesa cookies and wafers Mug Root Beer Baked Ruffles potato Munchos potato crisps Smartfood popcorn No Fear crisps Baken-ets fried pork skins Seattles Best Coffee Doritos tortilla chips Matador meat snacks Tazo Baked Doritos tortilla Frito-Lay nuts Frito-Lay, SoBe chips Fritos and Tostitos dips & salsas Frito- Aquafina Tostitos tortilla chips Lay, Doritos and Cheetos snack crackersStarbucks (Partnership) Baked Tostitos tortilla Hickory Sticks Lipton (Partnership) chipsOutside North America Santitas tortilla chips Stacys pita chips Fritos corn chips
PRODUCTS AND BRANDSFRITO-LAY OUTSIDE NORD FRITO-LAY OUTSIDE NORD AMERICA BRANDS AMERICA BRANDS Walkers Monster Munch corn snacks, Gamesa cookies Doritos DippasBocabits wheat snacks Sonrics sweet snacks, Wotsits corn snacks, Walkers SensationsCrujitos corn snacks Doritos, A La Turca Lays Mediteranneas, Red Rock Deli Kurkure SmithsFandangos corn snacks Sensations Lays Artesanas PC Cheetos Shots Quavers SnacksHamkas snacksNiknaks cheese snacksQuavers potato snacksSabritas potato chips GATORADE BRANDS QUAKER BRANDSSmiths potato chipsWalkers potato crispsWalkers Square potatosnacksWalkers French Fries TROPICANA BRANDSpotato sticks
AREAS OF BUSINESSThe structure of PepsiCos global operations has shifted multiple times in its history as a result of international expansion, and as of 2010it is separated into four main divisions: PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia,Middle East and Africa. As of 2009, 71 percent of the company’s net revenues came from North and South America, 16 percent fromEurope and 13 percent from Asia, the Middle East and Africa.  Approximately 285,000 people are employed by PepsiCo worldwide as of2010.