Title: PepsiCo. Authors: Purdy, Elizabeth Rholetter, PhD Source: Salem Press Encyclopedia, January, 2017. 2p.  Document Type: Article Subject Terms: PEPSICO Inc. BEVERAGE industry FOOD industry http://eds.b.ebscohost.com.ezproxy.umuc.edu/eds/detail/detail?sid=51898610-0e91-46c9-afc2-1253f950f72d%40sessionmgr102&vid=1&hid=127&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=ers&AN=87996580 Abstract: PepsiCo is known throughout the world for soft drinks such as Pepsi and Mountain Dew and for salty snacks such as Fritos, Lay’s potato chips, and Doritos. PepsiCo also produces Quaker Oats products, Tropicana juices, Gatorade, and Aquafina bottled water. In 2013, despite weather-related setbacks and an increase in payroll taxes, PepsiCo reported revenues of $66.42 billion. At that time, the company had become the second largest transnational company in the world, and one half of its revenues were earned outside the United States. PepsiCo boasts twenty-two one-billion dollar brands. Over one billion PepsiCo products are consumed around the world on any given day. Even though it is constantly being challenged by rival Coca-Cola, PepsiCo prides itself on being the largest food and beverage company in the United States, Russia, India, and the Middle East. Globally, PepsiCo has 274,000 employees, with the early years of the twenty-first century characterized by massive global growth and the development of a social consciousness under the leadership of CEO Indra Nooyi, who is consistently ranked as one of the most powerful businesswomen in the world. Full Text Word Count: 1404 Accession Number: 87996580 Persistent link to this record (Permalink):  http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com/login.aspx ?direct=true&db=ers&AN=87996580&site=eds-live&scope=site Cut and Paste: <a href="http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com/logi n.aspx?direct=true&db=ers&AN=87996580&site=eds-live&scope=site">PepsiCo. </a> _____  Last reviewed: January 2017 PepsiCo is known throughout the world for soft drinks such as Pepsi and Mountain Dew and for salty snacks such as Fritos, Lay’s potato chips, and Doritos. PepsiCo also produces Quaker Oats products, Tropicana juices, Gatorade, and Aquafina bottled water. In 2013, despite weather-related setbacks and an increase in payroll taxes, PepsiCo reported revenues of $66.42 billion. At that time, the company had become the second largest transnational company in the world, and one half of its revenues were earned outside the United States. PepsiCo boasts twenty-two one-billion dollar brands. Over one billion PepsiCo products are consumed around the world on any given day. Even though it is constantly being challenged by rival Coca-Cola, PepsiCo prides itself on being the largest food and beverage company in the United States, Russia, India, and the Middle East. Globally, PepsiCo has 274,000 employees, with the early years of the twenty-first century characterized by massive ...

1. Title: PepsiCo.
Authors: Purdy, Elizabeth Rholetter, PhD
Source: Salem Press Encyclopedia, January, 2017. 2p.
Document Type: Article
Subject Terms: PEPSICO Inc.
BEVERAGE industry
FOOD industry
http://eds.b.ebscohost.com.ezproxy.umuc.edu/eds/detail/detail?s
id=51898610-0e91-46c9-afc2-
1253f950f72d%40sessionmgr102&vid=1&hid=127&bdata=JnNp
dGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=ers&A
N=87996580
Abstract: PepsiCo is known throughout the world for soft drinks
such as Pepsi and Mountain Dew and for salty snacks such as
Fritos,
Lay’s potato chips, and Doritos. PepsiCo also produces Quaker
Oats
products, Tropicana juices, Gatorade, and Aquafina bottled
water. In
2013, despite weather-related setbacks and an increase in
payroll taxes,
PepsiCo reported revenues of $66.42 billion. At that time, the
company
had become the second largest transnational company in the
world, and
one half of its revenues were earned outside the United States.
PepsiCo
boasts twenty-two one-billion dollar brands. Over one billion
PepsiCo

2. products are consumed around the world on any given day. Even
though it
is constantly being challenged by rival Coca-Cola, PepsiCo
prides itself
on being the largest food and beverage company in the United
States,
Russia, India, and the Middle East. Globally, PepsiCo has
274,000
employees, with the early years of the twenty-first century
characterized by massive global growth and the development of
a social
consciousness under the leadership of CEO Indra Nooyi, who is
consistently ranked as one of the most powerful businesswomen
in the
world.
Full Text Word Count: 1404
Accession Number: 87996580
Persistent link to this record (Permalink):
http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com/
login.aspx
?direct=true&db=ers&AN=87996580&site=eds-live&scope=site
Cut and Paste: <a
href="http://ezproxy.umuc.edu/login?url=http://search.ebscohos
t.com/logi
n.aspx?direct=true&db=ers&AN=87996580&site=eds-
live&scope=site">PepsiCo.
</a>
_____
Last reviewed: January 2017
PepsiCo is known throughout the world for soft drinks such as

3. Pepsi and
Mountain Dew and for salty snacks such as Fritos, Lay’s potato
chips,
and Doritos. PepsiCo also produces Quaker Oats products,
Tropicana
juices, Gatorade, and Aquafina bottled water. In 2013, despite
weather-related setbacks and an increase in payroll taxes,
PepsiCo
reported revenues of $66.42 billion. At that time, the company
had
become the second largest transnational company in the world,
and one
half of its revenues were earned outside the United States.
PepsiCo
boasts twenty-two one-billion dollar brands. Over one billion
PepsiCo
products are consumed around the world on any given day. Even
though it
is constantly being challenged by rival Coca-Cola, PepsiCo
prides itself
on being the largest food and beverage company in the United
States,
Russia, India, and the Middle East. Globally, PepsiCo has
274,000
employees, with the early years of the twenty-first century
characterized by massive global growth and the development of
a social
consciousness under the leadership of CEO Indra Nooyi, who is
consistently ranked as one of the most powerful businesswomen
in the
world.
87996580-92943.jpg<http://largecontent.ebsco-
content.com/embimages/1271d
abae0168dbd2dfc09d1e0888713/58f945e8/ers/sp/embedded/879

4. 96580-92943.jpg>
PepsiCo Inc. is an American multinational food and beverage
corporation
headquartered in Purchase, New York, United States, with
interests in
the manufacturing, marketing and distribution of grain-based
snack
foods, beverages, and other products. By EEIM (Own work)
[CC-BY-SA-3.0
(http://creativecommons.org/licenses/by-sa/3.0) or Public
domain], via
Wikimedia Commons
87996580-92944.jpg<http://largecontent.ebsco-
content.com/embimages/71e6c
4b0b732b69ba93c1f467d9d2fb9/58f945e8/ers/sp/embedded/879
96580-92944.jpg>
PepsiCo world headquarters By Peter Bond from Philadelphia,
USA
(IMG_3987) [CC-BY-SA-2.0
(http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia
Commons
Brief History
In 1902, Caleb Davis Bradham, a pharmacist living in New
Bern, North
Carolina, established the Pepsi-Cola Company after selling his
pepsin
and cola concoction as a fountain drink at his drug store for
several
years. In 1932, Charles Elmer Doolin founded the Frito
Company, and H.
W. Lay established the H.W. Lay Company. The two snack
companies merged
into Frito-Lay in 1961. Four years later, the Pepsi-Cola
Company merged

5. with Frito-Lay to form PepsiCo. Donald M. Kendall, then-head
of
Pepsi-Cola, became president and chief executive officer, and
Herman
Lay, then-head of Frito-Lay, became chairman of PepsiCo’s
board of
directors. At the time, PepsiCo employed nineteen thousand
people and
had reported annual revenues of $510 million.
Until the mid-twentieth century, Pepsi-Cola was the chief
product of the
Pepsi-Cola Company. In 1948, Mountain Dew was introduced,
and Diet Pepsi
followed in 1964. Frito-Lay went from producing only Fritos
corn chips
and Lay’s potato chips to adding Cheetos cheese puff snacks in
1948,
Ruffles potato chips in 1958, Red Gold pretzels in 1961, and
Doritos
tortilla chips in 1966. In the mid-sixties, new facilities were
opened
in Europe and Japan, and by 1970, Pepsi became the first
American
consumer product offered for sale in the Soviet Union. That
same year,
PepsiCo’s headquarters were relocated from New York City to
Purchase,
New York, where the 144-acre PepsiCo campus remains.
In the late 1970s, PepsiCo expanded its scope and acquired
national
fast-food restaurant chains Pizza Hut (1977) and Taco Bell
(1978).
Kentucky Fried Chicken (KFC) became part of PepsiCo in 1986.
By 1995,

6. PepsiCo’s food franchise accounted for 37 percent of the
company’s
overall revenues.
By the mid-1980s, PepsiCo had expanded to 150 countries and
territories.
At the end of the decade, PepsiCo acquired British-based
Walker’s Crisps
and Smith, and expansions continued into the following decade
with
PepsiCo forming partnerships with Dutch company Unilever to
sell
tea-based drinks and Seattle, Washington, based Starbucks to
sell coffee
products. Cracker Jack snack was acquired in 1997 and
Tropicana drink
company in 1998. By the late 1990s, in addition to its continued
North
American popularity, Frito-Lay had become the top-selling
producer of
snack chips in South and Central America.
Topic Today
PepsiCo is divided into four business units: PepsiCo Americas
Foods
(PAF); PepsiCo Americas Beverages (PAB); PepsiCo Europe;
and PepsiCo
Asia, Middle East, and Africa (AMEA). The head of PepsiCo is
Indian-born
Nooyi, who became chief executive officer in 2006. She is
credited with
doubling PepsiCo’s global sales each year from 2007 to 2014,
and in
2014, Fortune magazine named her the third most powerful
businesswoman

7. in the world.
PepsiCo began the twenty-first century by acquiring a major
stake in
South Beach Beverage, the maker of SoBe products. In 2001,
PepsiCo and
Quaker Oats merged, providing PepsiCo with a line of products
that had
already been accepted by health-conscious consumers. In 2003,
the
carbonated soft drink Sierra Mist was introduced, and Frito-Lay
announced that it was removing all trans-fat from its snack line.
Izze
fruit drinks, Naked Juice, Bluebird Foods, and Stacy’s Pita
Chips were
added to PepsiCo’s line of products in 2006. Two years later,
PepsiCo
announced that it was investing $1 billion in expanding its
brands in
China and formed a partnership with the Japanese company
Calbee Foods.
In 2010, PepsiCo acquired Wimm-Bill-Dann, Russia’s leading
beverage
company, and a year later bought the Brazilian snack company
Mabel. By
that time, PepsiCo had also developed a presence in twenty-nine
Middle
Eastern markets.
Advertising has always been a major component of PepsiCo’s
success with
the company introducing the world’s first advertising jingle in
1939. In
2010, PepsiCo’s first global advertising campaign was shot
featuring
American rapper Nicki Minaj, who became a spokesperson for

8. the company.
PepsiCo spends hundreds of millions of dollars annually on
sponsoring
entertainment venues such as the Super Bowl and has forged
strong
relationships with professional baseball, football, and basketball
organizations. PepsiCo also sponsors the Pepsi Refresh Project,
which
awards grants to individuals and groups that work to improve
communities
around the world.
In the early twenty-first century, PepsiCo’s North American
market
beverage sales suffered in response to greater consumer
emphasis on
health and demands for sustainable practices. In addition to
increasing
automation in its manufacturing facilities and closing one
hundred
facilities, PepsiCo began placing greater emphasis on making
healthier
beverage products through the use of alternative sweeteners,
offering
7.5-ounce mini cans and 12-ounce glass bottles, improving
packaging, and
introducing a range of new products such as Pepsi Throwback,
Wild Cherry
Pepsi, and Pepsi Vanilla, which are all made with sugar rather
than
high-fructose corn syrup. In October 2014, the company
announced its
newest cola product, Pepsi True, which boasts 30 percent less
sugar than
regular Pepsi and no artificial sweeteners. Instead, the drink
contains

9. some sugar and stevia, a Paraguayan plant used for many years
as a
sweetener and found to have therapeutic uses as well, such as
helping to
control hypertension.
Innovation consistently plays a key role in PepsiCo’s marketing
tactics.
In May 2014 at the National Restaurant Association Show,
PepsiCo
introduced the Pepsi Spire, a state-of-the-art beverage dispenser
that
uses a touch screen to combine from 40 (Pepsi Spire 1.1) to
1,000 (Pepsi
Spire 5.0) beverage shots into a single selection.
Bibliography
Balakrishnan, Melodena Stephens, et al., eds. Actions and
Insights—Middle East, North Africa: East Meets West. Bingley:
Emerald
Group, 2013. Print.
Capparell, Stephanie. The Real Pepsi Challenge: The
Inspirational Story
of Breaking the Color Barrier in American Business. New York:
Wall
Street Jour. Books, 2007. Print.
Colvin, Geoff. "Indra Nooyi’s Pepsi Challenge." Fortune. Time,
29 May
2012. Web. 29 Aug. 2014.
Esterl, Mike, and Valerie Bauerline. "PepsiCo Wakes Up and
Smells the
Cola." Wall Street Jour. Dow Jones, 28 June 2011. Web. 29

10. Aug. 2014.
Jacobsen, Jessica. "Making Ideas a Reality." Beverage Industry
105.7
(July 2014): 18–29. Print.
"Global Food Products." Fast Market Research. Fast Market
Research, 30
Apr. 2014. Web. 29 Aug. 2014.
"Owned by PepsiCo." Behind the Brands. Oxfam, America, n.d.
Web. 15 Aug.
2014.
Strom, Stephanie. "For Pepsi, a Business Decision with Social
Benefit."
New York Times. New York Times, 21 Feb. 2011. Web. 29
Aug. 2014.
Stuckler, David, and Karen Siegel, eds. Sick Societies:
Responding to
the Global Challenge of Chronic Disease. New York: Oxford
UP, 2011.
Print.
Van den Bergh, Joeri, and Mattias Behrer. How Cool Brands
Stay Hot:
Branding to Generation Y. 2nd ed. London: Kogan Page, 2013.
Print.
Derived from: "PepsiCo." Salem Press Encyclopedia. Salem
Press. 2014.
_____
Copyright of Salem Press Encyclopedia is the property of Salem

11. Press.
The copyright in an individual article may be maintained by the
author
in certain cases. Content may not be copied or emailed to
multiple sites
or posted to a listserv without the copyright holder's express
written
permission. However, users may print, download, or email
articles for
individual use. Source: Salem Press Encyclopedia, January,
2017, 2p
Item: 87996580
PepsiCo: Is diversification a choice?
Week 3
Group Case Study Assignment
A. General instructions
1. Use UMUC’s Library (mainly) for research in this
assignment. Look for worldwide data, and not North America
data; remember; this is a global strategy course!!
2. Only use scholarly and reliable non-scholarly sources such as
Bloomberg, Reuters, Money, Forbes, and Fortune (no
answer.com, QuickMBA, eHow, Wikipedia…….).
3. Assignment should be supported by at least five scholarly
(peer-reviewed articles), and at least three reliable non-
scholarly sources; in addition to the weekly readings and
multimedia content listed in the classroom.
4. Assignment should be written in a paper format; not a
question and answer format.
5. A half page Introduction should be included. Also, Lessons
Learned and a Conclusion should be included at the end of the
case study.
6. All questions are to be attempted. Relate your answers to the
required reading. Do not restate the information from the case

12. study; go beyond the included information; analyze!
7. Paper should be 12-15 pages long, with one inch margins, 12
point font, double-spacing, and should be posted as a PDF
document. The cover page, reference list, and appendix are not
part of the page count. All graphics should be placed in the
appendix.
8. Use APA format for in-text citations and the reference list.
B. Questions:
1. Using UMUC’s Library databases; research the two main
industries that PepsiCo operates in. What are the changes and
trends in these industries?
2. Research the following three PepsiCo competitors and do a
SWOT analysis for them: Coca Cola, Snapple Dr. Pepper, and
Kraft.
3. Conduct a Porter’s Five Forces analysis of the non-alcoholic
beverage industry.
4. How are the organizational changes that PepsiCo
implemented impacting its performance? What role does
PepsiCo’s management play here?
5. If you were PepsiCo’s CEO: Should the company continue its
diversification away from the non-alcoholic business? What is
the impact on PepsiCo’s global operations?
6. What is PepsiCo’s future outlook from your perspective?
PepsiCo: Is diversification a choice?
Mohamed Ezz, MD, DM (UMUC)
PepsiCo (PEP)
www.pepsico.com
Overview
PepsiCo, a world leader in beverages, food, and snacks with net
revenues of more than $ 65 billion, has a product portfolio of 22
of the most iconic brands in the industry; each of which has
annual retail sales of more than one billions dollars. PepsiCo is
the world’s # 2 carbonated beverage maker. The company’s

13. brand portfolio includes (PepsiCo, 2016):
A. Beverages: Pepsi, 7-Up, Mountain Dew, Sierra Mist,
Mirinda, Gatorade, Tropicana, Lipton, and Aquafina.
B. Snacks: Doritos, Frito-Lay, Tostitos, Ruffles, Cheetos,
Fritos, Brisk, and Walkers,
C. Foods: Quaker Oates and Rice-A-Roni.
PepsiCo: History & Background (Hoovers, 2016)
Pepsi was invented in 1898 by pharmacist Caleb Bradham in
New Bern, North Carolina. He named his new drink Pepsi-Cola
and marketed it as a cure for indigestion and dyspepsia.
Bradham followed Coca-Cola’s bottling franchise model and by
World War I 300 bottlers had signed up. Following the war,
Bradham started stockpiling sugar to safeguard against rising
prices; however, in 1920 sugar prices plunged, leading to his
bankruptcy in 1923.
After changing ownership for some time, Loft Candy bought the
company in 1931. During the Depression (1939), the company
doubled the size of its bottles to 12 ounces without raising its
price, which helped improve its fortune. In 1939 Pepsi
introduced the first radio jingle in the world. In 1941, Loft
Candy merged with its Pepsi subsidiary to create the Pepsi Cola
Company.
The company acquired Mountain Dew in 1964 and Frito Lay in
1965, and changed its name to PepsiCo. In 1972 PepsiCo
began distributing Stolichnaya vodka in the States in return for
being the only Western firm allowed to bottle soft drinks in the
Soviet Union. PepsiCo bought Pizza Hut (1977), Taco Bell
(1978), and KFC (1986) and became a formidable force in the
fast food industry. In the period from 1991 - 1996 PepsiCo
aggressively expanded its international bottling operations;
however, it was no match Coca-Cola's well-oiled international
distribution machine. The Company then focused its attention to
the organization of its international network.

14. In 1997, PepsiCo spun off its $10 billion fast-food unit
(currently Yum! Brands), which better positioned to sell its soft
drinks at other restaurants. Also in 1997 PepsiCo bought Smith
snacks and Borden's Cracker Jack snack from United Biscuits.
In 1998, PepsiCo bought Seagram's Tropicana juices, the main
competitor to Coca Cola’s minute Maid for $3.3 billion. In
1999, the company sold a 65% stake in its new Pepsi Bottling
Group in an IPO. .
In 2001, PepsiCo bought the Quaker Oates Company for more
than $13 billion, and added the market leader Gatorade sports
drink brand to its portfolio The Company then sold its
competing All Sport energy drink to The Atlanta-based Monarch
Beverage Company.
In 2004 PepsiCo, attempted to create a joint-venture with the
Ocean Spray, the juice maker; however, the cranberry farmers
who own the company refused. In 2005, PepsiCo then bought
General Mill’s stake of their joint venture (Snack Ventures
Europe) (SVE) for $750 million creating Europe's largest snack
food company.
PepsiCo Organizational Structure
In 2003, PepsiCo started a major restructuring that created four
company divisions (Hoovers, 2016):
1. PepsiCo International
2. PepsiCo Beverages North America
3. Frito-Lay North America
4. Quaker Foods North America.
In its quest to become a fully integrated global beverage and
food company, PepsiCo announced in 2012 a new organizational
structure, where the regions retain P&L responsibility, while its
global groups operate across regions to fully leverage the scale
and power of the company (PepsiCo, 2012).
PepsiCo: Industries
PepsiCo operates in two industries mainly:

15. 1. Non-alcoholic beverages: Key economic drivers include: Per
capita soft drink consumption healthy eating index, per capita
disposable income, per capita sugar and sweetener consumption,
and price of corn. Producers are expected to refresh their
product lines to decelerate falling demand (Ibis World, 2016).
2. Snacks: Key economic drivers include: Per capita disposable
income, healthy eating index, and price of corn. More
innovative flavors and healthier foods will boost industry
growth (Ibis World, 2016).
Snack food producers also compete with substitute snacks such
as cookies, crackers and granola bars. Also, healthier brand
extensions of regular crackers and cookies, including organic
and reduced-fat varieties, have boosted demand for snacks. In
addition, increased snacking in the morning has led consumers
to snack on more granola bars and cereal (Ibis World, 2016).
PepsiCo: Competition
A. Non-alcoholic beverages
Table 1: PepsiCo: Competition
2015 Key Figures
PepsiCo
Coca Cola
Mondelez International
Dr Pepper Snapple Group
Annual Sales
$63.06B
$44.29B
$29.64B
$6.28B
Employees
263,000
123,200
99,000

16. 19,000
Market Cap
$145.58B
$185.76B
$70.85B
$17.51B
Source: Hoover (2016)
Table 2: PepsiCo Competitors’ financial performance
2015 Profitability
PepsiCo
Coca Cola
Mondelez International
Dr Pepper Snapple Group
Industry Median
Market Median
Gross Profit Margin
55.20%
60.22%
39.20%
59.50%
35.28%
39.35%
Pre-Tax Profit Margin
11.53%
20.38%
28.02%
19.33%
0.06%
6.76%
Net Profit Margin
8.23%
16.59%
26.46%
12.49%
3.60%

17. 5.68%
Return on Equity
38.27%
27.08%
28.66%
36.50%
0.38%
5.93%
Return on Assets
7.39%
7.98%
11.70%
9.50%
0.05%
1.85%
Source: Hoover (2016)
Cola wars: There is a never-ending war for the domination of
the global carbonated beverage markets, between PepsiCo and
Coca Cola, as well as Dr Pepper Snapple (DPS) and a host of
other smaller rivals. The continuing decrease in per-capita
consumption of soda and falling profits have forced the
beverage companies to increasingly depend on their other
business lines; especially the snacks industry. However, that
change has not been easy (CBS News, 2015).
When Coca-Cola changed its Coke formula in 1985, Pepsi had a
short-lived triumph in the cola wars, until Coca Cola
reintroduced the Coca-Cola classic, after the new formula
proved to be a failure. In 1991, the rivalry between the two
companies was extended to ready-to-drink tea. As a response to
Coca-Cola's Nestea venture with Nestle’, PepsiCo joined forces
with Lipton (Hoovers, 2016)).
Coca-Cola shares have risen about 12% in 2014; while
PepsiCo’s share rose 25%, the company being more diversified.
Dr. Pepper Snapple Group’s shares surged more than 62% as all

18. its operations are in North America and had no currency
exposure. S&Ps forecasts a continued decline in the carbonated
beverage business as consumers seek healthier alternatives
(CBS News, 2015).
B. Snacks
Kraft Heinz Company
In July 2015 Kraft joined Heinz to create The Kraft Heinz
Company, the world’s fifth largest food and beverages company
(and third in North America) with combined revenues of $ 29
billion. The company’s portfolio includes (Hoovers, 2016):
1. Kraft natural and processed cheeses.
2. Beverages (Maxwell House coffee and Kool-Aid drinks)
3. Convenient meals (Oscar Mayer meats, Lunchables, and Kraft
mac 'n cheese)
4. Grocery fare (Cool Whip topping, Velveeta, and Shake N'
Bake coatings)
5. Nuts (Planters).
6. Ketchup line (Heinz).
PepsiCo: Advertising
In 2015, PepsiCo’s advertising expenses amounted to $ 2.4
billion (Statista, 2016).
Pepsi realized that being interrupted by ads can be annoying.
Accordingly, the company’s newest 2016 ad campaign involves
five-second ad for its new emoji-clad soda bottles. The ads will
roll out all summer on TV and online. The campaign is an
attempted by PepsiCo to slow down the consumer trend of
moving towards healthier non-sugary options. PepsiCo is
betting that the less disruptive advertising and the emojis will
lure its consumers in, as they appeal to most people (USA
Today, 2016).
PepsiCo is planning to market the more than 70 globally and

19. locally specially designed emoji bottles and cans in more than
100 global markets this year (including the U.S.), drastically
expanding a campaign that started last year in Canada,
Thailand, and Russia, Canada and Thailand (Advertising Age,
2016)
PepsiCo Financials
Products and Operations(Hoovers, 2016)
Table 3: Country-wise sales 2013-2014
Country
$ million
% of
total
$ million
% of
total
2013 Sales
2014 Sales
US
33,626
50
34,219
51
Russia
4,908
7
4,414
7
Mexico
4,347
7
4,113
6
Canada
3,195
5

20. 3,022
5
UK
2,115
3
2,174
3
Brazil
1,835
3
1,790
3
Other
16,389
25
16,951
25
Total
66,415
100
66,683
100
Table 4: Product-wise sales 2014
20154 Sales
$ million
% of
total
PepsiCo Americas Beverages
21,154
31
Frito-Lay North America
14,502
22
Europe

21. 13,290
20
Latin America Foods
8,442
13
Asia, Middle East & Africa
6,727
10
Quaker Foods North America
2,568
4
Total
66,683
100
Table 5 In-depth earnings estimates (Hoovers, 2016)
Table 6: Earnings estimates and forecast (Hoover, 2016)
Table 7: Basic Financial Information (PepsiCo, 2016)
PepsiCo: Basic Financial Information (PepsiCo, 2016)
Sales (2015)
$ 63 billion
Sales Growth (vs. 2014)
5.4%
Net Income (2015)
$ 5.5 billion
Net Income Growth (vs. 2014)
16.3%

22. 1
Table 8:
PepsiCoAnnual Data (Yahoo! Finance, 2016)All numbers in
thousands
Period Ending
Dec 26, 2015
Dec 27, 2014
Dec 28, 2013
Total Revenue
63,056,000
66,683,000
66,415,000
Cost of Revenue
28,384,000
30,884,000
31,243,000
Gross Profit
34,672,000
35,799,000
35,172,000
Operating Expenses
Research Development
-

23. -
-
Selling General and Administrative
24,885,000
26,126,000
25,357,000
Non Recurring
1,359,000
-
-
Others
75,000
92,000
110,000
Total Operating Expenses
-
-
-
Operating Income or Loss
8,353,000
9,581,000
9,705,000

24. Income from Continuing Operations
Total Other Income/Expenses Net
59,000
85,000
97,000
Earnings Before Interest And Taxes
8,412,000
9,666,000
9,802,000
Interest Expense
970,000
909,000
911,000
Income Before Tax
7,442,000
8,757,000
8,891,000
Income Tax Expense
1,941,000
2,199,000
2,104,000
Minority Interest
(49,000)

25. (45,000)
(47,000)
Net Income From Continuing Ops
5,452,000
6,513,000
6,740,000
Non-recurring Events
Discontinued Operations
-
-
-
Extraordinary Items
-
-
-
Effect Of Accounting Changes
-
-
-
Other Items

26. -
-
-
Net Income
5,452,000
6,513,000
6,740,000
Preferred Stock And Other Adjustments
-
-
-
Net Income Applicable To Common Shares
5,452,000
6,513,000
6,740,000
References
Advertising Age (2016). Pepsi preps global emoji can and bottle
campaign. Retrieved on May 9th from
http://adage.com/article/cmo-strategy/pepsi-preps-global-emoji-
bottle-campaign/302748/
CBS News (2015). Coke, Pepsi and the new front in the cola
wars. Retrieved on May 9th from

27. http://www.cbsnews.com/news/coke-pepsi-and-the-new-front-
in-the-cola-wars/
Hoovers (2016). Kraft Heinz Company. Retrieved from
www.hoovers.com
Hoovers (2016). PepsiCo. Retrieved from www.hoovers.com
Ibis World (2016). Ibis industry report: Snack food production
in the U.S. Retrieved on May 10th from www.ibisworld.com
PepsiCo (2016). Annual reports and proxy information.
Retrieved on May 9th from
http://www.pepsico.com/Investors/Annual-Reports-and-Proxy-
Information
PepsiCo (2016). Brand explorer. Retrieved on May 9th from
http://www.pepsico.com/Brands/BrandExplorer
PepsiCo (2012). PepsiCo announces new global structure and
leadership to drive continued growth. Retrieved on May 9th
from http://www.prnewswire.com/news-releases/pepsico-
announces-new-global-structure-and-leadership-to-drive-
continued-growth-142287945.html
Statista (2016). PepsiCo's advertising expenses worldwide.
Retrieved on May 9th from
http://www.statista.com/statistics/286547/pepsico-advertising-
spending-worldwide/
USA Today (2016). Pepsi goes for brevity with five-second ads
for emoji bottles. Retrieved on May 9th from
http://www.usatoday.com/story/money/2016/04/25/pepsi-emoji-
ad-campaign-5-second-ads/83494216/
Yahoo! Finance (2016). PepsiCo Income Statement. Retrieved
on May 9th from https://finance.yahoo.com/q/is?s=PEP&annual