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COMPANY PROFILE
PepsiCo Inc
REFERENCE CODE: 26FFE4D9-E51D-4F5B-AC02-
76DC923525A7
PUBLICATION DATE: 22 Oct 2018
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PepsiCo Inc
TABLE OF CONTENTS
PepsiCo Inc
© MarketLine
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TABLE OF CONTENTS
Company Overview
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Key Facts
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Business Description
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...... 4
History
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Key Employees
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.............. 41
Key Employee Biographies
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Major Products & Services
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SWOT Analysis
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.............. 49
Top Competitors
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............ 55
Company View
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............... 56
Locations And Subsidiaries
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PepsiCo Inc
Company Overview
PepsiCo Inc
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Company Overview
COMPANY OVERVIEW
PepsiCo Inc (PepsiCo) is a manufacturer of a wide range of
beverages, foods and snacks. It sells
products under various brands including Pepsi, Pepsi Max,
Mountain Dew, Diet Pepsi, Lay's, Frito-Lay,
Doritos, 7-Up, Tropicana, Aquafina, Mirinda, Gatorade and
Quaker, V Water, Ya, Tostitos, Simba and
Trop 50. PepsiCo distributes its products through direct-store-
delivery, customer warehouse and
foodservice, and vending distribution networks. Its customers
include grocery stores, drug stores,
convenience stores, discount/dollar stores, mass merchandisers,
membership stores, wholesale and
other distributors, e-commerce retailers and authorized
independent bottlers. It has business operations
across North America, South America, Europe, Asia-Pacific, the
Middle East and Africa. PepsiCo is
headquartered in Purchase, New York, the US.
The company reported revenues of (US Dollars) US$63,525
million for the fiscal year ended December
2017 (FY2017), an increase of 1.2% over FY2016. In FY2017,
the company’s operating margin was
16.5%, compared to an operating margin of 15.6% in FY2016.
In FY2017, the company recorded a net
margin of 7.6%, compared to a net margin of 10.1% in FY2016.
Key Facts
KEY FACTS
Head Office PepsiCo Inc
700 Anderson Hill Road
Purchase
New York
Purchase
New York
USA
Phone 1 914 2532000
Fax 1 914 2532070
Web Address www.pepsico.com
Revenue / turnover (USD Mn) 63,525.0
Financial Year End December
Employees 263,000
New York Stock Exchange Ticker PEP
PepsiCo Inc
Business Description
PepsiCo Inc
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Business Description
BUSINESS DESCRIPTION
PepsiCo Inc (PepsiCo), a food and beverage company, markets,
distributes and sells salty, sweet and
grain based snacks, food products, carbonated and non-
carbonated beverages in approximately 200
countries and territories worldwide.
The company operates through six reportable segments: North
America Beverages (NAB), Frito-Lay
North America (FLNA), Europe Sub-Saharan Africa (ESSA),
Latin America, Asia, Middle East and North
Africa (AMENA) and Quaker Foods North America (QFNA),
which accounted for 33%, 24.9%, 17.4%,
11.3%, 9.5% and 3.9% of the company's total revenue,
respectively, in FY2017.
The company conducts a variety of (R&D) activities and
continues to invest to augment its growth and
drive innovation worldwide. Its R&D focuses on the
development of nutritious and convenient beverages,
foods and snacks, meeting changing consumer demands and
preferences. In FY2017, the company
spent US$737 million on R&D, which was 1.2% of its revenue
and decreased 3% YoY. It has R&D
facilities in Brazil, China, India, Mexico, Russia, the UAE, the
UK and the US.
PepsiCo has three snack plants in Mexico, and one each in
Egypt and Australia; a snack, beverage and
dairy plant in Russia; a food plant in in the US; a fruit juice
plant in Belgium; a beverage plant in Egypt;
and two concentrate plants in Ireland.
The company distributes its products through direct-store-
deliveries (DSD), customer warehouse and
distributor networks to various wholesale and other distributors,
foodservice customers, grocery stores,
drug stores, convenience stores, discount/dollar stores, mass
merchandisers, membership stores, e-
commerce retailers and authorized independent bottlers. In
addition, it authorizes various independent
bottlers to produce certain beverage products in specific
geographic regions. PepsiCo also supplies food
and snacks to various restaurants, businesses, schools and
stadiums through various third-party
foodservice and vending distributors and operators.
PepsiCo Inc
History
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History
HISTORY
Contracts/Agreements
Year: 2018
In January, the company entered into a strategic partnership
with Varun Beverages Ltd.
New Products/Services
Year: 2018
In January, the company introduced MTN DEW ICE, a new
carbonated soft drink made with a splash of
real juice.
Plans/Strategy
Year: 2018
In February, the company's subsidiary Frito-Lay announced to
launch a special kind of Dorito chips.
Acquisitions/Mergers/Takeovers
Year: 2018
In February, Clayton, Dubilier & Rice and American Greetings
agreed to acquire 60% stake in American
Greetings.
New Products/Services
Year: 2018
In February, PepsiCo launched a new sparkling water, bubly,
that combines refreshing and delicious
flavors.
New Products/Services
Year: 2018
In January, the company’s Frito-Lay division introduced Doritos
Blaze, a new snack flavor.
New Products/Services
PepsiCo Inc
History
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Year: 2018
In February, the company launched a new Drinkfinity flavored
water system in the US.
New Products/Services
Year: 2018
In February, the company launched a new personalized
beverage, Drinkfinity to fit the individual lifestyles
of today's busy go-getters.
Contracts/Agreements
Year: 2018
In February, PepsiCo extended its partnership with the UEFA
Champions League for further three years.
Contracts/Agreements
Year: 2018
In January, PepsiCo along with the National Hockey League
Players' Association and the National
Hockey League entered into a multi-year extension for
exclusive NHL North American rights in the non-
alcoholic beverage, sports nutrition and savory snack
categories.
Contracts/Agreements
Year: 2018
In January, PepsiCo entered into a partnership with NFL,
Aramark, the US Bank Stadium and the
Minnesota Sports Facilities Authority announced Rush2Recycle,
a game plan to recover more than 90% -
more than 40 tons - of stadium waste at Super Bowl LII.
New Products/Services
Year: 2018
In March, PepsiCo introduced a new baby food production line
to its infant nutrition plant in Omsk,
Russia.
Plans/Strategy
Year: 2018
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In March, the company plans to build a new distribution plant in
Chesterfield, Virginia, the US.
New Products/Services
Year: 2018
In May, the company introduced new diet and regular pepsi cans
with in 20oz and 12oz formats.
New Products/Services
Year: 2018
In May, PepsiCo Foodservice launched an online platform,
PepsiCo Partners, expanding its business into
an ecommerce segment.
Acquisitions/Mergers/Takeovers
Year: 2018
In May, the company agreed to acquire Bare Foods Co, a baked
fruit and vegetable snack maker,
expanding its snack portfolio.
Product Recall
Year: 2018
In May, PepsiCo Foods Canada announced the voluntary recall
of 750 bags of its Ruffles Regular-
flavoured potato chips due to an unintentional filling of bags
with Ruffles Sour Cream 'N Onion-flavoured
potato chips.
Contracts/Agreements
Year: 2018
In June, PepsiCo North America Nutrition partnered with a
nonprofit food and beverage incubator, The
Hatchery Chicago for the Chicago incubator project.
Contracts/Agreements
Year: 2018
In July, the company awarded a contract to Eddie Stobart for
managing its ambient transport operations
in England and Wales from existing distribution centres in
Birchwood and Leicester, the UK.
Plans/Strategy
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Year: 2018
In July, the company planned to launch The Hive, a new center
for innovation to assist cultivate its niche
brands.
Contracts/Agreements
Year: 2018
In July, PepsiCo Foodservice and CS Group extended their
distribution agreement to distribute CS
Group's Cool Attitudes Craft Mixers in the US.
Plans/Strategy
Year: 2018
In July, the company's Frito-Lay division plans to release the
most chip flavors to give fans a regionally
inspired Summer Of Flavor.
Plans/Strategy
Year: 2018
In July, the company's product, Lay's announced its plans to
introduce eight regional potato chip flavors.
Contracts/Agreements
Year: 2018
In July, the company entered into a partnership with the
Madison Square Garden to become the exclusive
non-alcoholic beverage and salty snack partner across MSG
Venues.
Plans/Strategy
Year: 2018
In July, the company plans to improve the nutritional value of
some of its best selling products in line
through its Results with Responsibility initiative.
Plans/Strategy
Year: 2018
In July, the company announced its plans to invest US$159
million for expanding two Frito-Lay snack
PepsiCo Inc
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manufacturing plants in Frankfort, Indiana, the US.
Financing Agreements
Year: 2018
In August, the company planned to invest US$100 million to
expand and renovate a food factory in
Shanghai, China.
New Products/Services
Year: 2018
In August, the company relaunched its Quaker cereals in the UK
with less sugar.
Plans/Strategy
Year: 2018
In August, the company plans to invest US$159million to
expand its Frito-Lay production site in Frankfort,
Indiana.
Contracts/Agreements
Year: 2018
In August, the company entered into a multiyear agreement with
Marriott International as a beverage
provider to expand their relationship.
Acquisitions/Mergers/Takeovers
Year: 2018
In August, the company announced its plans to acquire Israel-
based carbonated water machines supplier,
SodaStream for US$3.2 billion.
New Products/Services
Year: 2018
In August, the company launched the Hive, a new entity in
North America.
New Products/Services
Year: 2018
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In September, the company launched its Nutrition Greenhouse
accelerator program to discover and
support emerging brands in the food and beverage sector in
North America.
Contracts/Agreements
Year: 2018
In September, the company joined NaturALL Bottle Alliance, a
consortium formed between Danone,
Nestle Waters and Origin Materials to develop bio-based
bottles.
Contracts/Agreements
Year: 2018
In September, the company announced to expand its global
relationship with HH Global to offer
marketing execution services and to enhance their presence.
New Products/Services
Year: 2018
In September, the company's salty snacks division introduced
three new flavors under its brand, Kurkure.
Others
Year: 2018
In September, PepsiCo announced new Rubtsovsk dairy plant
investment projects in Russia.
Contracts/Agreements
Year: 2018
In October, the company partnered with Loop to introduce
recycled plastic packaging.
Contracts/Agreements
Year: 2018
In October, Pepsi signed a memorandum of understanding with
Odisha State Government to build a
potato chips unit in Odisha, India.
Others
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Year: 2018
In October, the company launched its carbonated beverage
portfolio in takeaway glass bottles for
consumers in Maharashtra, India.
Contracts/Agreements
Year: 2018
In October, Pspsico selected Jubilant Foodworks as its new
beverage partner for Domino’s Pizza India.
Acquisitions/Mergers/Takeovers
Year: 2018
In October, the company announced the acquisition of Health
Warrior, Inc.
Acquisitions/Mergers/Takeovers
Year: 2018
In November, the company announced its plans to acquire
Lincolnshire crisp company, Pipers Crisps.
Contracts/Agreements
Year: 2017
In February, the company entered into an agreement to change
its naked juice labels in the US.
Business / Operations Closure
Year: 2017
In March, the company announced to close its Walkers Snacks
factory in Peterlee, County Durham,
England.
Contracts/Agreements
Year: 2017
In March, the company introduced Pepsi Max Ginger, a new
sugar-free addition to the Max line-up.
Contracts/Agreements
Year: 2017
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In April, the company's Foodservice and Papa John’s
International renewed its multi-year beverage
contract in the US and a global expansion of the partnership in
eight countries throughout Europe, the
Middle East and Central America.
Contracts/Agreements
Year: 2017
In March, the company's Frito-Lay division and Lay's partnered
to introduce Poppables, a new potato
snack.
Plans/Strategy
Year: 2017
In May, Pepsi planned to sell stake in its UK bottler Britvic.
Acquisitions/Mergers/Takeovers
Year: 2017
In May, the company announced plans to acquire coconut water
brand, Vita Coco.
Others
Year: 2017
In June, the company announced to launch LIFEWTR Series 2
bottle with labels designed by female
artists.
New Products/Services
Year: 2017
In March, the company's Mtn Dew announced a plan to
introduce a line of premium sodas with crafted
unique flavors and herbal and citrus bitters.
New Products/Services
Year: 2017
In March, the company introduced three new flavors Orange
Mango, Lemon Lime and Strawberry Melon
in IZZE FUSIONS beverages.
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Contracts/Agreements
Year: 2017
In March, the company entered into a collaboration agreement
with Danimer Scientific for the
development of Danimer Scientifics’ biodegradable film resins
to meet the sustainable flexible packaging
requirements of PepsiCo’s global food and beverage business.
Contracts/Agreements
Year: 2017
In May, the company's Lipton partners with Food Network Star
and The Series Co-Host, Chef Bobby Flay
to host lipton summer camp.
Contracts/Agreements
Year: 2017
In May, the company entered into a partnership agreement with
Healthier America to independently
report and verify the company's progress.
New Products/Services
Year: 2017
In May, the company introduced new limited-edition beverage,
Pepsi Fire.
Contracts/Agreements
Year: 2017
In May, PepsiCo Greater China Region entered into a strategic
agreement with Alibaba Group to
introduce innovative marketing initiatives, customized products
and integrated omnichannel solutions.
New Products/Services
Year: 2017
In May, the company introduced a new sparkling lemonade
LEMON LEMON.
Corporate Changes/Expansions
Year: 2017
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In June, the company opened its nacho chip brand Doritos in
India at its Kolkata plant.
Contracts/Agreements
Year: 2017
In July, the company became the funding partner to National
nonprofit The Recycling Partnership.
New Products/Services
Year: 2017
In July, Ruffles Brand Potato Chips, one of the marquee brands
from PepsiCo's Frito-Lay division
introduced Chips & Sips.
New Products/Services
Year: 2017
In August, Doritos, one of the marquee brands from PepsiCo's
Frito-Lay Division introduced new Blazin'
Buffalo Mix, a combination of four fan-favorite flavors -
Chipotle, Cool Ranch, Blue Cheese.
New Products/Services
Year: 2017
In November, the company launched salted caramel flavor in the
market.
Contracts/Agreements
Year: 2017
In November, Suntory Beverage & Food Asia entered into
agreement to acquire a 51% share in
International Refreshment, a beverage operation of PepsiCo.
Contracts/Agreements
Year: 2017
In December, the company, the PepsiCo Foundation and the
Inter-American Development Bank created
the Hydro-BID Support Center in Latin America and the
Caribbean, for Water Management.
New Products/Services
Year: 2017
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In November, Doritos, the company's Frito-Lay Division,
introduced Doritos Crunch Nuts and Doritos
Crunch Mix.
Contracts/Agreements
Year: 2017
In September, the company's Mountain Dew and AMC partnered
to launch its new augmented reality
app, "The Walking Dead Encounter" with the experience of
zombie walkers.
Contracts/Agreements
Year: 2017
In November, the company partnered with Suntory Beverage &
Food Asia Pte Ltd., to form a beverage
joint venture in Thailand.
Contracts/Agreements
Year: 2017
In July, the company and Molson Coors partnered to provide bar
snacks as part of its on-premise delivery
service.
New Products/Services
Year: 2016
The company's subsidiary The Quaker Oats Company launched
a new Quaker Breakfast Flats.
New Products/Services
Year: 2016
The company's brand Aquafina, introduced a new line of
flavored sparkling water to its menu.
New Products/Services
Year: 2016
The company’s subsidiary The Quaker Oats Company launched
Quaker SuperGrains Instant Hot Cereal
and Real Medleys SuperGrains Granola for breakfast.
New Products/Services
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Year: 2016
The company’s brand Aquafina, launched Aquafina Sparkling,
flavored sparkling water.
New Products/Services
Year: 2016
The company introduced Mtn Dew Black Label, a carbonated
soft drink.
New Products/Services
Year: 2016
The company expanded its product line Brisk by introducing a
new Brisk Mate, a smooth energizing iced
tea blended with South American yerba mate.
New Products/Services
Year: 2016
The company’s brand Doritos introduced Doritos Mix, a unique
combination of four different Doritos
shapes and flavors in one bag.
Corporate Changes/Expansions
Year: 2016
The company announced plans to open Kola House, the first
experimental kola bar, restaurant, lounge
and event space, in the New York, the US.
New Products/Services
Year: 2016
The company’s subsidiary The Quaker Oats Company launched
a new line of gluten free oatmeal.
Contracts/Agreements
Year: 2016
The company entered into a collaboration agreement with
Senomyx, Inc., to restat Senomyx's Sweet
Taste Program.
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Acquisitions/Mergers/Takeovers
Year: 2016
The company announced plans to acquire KeVita Inc., a
probiotic US drinks company.
Litigation
Year: 2016
The company's Quaker Oats was sued by consumers in the US
states of New York, California and
Illinois, for false advertising over the ingredients in its product.
Acquisitions/Mergers/Takeovers
Year: 2016
The company entered into a definitive agreement to acquire
KeVita.
New Products/Services
Year: 2016
In December, the company launched a new premium priced
bottled water, dubbed Lifewtr in the US.
Contracts/Agreements
Year: 2016
In October, PepsiCo entered into a collaboration with TB
Alliance to improve the treatment for children
with tuberculosis.
New Products/Services
Year: 2016
In September, the company launched a new 100% juice with
probiotics, Tropicana Essentials Probiotics.
Acquisitions/Mergers/Takeovers
Year: 2016
In May, Trian Fund Management sold stake to PepsiCo for
US$2 billion.
Contracts/Agreements
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Year: 2015
The company signed a cooperation agreement with OAO
Lidskoe Pivo to sell, distribute and market its
products in Belarus.
New Products/Services
Year: 2015
The company announced its plans to launch stevia-sweetened
Pepsi True in stores across Denver,
Minneapolis and Washington, the US.
New Products/Services
Year: 2015
The company launched two new flavors of its brand, Mountain
Dew in the US.
New Products/Services
Year: 2015
The company started to sell imported premium snacks and fruit
juices in India through exclusive e-
commerce platforms.
Business / Operations Closure
Year: 2015
The company announced its plans to close one of its plants in
Russia.
Plans/Strategy
Year: 2015
The company announced its plan to expand production in Egypt
with an investment of US$500 million.
New Products/Services
Year: 2015
The company introduced a citrus-flavoured soft drink called
DewShine under its Mountain Dew brand.
Contracts/Agreements
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Year: 2015
PepsiCo Americas Beverages entered a marketing alliance with
Live Nation Entertainment, Inc., a leading
live entertainment firm.
Corporate Changes/Expansions
Year: 2015
The company launched 7UP Revive brand in India.
New Products/Services
Year: 2015
The company's brand Mountain Dew launched Mtn Dew Baja
Blast and Mtn Dew Sangrita Blast for a
limited period.
New Products/Services
Year: 2015
The company launched chocolate peanut butter flavored popcorn
under its Cracker Jack brand.
New Products/Services
Year: 2015
The company launched Doritos Jacked 3D tortilla snacks under
its Doritos brand.
New Products/Services
Year: 2015
The company introduced Cheetos Sweetos Snacks under the
Cheetos brand.
Contracts/Agreements
Year: 2015
The company entered into a partnership with Pepsi-Cola
Products Philippines, Inc., for development of
Cheetos in the Philippines.
Commercial Operation
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Year: 2015
The company announced to invest US$12 million to modernize
its Frito-Lay plant in Cambridge to make
the production lines more efficient and ergonomically safe.
Plans/Strategy
Year: 2015
The company announced to continue selling its aspartame-
sweetened diet Pepsi online after removing
the artificial sweetener from the product.
Contracts/Agreements
Year: 2015
The company expanded its partnership with SodaStream
International Ltd to strengthen sales of its
branded cola caps.
Contracts/Agreements
Year: 2015
The company partnered with JD.com Inc., to introduce the
Quaker oat dairy drink to the consumers in
China.
Contracts/Agreements
Year: 2014
The company entered into Strategic Alliance agreement with
Shanghai Disney Resort as a primary
beverage supplier.
New Products/Services
Year: 2014
The company launched a new Cheetos Flamin’ Hot / Doritos
Dinamita Chile Limon in a combo pack.
Contracts/Agreements
Year: 2014
The company entered into an agreement with Cartoon Network
Amazone to provide food and beverage
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to the Cartoon Network's themed park.
New Products/Services
Year: 2014
The company's Frito-Lay division launched a new snack, Near
East Multigrain Chips.
Corporate Changes/Expansions
Year: 2014
The company’s Frito-Lay division expanded distribution of
Lay's Air Pops crisps in California and the
Pacific Northwest region of the US with new Salt & Vinegar
flavor.
Contracts/Agreements
Year: 2014
The company extended its collaborative agreement to use
Senomyx’s sweet flavor ingredients in non-
alcoholic beverages till August 2016.
New Products/Services
Year: 2014
The company launched three models of Pepsi Spire dispensers.
Corporate Changes/Expansions
Year: 2014
PepsiCo and its local bottler in Myanmar, Lotte MGS Beverages
announced commencement of local
production of Pepsi-Cola for the first time since 1997.
Corporate Changes/Expansions
Year: 2014
The company entered into a joint venture agreement with
German dairy company Theo Muller and
formed Wave Holdings to establish US$206 million yogurt
facility in Batavia, New York, the US.
Corporate Changes/Expansions
Year: 2014
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PepsiCo South Africa opened a new Simba manufacturing
facility in Prospecton, KwaZulu-Natal, South
Africa.
Contracts/Agreements
Year: 2014
The company renewed its partnership of over 16 years with the
Papa Murphy's Holdings, Inc., a
franchisor and operator of Take ‘N’ Bake pizza chain based in
the US.
Corporate Changes/Expansions
Year: 2014
PepsiCo and Almarai announced to invest US$345 million in
Egypt over the next five years through Beyti,
a subsidiary of International Dairy & Juice Ltd.
Corporate Changes/Expansions
Year: 2014
The company opened a new research and development facility in
Dubai, the UAE.
Corporate Changes/Expansions
Year: 2014
The company opened a new snack production plant in Dammam,
Saudi Arabia.
New Products/Services
Year: 2014
The company's Quaker Oats division launched Quick 3-Minute
Steel Cut Oatmeal and Real Medleys
Super Grains products.
Contracts/Agreements
Year: 2014
The company's subsidiary PepsiCo Foods Vietnam Company
signed a Memorandum of Understanding
with the Department of Agriculture and Rural Development and
the Phivang Collaboration of Farmers in
Vietnam to introduce a sustainable contract potato farming
model into Vietnam.
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New Products/Services
Year: 2014
Quaker Oats, a division of PepsiCo launched Quaker Instant
Oats Caldo, an exciting, innovative and
nutritious new range of instant porridge products across the
Philippines.
New Products/Services
Year: 2013
The company expanded the Tropicana portfolio in India by
adding three new variants of juices.
New Products/Services
Year: 2013
The company’s Mountain Dew unit launched a sparkling juice
beverage called Kickstart, in two flavors,
Orange Citrus and Fruit Punch.
Contracts/Agreements
Year: 2013
PepsiCo and Tata Global Beverages entered in to an agreement
to form a joint venture for non-
carbonated ready to drink health and wellness drinks.
Corporate Changes/Expansions
Year: 2013
Muller Quaker Dairy, a joint venture between PepsiCo and The
Muller Group, open a new ‘state of the art’
yogurt production site in Batavia, New York.
Corporate Changes/Expansions
Year: 2013
The company opened baking innovation center in Apodaca,
Nuevo Leon, Mexico.
Corporate Changes/Expansions
Year: 2013
PepsiCo announced that it would be investing around US$5.5
billion over six years in expansion of its
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operations in India.
Contracts/Agreements
Year: 2013
PepsiCo (49%) and Suntory Holdings (51%) entered into a joint
venture in Vietnam, establishing Suntory
PepsiCo Vietnam Beverage (SPVB).
Research and Development
Year: 2012
The company opened an R&D center in Shanghai.
Acquisitions/Mergers/Takeovers
Year: 2012
The company formed an alliance with Ocean Spray Cranberries,
Inc. to distribute cranberry and blueberry
based beverages in Latin America.
Commercial Operation
Year: 2012
The company opened a food manufacturing plant in Wuhan,
China.
Commercial Operation
Year: 2012
The company opened a beverage plant in China along with
Tingyi (Cayman Islands) Holding Corp.
Others
Year: 2012
Mountain Dew, Brisk and Starbucks join PepsiCo’s billion
dollar brand list, taking the number to 22.
Contracts/Agreements
Year: 2012
PepsiCo announced an agreement with Diamond Star, one of the
largest consumer packaged goods
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distributors in Myanmar to import, sell and distribute Pepsi-
Cola, 7-Up and Mirinda.
New Products/Services
Year: 2012
The company launched Pepsi Next brand.
Stake Sale
Year: 2012
The company's minority stake was acquired by Relational
Investors LLC.
Contracts/Agreements
Year: 2011
Burger King Corporation selected PepsiCo as the exclusive soft
drink supplier in more than 1,000 of its
restaurants throughout Latin America and Caribbean region.
Contracts/Agreements
Year: 2011
Atlanta's Stevi B's awarded exclusive beverage pouring rights in
all of its 44 locations to PepsiCo.
Contracts/Agreements
Year: 2011
Grupo Embotelladoras Unidas, S.A.B. de C.V. (GEUPEC),
Empresas Polar and PepsiCo signed an
agreement to create a nationwide beverage company in Mexico.
Contracts/Agreements
Year: 2011
The company and Strauss Group planned to form a joint venture
to produce and sell fresh dips and
spreads in markets outside of North America.
Contracts/Agreements
Year: 2011
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 26
The company signed an agreement with The University of
Delaware for exclusive beverage pouring rights
on Newark and Wilmington campuses.
Contracts/Agreements
Year: 2011
The company entered into an Exclusive Bottling Appointment
with the Alokozay Group of Companies to
manufacture and distribute a range of PepsiCo beverages in
Afghanistan.
Contracts/Agreements
Year: 2011
The company and the Inter-American Development Bank (IDB)
partnered to foster social and economic
growth in Latin America and the Caribbean.
Contracts/Agreements
Year: 2011
The company began offering five options of eco-friendly,
recyclable and compostable cups to foodservice
customers in the US.
Acquisitions/Mergers/Takeovers
Year: 2011
PepsiCo acquired 66.00% of Wimm-Bill-Dann Foods OJSC, a
Russia-based branded food-and-beverage
company.
Acquisitions/Mergers/Takeovers
Year: 2011
The company acquired Mabel, a leading producer of biscuits
and snacks in Brazil.
Acquisitions/Mergers/Takeovers
Year: 2011
PepsiCo and Tingyi Holding, a major food and beverage
company in China, announced that they had
agreed to form a strategic alliance in China.
Contracts/Agreements
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 27
Year: 2011
The company signed a multi-year agreement with Burger King
Corporation to become its soft drink
provider for restaurants in Latin America and the Caribbean.
Contracts/Agreements
Year: 2010
PepsiCo Beverages Americas entered into an agreement with
The FRS Company to distribute its FRS
Healthy Energy brand of products,
Contracts/Agreements
Year: 2010
The company signed a four-year collaborative agreement with
Senomyx, Inc., a company focused on
using proprietary technologies, to discover and develop novel
flavor ingredients for the food, beverage,
and ingredient supply industries.
Contracts/Agreements
Year: 2010
PepsiCo and GNC, a specialty retailer of nutritional products,
signed a joint venture agreement to develop
and sell fortified coconut water products under the newly
created Phenom brand name.
Contracts/Agreements
Year: 2010
The company’s division, Pepsi Beverages Company, and
Tampico Beverages, Inc. signed a distribution
agreement to distribute TAMPICO PLUS fruit-flavored
beverage products through PepsiCo's direct store
delivery system in select US markets.
Contracts/Agreements
Year: 2010
The company signed an agreement with the VSIP Bac Ninh Co.
Ltd, to develop a beverage production
plant in the VSIP Bac Ninh Integrated Township and Industrial
Park.
Acquisitions/Mergers/Takeovers
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 28
Year: 2010
Pepsi Beverages Company acquired Pepsi-Cola Bottling Co. of
Yuba City, Inc., a Pepsi-Cola franchised
bottler serving parts of northern California.
Acquisitions/Mergers/Takeovers
Year: 2010
PepsiCo completed the merger of Pepsi Bottling Group, Inc. and
PepsiAmericas, Inc. its two largest
bottlers in the US for US$7.80 billion. On completion of the
merger PepsiCo created a new bottling
business called Pepsi Beverages Company.
Plans/Strategy
Year: 2010
Frito-Lay planned to make 50% of its products with all natural
ingredients by the end of 2011.
Contracts/Agreements
Year: 2009
PepsiCo entered into a definitive merger agreement with its two
largest bottlers, The Pepsi Bottling
Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS) to acquire all
of the outstanding shares of common
stock.
Contracts/Agreements
Year: 2009
PepsiCo entered into an agreement with Dr Pepper Snapple
Group, Inc. (DPS) to manufacture and
distribute certain DPS products.
Contracts/Agreements
Year: 2009
The company and Calbee Foods Company formed a strategic
alliance to produce and sell a range of food
products in Japan.
Acquisitions/Mergers/Takeovers
Year: 2009
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 29
The company's Pepsi Bottling Ventures, LLC acquired the
assets of Pepsi Cola Bottling Company of
Conway-Myrtle Beach, Inc., the Pepsi-Cola franchise bottler
based in Conway, South Carolina.
Acquisitions/Mergers/Takeovers
Year: 2009
The company agreed to acquire Brazil's largest coconut water
company, Amacoco Nordeste Ltda. and
Amacoco Sudeste Ltda. (Amacoco).
Acquisitions/Mergers/Takeovers
Year: 2009
The company acquired Karinto snack business in Peru.
Acquisitions/Mergers/Takeovers
Year: 2009
PepsiCo and Almarai, joint venture, International Dairy and
Juice Limited (IDJ), acquired Egypt's
international company for agro-industrial projects, Beyti.
Plans/Strategy
Year: 2009
The company established PepsiCo Bottling North America
(PBNA) by combining of its two bottlers, PBG
and PAS.
Contracts/Agreements
Year: 2008
The company entered into an agreement to acquire Bulgaria’s
Leading Nuts and Seeds Company.
Corporate Awards
Year: 2008
The company was awarded 2008 Energy Star Partner of the Year
Award.
Acquisitions/Mergers/Takeovers
Year: 2008
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 30
The company signed an agreement to acquire Russian juice
company, Lebedyansky.
Acquisitions/Mergers/Takeovers
Year: 2008
The company acquired Spitz International, a Canadian-based
manufacturer of sunflower and pumpkin
seeds.
Plans/Strategy
Year: 2008
PepsiCo announced plans to invest USD1 billion in China over
the next four years as part of its strategy
to expand in emerging markets and broaden its portfolio of local
products.
Corporate Awards
Year: 2007
The company was awarded 2007 Working Mother ‘Best
Company for Multicultural Women’.
New Products/Services
Year: 2007
Aquafina introduced Aquafina Alive, a low calorie, vitamin-
enhanced water beverage.
New Products/Services
Year: 2007
Pepsi-Cola North America launched Diet Pepsi MAX.
Acquisitions/Mergers/Takeovers
Year: 2007
PepsiCo and Pepsi Americas, Inc jointly acquired Sandora, a
leading juice company in Ukraine.
Contracts/Agreements
Year: 2006
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 31
The company signed agreements to acquire New Zealand snack
company Bluebird Foods and Naked
Juice Company.
New Products/Services
Year: 2006
Lay's introduced Hot 'n Spicy KC Masterpiece BBQ Potato
Chips.
Acquisitions/Mergers/Takeovers
Year: 2006
The company acquired Stacy's Pita Chip Company.
Acquisitions/Mergers/Takeovers
Year: 2006
Pepsi acquired IZZE beverage company, producer of all-natural
carbonated juice.
Contracts/Agreements
Year: 2005
PepsiCo International established Pioneer Foods, a South
African food and beverage company, as its
franchisee in South Africa.
New Products/Services
Year: 2005
PepsiCo launched Quaker Milk Chillers.
New Products/Services
Year: 2005
The company launched Pepsi Cappuccino in Romania.
New Products/Services
Year: 2004
Frito-Lay introduced Quaker Chewy Cookies & Milk granola
bars and Quaker Fruit & Oatmeal cereal bars.
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 32
New Products/Services
Year: 2004
Frito-Lay launched Doritos and Cheetos Halloween Treat Multi-
Sacks.
Contracts/Agreements
Year: 2003
Pepsi-Cola signed a four-year sponsorship deal with the
Canadian Hockey Association, making Pepsi the
official soft drink.
Corporate Changes/Expansions
Year: 2003
PepsiCo established PepsiCo International, to unite all
international snack, beverage and food units.
Contracts/Agreements
Year: 2002
PepsiCo and Kenneth Cooper, M.D., M.P.H., of Cooper
Concepts Inc. (CCI), a division of the renowned
Cooper Aerobics Center in Dallas, TX entered into an
agreement to promote nutrition, fitness and
wellness.
Acquisitions/Mergers/Takeovers
Year: 2001
PepsiCo acquired Tasali Foods, Saudi Arabia's leading snack
company.
New Products/Services
Year: 2000
Pepsi-Cola launched Sierra Mist, a caffeine-free, lemon-lime
carbonate.
Acquisitions/Mergers/Takeovers
Year: 2000
PepsiCo, Inc. and The Quaker Oats Company entered into an
agreement to merge.
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 33
Acquisitions/Mergers/Takeovers
Year: 2000
PepsiCo, Inc. entered into an agreement to acquire a majority
stake in South Beach Beverage Company,
producer of the SoBe brand..
Contracts/Agreements
Year: 1999
PepsiCo and Suntory Limited signed an agreement to create a
joint venture Pepsi Bottling Ventures,
linking bottling networks in North Carolina and New York.
Acquisitions/Mergers/Takeovers
Year: 1998
Frito-Lay acquired Barcel in Chile.
Acquisitions/Mergers/Takeovers
Year: 1998
PepsiCo acquired Tropicana Products from Seagram Company
Ltd.
Acquisitions/Mergers/Takeovers
Year: 1998
The Frito-Lay Company acquired Smith's Snackfood Company
in Australia from United Biscuits Holdings,
Inc.
Corporate Changes/Expansions
Year: 1997
Pepsi-Cola North American bottling operations became a
separate unit called The Pepsi-Cola Bottling
Co.
New Products/Services
Year: 1997
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 34
The company launched Aquafina bottled water.
New Products/Services
Year: 1997
Frito-Lay introduced Doritos 3D's Tortilla Chips, a triangle-
shaped chip.
Corporate Changes/Expansions
Year: 1996
Pepsi-Cola’s domestic and international operations were
combined into Pepsi-Cola Company.
New Products/Services
Year: 1995
Pepsi-Cola introduced Smooth Moos Smoothies, a line of low-
fat dairy shakes.
Contracts/Agreements
Year: 1994
The company along with Starbucks formed the North American
Coffee Partnership to jointly develop
ready-to-drink coffee beverages.
New Products/Services
Year: 1994
Pepsi-Cola launched its sports drink All Sport.
Acquisitions/Mergers/Takeovers
Year: 1994
Pepsi-Cola International acquired soft drinks company, Duke
and Sons Pvt Ltd in India..
Corporate Changes/Expansions
Year: 1994
The company began production and distribution of its products
in Vietnam.
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 35
New Products/Services
Year: 1993
Frito-Lay launched new Doritos brand Tortilla Thins.
Acquisitions/Mergers/Takeovers
Year: 1993
PepsiCo acquired East Side Mario's Restaurants Inc and
D'Angelo Sandwich Shops chain.
Contracts/Agreements
Year: 1992
Frito-Lay and General Mills entered into an agreement to merge
snack food businesses in Europe.
New Products/Services
Year: 1991
Frito-Lay introduced Sunchips, its first multigrain snack.
Acquisitions/Mergers/Takeovers
Year: 1991
PepsiCo acquired an equity interest in Wedel SA, the leading
manufacturer of chocolate and
confectioner.
Corporate Changes/Expansions
Year: 1991
Pepsi-Cola formed a joint venture with Unilever to develop and
market iced/rtd tea drinks.
Contracts/Agreements
Year: 1990
PepsiCo signed the largest commercial trade agreement in
history with the Soviet Union.
Acquisitions/Mergers/Takeovers
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 36
Year: 1990
PepsiCo acquired a controlling interest in Gamesa, largest
cookie company in Mexico.
Acquisitions/Mergers/Takeovers
Year: 1989
PepsiCo acquired Walkers Crisps and Smith Crisps, UK based
snack food companies.
Acquisitions/Mergers/Takeovers
Year: 1989
PepsiCo acquired Smartfood ready-to-eat popcorn business.
Contracts/Agreements
Year: 1988
Frito-Lay partnered with Hostess Foods in Canada.
Stock Listings/IPO
Year: 1986
PepsiCo was listed on the Tokyo stock exchange.
New Products/Services
Year: 1986
Frito-Lay introduced Santitas brand restaurant style tortilla
chips.
Acquisitions/Mergers/Takeovers
Year: 1986
Pepsi-Cola acquired Mug Root Beer.
Acquisitions/Mergers/Takeovers
Year: 1986
The company acquired Kentucky Fried Chicken, a prominent
company in the quick service chicken
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 37
market.
Acquisitions/Mergers/Takeovers
Year: 1986
PepsiCo acquired 7Up International, the third largest franchise
soft drink operation outside the US.
New Products/Services
Year: 1985
The company added its first line of sweet snacks, Sonrics to its
product line, in Mexico.
New Products/Services
Year: 1984
The company introduced soft drinks with fruit juice such as
Slice and Diet Slice.
New Products/Services
Year: 1982
The company introduced Pepsi Free and Diet Pepsi Free, the
first major brand caffeine-free colas.
Corporate Changes/Expansions
Year: 1981
The company launched PepsiCo Food Systems (PFS), its
restaurant supply company.
New Products/Services
Year: 1981
Frito-Lay introduced Tostitos brand crispy round tortilla chips.
Corporate Changes/Expansions
Year: 1980
The company established PepsiCo Food Service International
(PFSI).
New Products/Services
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 38
Year: 1979
The company introduced twelve-pack cans.
Research and Development
Year: 1979
The company started its PepsiCo Research and Technical Center
in Valhalla, New York.
Acquisitions/Mergers/Takeovers
Year: 1978
The company acquired Taco Bell.
Acquisitions/Mergers/Takeovers
Year: 1977
The company acquired Pizza Hut, Inc.
New Products/Services
Year: 1976
The company introduced Pepsi Light.
Corporate Changes/Expansions
Year: 1973
The company established Foods International, later called
PepsiCo Foods International (PFI) and
subsequently named Frito-Lay International, to market snack
foods around the world.
Contracts/Agreements
Year: 1972
The company was given exclusive rights to import Stolichnaya
Russian vodka in the US.
New Products/Services
Year: 1970
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 39
The company introduced the industry's first two-liter bottle.
Acquisitions/Mergers/Takeovers
Year: 1970
The company acquired Wilson Sporting Goods, a sports
equipment company.
New Products/Services
Year: 1969
Frito-Lay, a sub-division of the company introduced Funyuns
brand onion flavored snacks.
Acquisitions/Mergers/Takeovers
Year: 1968
The company acquired North American Van Lines (NAVL), a
premier transportation company.
Corporate Changes/Expansions
Year: 1966
The company entered Japan and Eastern European market.
New Products/Services
Year: 1966
The company introduced Doritos brand tortilla chips.
Incorporation/Establishment
Year: 1965
PepisCo Inc was established as a result of the merger of Pepsi-
Cola and Frito-Lay.
New Products/Services
Year: 1964
The company formulated Diet Pepsi.
PepsiCo Inc
History
PepsiCo Inc
© MarketLine
Page 40
Others
Year: 1890
Pepsi-Cola was first created by Caleb Bradham, a pharmacist
from New Bern, NY in the late 1890s.
PepsiCo Inc
Key Employees
PepsiCo Inc
© MarketLine
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Key Employees
KEY EMPLOYEES
Name Job Title Board
Hugh F. Johnston Chief Financial Officer, Executive Vice
President, Vice Chairman
Executive Board
Indra K. Nooyi Chairman Executive Board
Mehmood Khan Chief Scientific Officer-Global Research
and Development, Executive Vice
President, Vice Chairman
Executive Board
Alberto Weisser Director Non Executive Board
Cesar Conde Director Non Executive Board
Daniel Vasella Director Non Executive Board
Darren Walker Director Non Executive Board
David C. Page Director Non Executive Board
Dina Dublon Director Non Executive Board
George W. Buckley Director Non Executive Board
Ian M. Cook Director Non Executive Board
Richard W. Fisher Director Non Executive Board
Robert C. Pohlad Director Non Executive Board
Shona L. Brown Director Non Executive Board
William R. Johnson Director Non Executive Board
Albert P. Carey Chief Executive Officer-North America Senior
Management
Eugene Willemsen Executive Vice President-Global
Categories & Franchise Management
Senior Management
Jon Banner Executive Vice President-Communications Senior
Management
Kirk Tanner President-North America Beverages, Chief
Operating Officer- North America
Beverages
Senior Management
Laxman Narasimhan Chief Executive Officer-Latin America and
Europe Sub-Saharan Africa
Senior Management
Marie T. Gallagher Controller, Senior Vice President Senior
Management
Ramon Laguarta Chief Executive Officer Senior Management
Sanjeev Chadha Chairman-Asia, Middle East and North
Africa
Senior Management
Vivek Sankaran President-Frito-Lay North America and
Chief Operating Officer-Frito-Lay North
America
Senior Management
Brian Newman Executive Vice President-Finance and
Operations, Latin America
Senior Management
Jim Andrew Executive Vice President-Corporate Senior
Management
PepsiCo Inc
Key Employees
PepsiCo Inc
© MarketLine
Page 42
Strategy , Chief Venturing Officer
Umran Beba Global Chief Diversity and Engagement
Officer, Senior Vice President-Talent
Management
Senior Management
Jody Davids Chief Information Officer, Senior Vice
President
Senior Management
Ruth Fattori Chief Human Resources Officer, Executive
Vice President-Human Resources
Senior Management
Anne Fink President-Global Foodservice Senior Management
Luis Montoya President- Latin America Beverages Senior
Management
Pedro Padierna Chairman-Mexico Senior Management
Mike Spanos Chief Executive Officer-Asia, Middle East
and North Africa
Senior Management
Grace Puma Whiteford Executive Vice President-Global
Operations
Senior Management
David Yawman Executive Vice President-Government
Affairs, General Counsel, Secretary
Senior Management
Paula Santilli President-PepsiCo Mexico Foods Senior
Management
Ram Krishnan President-Greater China Region Senior
Management
Silviu Popovici President-Europe Sub-Saharan Africa Senior
Management
Simon Lowden President-Global Snacks Group Senior
Management
PepsiCo Inc
Key Employee Biographies
PepsiCo Inc
© MarketLine
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Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
Hugh F. Johnston
Board:Executive Board
Job Title:Chief Financial Officer, Executive Vice President,
Vice Chairman
Since:2015
Age:56
Mr. Hugh F. Johnston has been the Chief Financial Officer,
Executive Vice President and Vice Chairman
of PepsiCo, Inc. since July 2015. Prior to this, he was Chief
Financial Officer and Executive Vice
President of the company from March 2010. He joined the
company in 1987 and has held various senior
management positions, including Chief Financial Officer of
Beverages and Foods; Senior Vice President
of Mergers and Acquisitions; President of Pepsi-Cola North
America Beverages; and Executive Vice
President of Global Operations. He also serves as Director of
AOL, Inc. Previously, he served as Vice-
Chairman and Director of the American Beverage Association
and Director of Pepsi Bottling Group.
Indra K. Nooyi
Board:Executive Board
Job Title:Chairman
Since:2007
Age:62
Ms. Indra K. Nooyi has been the Chairman of the company
since May 2007. Prior to this, she served as
the Chief Executive Officer of the company from 2006 to 2018.
She also served as the Director, President
and Chief Financial Officer from May 2001- September 2006.
Earlier, Ms. Nooyi served as the Senior
Vice President and Chief Financial Officer from February 2000
to April 2001. She also served as
PepsiCo's Senior Vice President, Corporate Strategy and
Development from 1996 to February 2000, and
as the Senior Vice President, Strategic Planning from 1994 to
1996. Prior to this, Ms. Nooyi worked for
four years as the Senior Vice President of Strategy, Planning
and Strategic Marketing for Asea Brown
Boveri, Inc. She also served as the Vice President and a
Director of Corporate Strategy and Planning at
Motorola, Inc during 1986 -1990. Prior to this, she spent six
years at The Boston Consulting Group.
Mehmood Khan
Board:Executive Board
Job Title:Chief Scientific Officer-Global Research and
Development, Executive Vice President, Vice
Chairman
Since:2015
Age:59
Mr. Mehmood Khan has been the Vice Chairman, Executive
Vice President and Chief Scientific Officer of
PepsiCo Inc
Key Employee Biographies
PepsiCo Inc
© MarketLine
Page 44
Global Research and Development of PepsiCo, Inc. since
February 2015. Prior to this, he served as the
Chief Executive Officer of the company’s Global Nutrition
Group from November 2010 to May 2012. He
also served as Chief Scientific Officer of the company from
2008 to May 2012. Prior to joining the
company, Mr. Khan was President, Takeda Global Research &
Development Center. Previously, he was
a faculty member at the Mayo Clinic and Mayo Medical School,
serving as Director of the Diabetes,
Endocrine and Nutritional Trials Unit in the endocrinology
division. He also worked for nine years leading
programs in diabetes, endocrinology, metabolism and nutrition
for the Hennepin County Medical Center in
Minneapolis.
Ramon Laguarta
Board:Senior Management
Job Title:Chief Executive Officer
Since:2018
Age:54
Mr. Ramon Laguarta has been the Chief Executive Officer of
the company since October 2018. Prior to
this, he served as the President of the company. Previously, he
served as the Chief Executive Officer of
Europe Sub-Saharan Africa (ESSA) region of the company from
2015 to 2017. He also served in various
other roles at the company, including Chief Executive Officer
of PepsiCo Europe in 2015, President of
Developing & Emerging Markets, PepsiCo Europe from 2012 to
2015, President of PepsiCo Eastern
Europe Region from 2008 to 2012, and Commercial Vice
President of PepsiCo Europe from 2006 to
2008. He also served as the General Manager for Iberia Snacks
and Juices from 2002 to 2006 and
General Manager for Greece Snacks and Marketing Vice
President for Spain Snacks from 1999 to 2001.
Jody Davids
Board:Senior Management
Job Title:Chief Information Officer, Senior Vice President
Since:2016
Ms. Jody Davids has been the Senior Vice President and Chief
Information Officer of the company since
April 2016. Prior to this, she worked as Chief Information
Officer of Agrium Inc. Ms. Davids has more than
30 years of experience in leading and developing technology
functions for large organizations. Over the
course of her career, she has worked with Best Buy, Cardinal
Health, Nike, and Apple. Currently, she
also serves on the board of Premier Inc.
Ruth Fattori
Board:Senior Management
Job Title:Chief Human Resources Officer, Executive Vice
President-Human Resources
Since:2017
Age:65
Ms. Ruth Fattori has been an Executive Vice President, Human
Resources and Chief Human Resources
Officer of the company since October 2017. Previously, she
served as the Senior Vice President, Talent
PepsiCo Inc
Key Employee Biographies
PepsiCo Inc
© MarketLine
Page 45
Management, Training and Development from February 2013 to
October 2017. Prior to joining the
company, Ms. Fattori was Managing Partner of Pecksland
Partners, LLC from 2009 to February 2013.
She also served as Executive Vice President and Chief
Administrative Officer for MetLife, Inc. from 2008
to 2009. Ms. Fattori served as Executive Vice President of
Human Resources at Motorola, Inc. from 2004
to 2008. Prior to this, she held senior human resources positions
at JPMorgan Chase & Co. and Siemens
Corporation.
PepsiCo Inc
Major Products & Services
PepsiCo Inc
© MarketLine
Page 46
Major Products & Services
MAJOR PRODUCTS & SERVICES
PepsiCo is a global food and beverage products manufacturer
and distributor. The major products and
brands offered by the company include the following:
Products:
Potato Chips
Cheese Flavored Snacks
Branded Dips
Corn Chips
Granola Bars
Multigrain Snacks
Cereals
Rice
Pasta and Other Branded Products
Oatmeal
Mixes and Syrups
Grits
Life Cereal
Rice-A-Roni
Pasta Roni
Beverage Concentrates
Fountain Syrups
Rtd Iced-Tea and Coffee Drinks
Packaged Water
Carbonates
Sports and Energy Drinks
Juice and Nectars
Still Drinks
Brands:
Alegro
Amp Energy
Aquafina
Aquafina Flavorsplash
Aunt Jemima
Cap'n Crunch
Cheetos
Chester's
Chipsy
Chokis
Chudo
PepsiCo Inc
Major Products & Services
PepsiCo Inc
© MarketLine
Page 47
Cracker Jack
Crunchy
Diet Mist Twst
Diet Mountain Dew
Diet Mug
Diet Pepsi
Diet 7UP
Domik v Derevne
Doritos
Duyvis
Elma Chips
Emperador
Frito-Lay
Fritos
Fruktovy Sad
Frustyle, Gamesa
Gatorade
G2
G Series
Grandma's
Izze
Kurkure
Lay's
Life
Lifewtr
Lifewater
Lubimy
Manzanita Sol
Marias Gamesa
Matutano
Mirinda
Miss Vickie's
Mother's
Mountain Dew
Mountain Dew Code Red
Mountain Dew Kickstart
Mug
Munchies
Naked
Near East
O.N.E.
Paso de los Toros
Pasta Roni
Pepsi
Pepsi Max
Pepsi Next
PepsiCo Inc
Major Products & Services
PepsiCo Inc
© MarketLine
Page 48
Pepsi Zero Sugar
Pepsi One
Propel
Quaker
Quaker Chewy
Quakes
Red Rock Deli
Rice-A-Roni
Rold Gold
Rosquinhas
Mabe
Ruffles
Sabritas
Saladitas
Sakata
Sandora
7-Up and Diet 7-Up (outside the US)
7UP Free
Santitas
Sierra Mist
Simba
Smartfood
Smith's
Snack a Jacks
SoBe
SoBe Lifewater
Sonric's
Stacy's
SunChips
Toddy
Toddynho
Tostitos
Trop 50
Tropicana
Tropicana Pure Premium
Tropicana Twister
V Water
Vesely Molochnik
Walkers
Ya
PepsiCo Inc
SWOT Analysis
PepsiCo Inc
© MarketLine
Page 49
SWOT Analysis
SWOT ANALYSIS
PepsiCo Inc (PepsiCo) is a food and beverage company. Strong
market position, focused R&D activities,
reinvestment to generate strong financial results, and strong
customer base are the company’s major
strengths, even as, product recalls and allegations remain areas
of concern. In the future, competitive
pressures, volatile raw material prices, and obesity and water
concerns could affect its business
operations. However, growing global growth in soft drinks
consumption, global savory snacks market,
focus on refranchising internationally, and tax reform in the US
are likely to provide growth opportunities
to the company.
Strength
Market Position
R&D Activities
Reinvestment to Generate Strong Financial Results
Connecting with Consumers
Weakness
Lawsuits
Product Recalls
Opportunity
Global Soft Drinks Consumption
Focus on Refranchising
Global Savory Snacks Market
Tax Reform in the US
Threat
Obesity and Water Concerns
Competitive Pressures
Volatile Raw Material Prices
Strength
Market Position
The company enjoys a prominent market position that helps in
attracting and serving a diverse customer
base. PepsiCo is the second-largest food and beverage company
in the world. It manufactures, markets
and sells a range of convenient, enjoyable and wholesome foods
and beverages. Its portfolio comprises
oat, rice snacks and grain-based foods, carbonated and non-
carbonated beverages. The company’s
products are sold in more than 200 countries. PepsiCo has 25
brands generating retail sales of over
US$1 billion annually. As of December 2017, the company held
over 20% market share in the total US
liquid refreshment beverage category. PepsiCo was the largest
driver of growth for its food and beverage
retail partners in the US in FY2017, contributing 19% of total
food and beverage retail sales growth, which
is more than the next 15 largest F&B manufacturers combined.
R&D Activities
Strong R&D activities improve the company’s competitiveness
in the marketplace and also enhance its
portfolio of offerings. PepsiCo is involved in several R&D
activities to offer innovative products to its
customers. Its activities comprise development of new
ingredients and products; improvement and
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modernization of manufacturing processes; reformulation and
improvement in the quality and appeal of
existing products; and improvements in product quality. It
operates research centers in Brazil, China,
India, Germany, Russia, Mexico, the U AE, the UK and the US.
In FY2017, the company invested
US$737 million on its R&D activities. The company introduced
several products in beverage, food and
snack portfolio during the review year. In FY2017, PepsiCo
focused on refining beverage, food and snack
portfolio to meet changing consumer demands by reducing
added sugars in beverages and sodium and
saturated fat in foods and snacks; developed a wide portfolio of
product choices, including beverage
options that contain no high-fructose corn syrup and that are
made with natural flavors; expanded food
and beverage healthy vending initiative to increase the
availability of convenient, affordable and enjoyable
nutrition, and further expanded portfolio of nutritious products.
Reinvestment to Generate Strong Financial Results
PepsiCo’s focus on refining its business model on reducing
management layers and implementing
technologies resulted in higher manufacturing throughput,
reduction in logistics costs and increasing go-
to-market efficiency and effectiveness. It resulted in annual
productivity savings of US$1 billion equivalent
to 10% of annual EBIT or 1.6% of total sales. It also helped in
better utilizing the company’s resources
and making investments to record financial growth. PepsiCo
recorded total revenue of US$63,525 million
in FY2017, a growth of 1.2% over the previous year. It
delivered organic revenue growth of 2.3% in
FY2017 compared to FY2016. During the review year, its core
operating margin improved by 45 basis
points. Its core constant currency earnings per share (EPS)
improved by 9%, exceeding the 8% goal set
at the beginning of FY2017. The company generated free cash
flow of US$7.3 billion in FY2017, which
exceeded the goal of US$7 billion set at the beginning of the
review period. The core net return on
invested capital (ROIC) improved by 140 basis points and stood
at 22.9% at the end of FY2017. The
company also achieved its target of returning US$6.5 billion in
cash to shareholders in the form of
dividends and share repurchases. Over the past five years,
organic revenue grew at a CAGR of 4%, the
core operating margin improved by 220 basis points, and
constant currency annual EPS growth averaged
9%. Its operating margin stood at 16.5% in the review year and
outperformed the beverages industry's
operating margin average of 10% for the same year. The core
net ROIC increased by over 750 basis
points, whereas annualized dividend per share increased by 50%
during the same period. Through
dividends and share repurchases, the company returned US$38
billion to shareholders over the past five
years.
Connecting with Consumers
PepsiCo’s products are used by consumers over one billion
times a day in more than 200 countries. The
company’s focus on managing customer relationships in retail
and foodservice enabled it to create
competitive advantage in the marketplace. Focus on
strengthening its capabilities in (R&D, e-commerce,
social and digital marketing helped it to connect with
consumers. PepsiCo partners with retail customers
through its e-commerce business to create a point of
differentiation. In FY2017, its e-commerce business
generated annual retail sales of US$1 billion. The company’s
better control of its distribution systems help
to develop an aligned system on snacks and beverages that
serves the retailers well and reach higher
number of consumers. The company leverages big data and
predictive analytics to betters understand
consumers’ requirements and design its campaign to deliver
real-time marketing messages and tailored
offers. The strength of its customer relationships enabled it to
secure higher ranks in recent Kantar Retail
PoweRanking survey, in which, the company’s retail partners
named PepsiCo as the best-in-class
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manufacturer. It also received the top ranking in several
functional categories, including clear company
strategy, most important consumer brands, growth and
profitability, sales force and customer teams,
insights and category management, supply chain management
and use of digital platforms. Similarly,
PepsiCo was highly ranked in service by advantage in markets
outside the US, including major markets
comprising China, Russia, the UK and Mexico.
Weakness
Lawsuits
The company was involved in various law suits, affecting its
brand image and cost structure. In October
2016, PepsiCo was sued in the federal court of New York by the
Center for Science in the Public Interest
(CSPI) on behalf of three shoppers over misleading
advertisements. In the suit, the company was
accused of providing wrong and fabricated information on the
labels of Naked juices and smoothies. CSPI
alleged that PepsiCo misleadingly markets Naked juices as
predominantly containing high-value
ingredients, but originally the main ingredient is often cheaper,
less nutritious apple or orange juice. CSPI
also claimed that PepsiCo embellishes No Sugar Added tag on
Naked labels, whereas these products
contain roughly as much sugar as in the company’s other
carbonated soft drinks. Though PepsiCo denied
these allegations but later (Feb 2017) it agreed to update the
labels for its Naked Juice brand within eight
months. In June 2016, PepsiCo reached a settlement in
carcinogen class action lawsuit, where the
company was accused of selling products containing chemical
4-Methylimidazole (4-MeI) that violates
consumer protection law and common law in California.
Product Recalls
Frequent product recalls could increase the company’s
operational costs. In July 2017, PepsiCo recalled
two pack sizes of Doritos Chilli Heatwave over presence of milk
that was not mentioned on the label that
could potentially cause health risk for customers with an allergy
or intolerance to milk or milk constituents.
In January 2017, PepsiCo and the Food Standards Agency
recalled few batches of Doritos lightly salted
corn chips over presence of soya and wheat (gluten) that were
not mentioned on the label. The recalled
product could cause a possible health risk for individuals with
an allergy or intolerance to wheat or gluten,
and/or an allergy to soya. Though the product recalls portray the
company’s focus towards safety,
frequent recalls could have a negative impact on company’s
reputation in the market.
Opportunity
Global Soft Drinks Consumption
The company stands to benefit from the growing global demand
for soft drinks. According to in-house
research report, the global consumption of soft drinks in terms
of value stood at US$841,600.2 million in
2016 and is expected to grow at a CAGR of 5.8% during 2016-
21 to reach US$1,113,926.6 million by
2021. Major factors driving the growth include growing global
middle class population, increasing
disposable income, rapid urbanization, improving buying power
of customers’ worldwide, introduction of
new flavors and changing customer needs. Usage of natural
colors and sweeteners such as corn syrup,
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aspartame and similar ingredients, apart from improvement of
quality in manufacturing process of
beverages also contribute to the growth of the industry by
attracting health conscious people. Carbonates
and packaged water are the largest segments of the global soft
drinks market, accounting for 33.1% and
20.6% of the market's total value, respectively. Asia-Pacific
accounts for about 32.9% of the total global
soft drinks market value, followed by the US (28.9%), Europe
(22.5%), the Middle East (1.7%) and the
rest of the world (14.1%).
PepsiCo stands to benefit from the growth as it markets
products in more than 200 countries worldwide.
The company took several initiatives to strengthen its beverages
market. In February 2018, PepsiCo
launched a new sparkling water, bubly, that combines refreshing
and delicious flavors. In January 2018,
the company's Mountain Dew introduced MTN DEW ICE, a
crisp, clear, carbonated soft drink made with
a splash of real juice.
Focus on Refranchising
PepsiCo repurposed its refranchising strategy, which focuses on
extracting the productivity, driving the
top line growth and also to check whether innovation sticks in
the marketplace. In August 2017, Varun
Beverages Ltd acquired PepsiCo India’s previously franchised
territories in Odisha and parts of Madhya
Pradesh along with three manufacturing units. PepsiCo signed
an agreement with Varun Beverages to
distribute its Tropicana juices, Gatorade sports drink and
Quaker oats. During the review year, the
company refranchised its beverage business in Jordan by selling
a controlling interest in its bottling
operations. PepsiCo recorded a pre-tax gain of US$140 million
in selling, general and administrative
expenses in AMENA segment. During the review year, the
company entered into an agreement to
refranchise its beverage business in Thailand by selling a
controlling interest in its bottling operations.
The transaction is expected to be completed in 2018. In
FY2017, the company entered into an agreement
to refranchise its entire beverage bottling operations and snack
distribution operations in Czech Republic,
Hungary, and Slovakia (CHS). The transaction is expected to be
completed in 2018.
Global Savory Snacks Market
The growth in the global savory snacks market is likely to
increase the company’s business in the future.
Increasing population, higher per capita consumption,
urbanization, growing middle class, improving
technological standards, and increasing number of snacking
occasions drive the savory snacks market
worldwide. According to in-house research report, the global
savory snacks market was valued at
US$96,425.9 million in 2016, where processed snacks
accounted for 36.4% of the total market value,
followed by potato chips (25.8%), nuts and seeds (15.3%),
ethnic or traditional snacks (11.6%), popcorn
(4.9%), meat snacks (3.1%) and others (2.9%). The market is
projected to grow at a CAGR of 6% during
2016-21 to reach US$129,158.5 million by the end of 2021. In
terms of volume, the market is expected to
grow at a CAGR of 3.2% during the period to reach 11,929.5
million kg by 2021. Increasing population in
Asia-Pacific, coupled with a healthy economic outlook, presents
a significant opportunity for the growth of
the savory snacks market.
PepsiCo's snacks business is handled by Frito-Lay North
America (FLNA) division, which is one of the
largest contributors in its total revenue. FLNA contributed
24.9% of the total sales and 41% of EBIT in
FY2017. Its total revenue increased by 1.6% in FY2017 over the
previous year. It achieved an organic
revenue growth of 3% during the review year, which could be
attributed to higher growth in variety packs,
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Ruffles, Tostitos, Doritos and dips. FLNA has taken several
initiatives to strengthen its portfolio and
maintain its growth momentum. In January 2018, it introduced
Doritos Blaze, a hot and spicy snack. In
FY2017, FLNA launched Doritos Crunch Nuts and Doritos
Crunch Mix Poppables, a light-textured potato
snack in various flavors, including white cheddar and sea salt.
Tax Reform in the US
Impact of tax reform in the US is expected to give a fresh boost
to the company’s business. The tax
reform law is likely to allow business entities in the country for
more flexibility in terms of managing
resources, and particularly cash resources around the world and
lower the cost of capital in the US. This
new scenario could attract more investments on business in the
country in coming years. In December
2017, the Government of the US passed The Tax Cuts and Jobs
Act (Tax Reform Act). The new law
slashed the corporate tax to a flat rate of 21%, a drastic fall
from its previous maximum corporate tax rate
of 35%. Furthermore, the new law eliminates the special
corporate tax rate on personal service
corporations (PSCs). It also lowers the 80% dividends received
deduction (for dividends from 20% owned
corporations) to 65% and the 70% dividends received deduction
(for dividends from less than 20% owned
corporations) to 50%. The new rate is effective from January
2018. The new law also repeals the
alternative corporate tax on net capital gain. According to the
Joint Committee on Taxation’s (JCT’s)
estimates, the new law reflects a net tax cut of approximately
US$1.456 trillion over the ten-year budget
window. The reform is likely to enhance profitability of
companies such as PepsiCo, which expects 9%
increase in its core earnings per share in 2018 compared to 2017
due to the lower tax rate.
Threat
Obesity and Water Concerns
Health consequences resulting from obesity, and water scarcity
are primary areas of concern for
beverage companies. Researchers, health advocates and dietary
guidelines have advocated a reduction
in consumption of sweetened beverages in order to avoid
obesity. Various governments plan to increase
taxes on sugar-sweetened beverages to reduce consumption of
such beverages and increase revenue.
For instance, the Sugar-Sweetened Beverages Tax (SWEET)
Act, institutes a tax of one cent per
teaspoon of caloric sweetener such as sugar or high-fructose
corn syrup. Increased consumer awareness
towards obesity and probable new or increased taxes on sugar-
sweetened beverages by governments
could reduce the company’s product sales. To overcome from
the above concerns, in March 2017, the
company introduced Pepsi Max Ginger, a new sugar-free
addition to the Max line-up. In the same month,
PepsiCo introduced low-calorie Lemon Lemon and IZZE
Fusions. Moreover, increased water scarcity and
availability of quality water is deteriorating day by day. Water
being a major ingredient for beverage
manufacturers, increasing demand could result in higher
production costs in coming years.
Competitive Pressures
PepsiCo and Coca-Cola are the two big soft drink giants that
battle fiercely over the consumer attention
and attachment. As they are present across most categories, the
two adversaries have been very active
in marketing. PepsiCo and The Coca-Cola Company represent
over 40% of the US liquid refreshment
beverage category. Apart from Coca-Cola, PepsiCo also
competes with international beverage, food and
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snack companies operating in multiple geographies such as
Nestle S.A., Kellogg Company, DPSG,
International, Inc., Kraft Foods Group, Inc., Monster Beverage
Corporation, Red Bull GmbH, and
Snyder’s-Lance, Inc.
Volatile Raw Material Prices
The company’s performance is sensitive to raw material price
movements. According to the Food and
Agriculture Organization of the United Nations’ (FAO), Food
Price Index averaged 174.6 points in 2017 as
compared to 161.5 points in 2016, up 8.2%. Its Cereal Price
Index averaged 151.6 points in 2017 as
compared to 146.9 points in 2016, up 3.2%. Similarly, Dairy
Price Index averaged 202.2 points in 2017 in
comparison with 153.8 points in 2016, up 31.5%. The
continuous supply of raw materials could be
affected by adverse weather conditions, national emergencies,
strikes, governmental controls, natural
disasters, supply shortages or any other unexpected events.
PepsiCo uses various agriculture related
products in the production of carbonated and non-carbonated
beverages. It also uses aspartame, cocoa,
corn, corn sweeteners, flavorings, flour, grapefruits and other
fruits, juice and juice concentrates oats,
oranges, potatoes, rice, seasonings, sucralose, sugar, vegetable
and essential oils, and wheat.
Fluctuations in the prices of raw materials could increase
product costs and affect the operations of the
company.
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Top Competitors
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Top Competitors
TOP COMPETITORS
The following companies are the major competitors of PepsiCo
Inc
Danone SA
Dr Pepper Snapple Group Inc
Kellogg Co
Mondelez International Inc
Monster Beverage Corporation
Nestle SA
Red Bull GmbH
Snyder’s-Lance, Inc.
Suntory Holdings Ltd
The Coca-Cola Co
The Kraft Heinz Co
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Company View
COMPANY VIEW
A statement from Management’s Discussion and Analysis of
Financial Condition and Results of
Operations of PepsiCo Inc is given below. The statement has
taken from the company’s 2017 10-K
report.
Executive Overview
We are a leading global food and beverage company with a
complementary portfolio of enjoyable brands,
including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and
Tropicana. Through our operations, authorized
bottlers, contract manufacturers and other third parties, we
make, market, distribute and sell a wide
variety of convenient and enjoyable beverages, foods and
snacks, serving customers and consumers in
more than 200 countries and territories.
At PepsiCo, we are focused on operating our company in a way
that generates sustained financial growth
and consistently strong returns and is also responsive to the
needs of the world around us. We call this
approach Performance with Purpose — it is embedded into our
business and our strategy — and it
enabled us to deliver another year of strong performance in
2017.
As we look to 2018 and beyond, we believe our Performance
with Purpose strategy will enable us to
continue delivering strong performance while positioning our
Company for long-term sustainable growth.
Our strategies are designed to address key challenges facing our
Company, including: macroeconomic
and political volatility and the continued rebalancing of the
economic world; shifting consumer preferences
and increasing demand for more nutritious foods and beverages;
the disruption of retail; the expansion of
hard discounters; and the emergence of niche brands laying
claim to large consumer segments,
particularly in developed markets. We intend to focus on the
following areas to address and adapt to
these challenges:
•Utilizing the strength of our distribution system to offer
consumers a wide array of choices, from “fun-for-
you” to “better-for-you” to “good-for-you” products to meet
consumers’ demand for more nutritious foods
and beverages;
•Continuing to strengthen our retail and foodservice
relationships to sell our products faster, increase
cash flow and engage consumers;
•Minimizing our environmental footprint to streamline costs and
mitigate our operational impact on the
communities in which we operate;
•Continuing to invest in our associates so that we have the best
talent to position our company for
continued growth; and
•Continuing our investments in e-commerce and digital
solutions to meet changing consumer
consumption patterns and capture cost savings while
streamlining our operations.
Results of Operations — Consolidated Review
In the discussions of net revenue and operating profit below,
“effective net pricing” reflects the year-over-
year impact of discrete pricing actions, sales incentive activities
and mix resulting from selling varying
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products in different package sizes and in different countries
and “net pricing” reflects the year-over-year
combined impact of list price changes, weight changes per
package, discounts and allowances.
Additionally, “acquisitions and divestitures,” except as
otherwise noted, reflect all mergers and
acquisitions activity, including the impact of acquisitions,
divestitures and changes in ownership or control
in consolidated subsidiaries and nonconsolidated equity
investees. The impact of the structural change
related to the deconsolidation of our Venezuelan businesses is
presented separately.
Volume
Our beverage volume in the NAB, Latin America, ESSA and
AMENA segments reflects sales to
authorized bottlers, independent distributors and retailers, as
well as the sale of beverages bearing
Company-owned or licensed trademarks that have been sold
through our authorized independent
bottlers. Bottler case sales (BCS) and concentrate shipments and
equivalents (CSE) are not necessarily
equal during any given period due to seasonality, timing of
product launches, product mix, bottler
inventory practices and other factors. While our beverage
revenues are not entirely based on BCS
volume, as there are independent bottlers in the supply chain,
we believe that BCS is a valuable measure
as it quantifies the sell-through of our beverage products at the
consumer level. Sales of products from
our unconsolidated joint ventures are reflected in our reported
volume. NAB, Latin America, ESSA and
AMENA, either independently or in conjunction with third
parties, make, market, distribute and sell ready-
to-drink tea products through a joint venture with Unilever
(under the Lipton brand name), and NAB
further, either independently or in conjunction with third
parties, makes, markets, distributes and sells
ready-to-drink coffee products through a joint venture with
Starbucks. In addition, AMENA licenses the
Tropicana brand for use in China on co-branded juice products
in connection with a strategic alliance with
Tingyi.
Our food and snacks volume in the FLNA, QFNA, Latin
America, ESSA and AMENA segments is
reported on a system-wide basis, which includes our own sales
and the sales by our noncontrolled
affiliates of snacks bearing Company-owned or licensed
trademarks.
Servings
Since our divisions each use different measures of physical unit
volume (i.e., kilos, gallons, pounds and
case sales), a common servings metric is necessary to reflect
our consolidated physical unit volume. Our
divisions’ physical volume measures are converted into servings
based on U.S. Food and Drug
Administration guidelines for single-serving sizes of our
products.
In 2017, total servings decreased 1% compared to 2016. In
2016, total servings increased 3% compared
to 2015. Excluding the impact of the 53rd reporting week in
2016, total servings in 2017 was even with
the prior year and total servings in 2016 increased 2% compared
to 2015. Servings growth reflects
adjustments to the prior year results for divestitures and other
structural changes, including the
deconsolidation of our Venezuelan businesses effective as of
the end of the third quarter of 2015.
2017
Operating profit increased 7% and operating margin improved
1.0 percentage points. Operating profit
growth was driven by the benefit of actions associated with our
productivity initiatives, which contributed
more than $1 billion in cost reductions across a number of
expense categories, as well as effective net
pricing. Items affecting comparability (see “Items Affecting
Comparability”) also contributed 4 percentage
points to operating profit growth and increased operating profit
margin by 0.5 percentage points, primarily
reflecting a prior-year impairment charge to reduce the value of
our 5% indirect equity interest in TAB to
its estimated fair value. Additionally, the impact of
refranchising our beverage business in Jordan and a
gain associated with the sale of our minority stake in Britvic
each contributed 1 percentage point to
operating profit growth. These impact------
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PepsiCo Inc
Locations And Subsidiaries
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Locations And Subsidiaries
LOCATIONS AND SUBSIDIARIES
Head Office
PepsiCo Inc
700 Anderson Hill Road
Purchase
New York
Purchase
New York
USA
Phone:1 914 2532000
Fax:1 914 2532070
www.pepsico.com
Other Locations and Subsidiaries
Alimentos Quaker Oats y Compania Limitada
Calzada San Juan
GTM
Alimesa S.A.
Loza Napoleon
La Rioja
La Rioja
ARG
Anderson Hill Insurance Limited
19 Reid Street
Hamilton
Hamilton
BMU
Aquafina Inversiones, S.L.
ESP
Aradhana Drinks and Beverages Private Limited
Panchkula
Chandigarh
Panchkula
Chandigarh
IND
BAESA Capital Corporation Ltd.
CYM
Beech Limited
CYM
Bishkeksut, OJSC
KGZ
Bolsherechensk Molkombinat, JSC
RUS
Boquitas Fiestas S.R.L.
HND
Canguro Rojo Inversiones, S.L.
ESP
China Concentrate Holdings (Hong Kong) Limited
HKG
Chipsy International For Food Industries Co.S.A.E
EGY
Cipa Nordeste Industrial de Produtos Alimentares
Ltda.
BRA
Compania De Bebidas Pepsico, S.L. Frito-Lay North America,
Inc.
PepsiCo Inc
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Av Los Olmos, 2
Zona Ind. Gamarra
Vitoria-Gasteiz
Alava
Vitoria-Gasteiz
Alava
ESP
Phone:34 91 3829300
Fax:34 91 3829310
www.pepsi.es/www.pepsico.es
7701 Legacy Drive
Plano
Texas
Plano
Texas
USA
Phone:1 800 3524477
www.fritolay.com
Grupo Gepp, SAPI de CV
4th floor
Avenue Santa Fe No. 485
Col. Cruz Manca
Santa Fe
Mexico
Santa Fe
Mexico
MEX
Phone:52 55 52494700
gepp.com.mx
Health Warrior, Inc.
4820 Old Main Street
Unit 102
Richmond
Virginia
Richmond
Virginia
USA
Lebedyansky, LLC
9 Zemlyanoy Val str.
business center “Citydel”
Moscow
Moscow
RUS
Phone:7 495 933 62 50
Naked Juice Co. of Glendora, Inc.
935 W. 8Th St.
Azusa
California
Azusa
California
USA
Phone:1 626 812
Fax:1 626 334
www.nakedjuice.com
Pepsi Bottling Holdings, Inc.
Delaware
Delaware
USA
Pepsi Cola Trading Ireland
30 Herbert Street
Dublin
Dublin
IRL
Pepsi Croatia
1 Dimitrie Cantemir Blvd
Bucharest
Bucharest
ROM
Phone:40 21 3172800
Fax:40 21 3172802
Pepsi Hungary
Helsinki ut 121-123,
Budapest
Budapest
HUN
Phone:36 1 4671515
Fax:36 1 1636464
www.pepsi.hu
PepsiCo Alimentos de Ecuador PepsiCo Americas Beverages
PepsiCo Inc
Locations And Subsidiaries
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Av. Juan de Selis y Tadeo Bénitez Esq
Quito
Quito
ECU
Phone:593 421 11278
ec.pepsimundo.com
700 Anderson Hill Road,
Purchase
New York
Purchase
New York
USA
Phone:1 914 2532000
Fax:1 914 2532229
www.pepsico.com
PepsiCo Australia Holdings Pty Ltd.
799 Pacific Hwy
Chatswood
New South Wales
Chatswood
New South Wales
AUS
Phone:61 29 9511799
www.pepsico.com.au
PepsiCo BeLux BVBA
Da Vincilaan 3
Zaventem
Brabant Flamand
Zaventem
Brabant Flamand
BEL
Phone:32 27 140540
Fax:32 27 140541
www.pepsico.be
PepsiCo Beverages International Limited
C/o 7-Up Bottling Company
247 Moshood Abiola Way
Ijora
Lagos
Lagos
NGA
Phone:234 1 5871686
Fax:234 1 5877146
www.pepsico.com
Pepsico Beverages Italia S.R.L.
Via Tiziano, 32
Milano
Lombardia
Milano
Lombardia
ITA
Phone:39 2 434381
Fax:39 2 43438200
www.pepsi.it
PepsiCo Beverages Switzerland GmbH
Genfergasse 4,
Bern
Bern
CHE
Phone:41 33 47000
Fax:41 33 47001
www.pepsi.ch
PepsiCo Bosnia and Herzegovina
1 Dimitrie Cantemir Blvd, Bucharest 4,
Bucharest
Bucharest
ROM
Phone:40 213 172800
Fax:40 213 172802
PepsiCo Bulgaria
Pepsi-Cola GmbH
Linke Wienzeile
Vienna
Vienna
Vienna
Vienna
AUT
PepsiCo Chile
Avenida Kennedy 5454
Floor 4
Las Condes
Santiago
Santiago
Santiago
Santiago
PepsiCo Inc
Locations And Subsidiaries
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Phone:43 189 49120
Fax:43 189 41980
www.pepsi.com
CHL
www.pepsico.cl
PepsiCo CZ s.r.o.
Kolbenova 50/510
Praha 9 - Vysocany
Prague
Vysocina
Prague
Vysocina
CZE
Phone:420 266 191200
Fax:420 266 191258
www.pepsico.cz
PepsiCo de Argentina S.R.L.
12 de Octubre y Gran Cañarias
Buenos Aires
Buenos Aires
ARG
Phone:54 6778 2200
Fax:54 6778 2234
PepsiCo Deutschland GmbH
Hugenottenallee 173
Neu-Isenburg
Neu-Isenburg
DEU
Phone:49 61 027490
Fax:49 61 02749200
www.pepsico.de
PepsiCo do Brasil Ltda.
Street Renato Paes de Barros
1017 - 7th floor
Moema Sao Paulo - SP - CEP 04530-001
Sao Paulo
Sao Paulo
Sao Paulo
Sao Paulo
BRA
Phone:55 11 38485000
www.pepsico.com.br
PepsiCo Europe
63 Kew Road
Richmond
Surrey
Richmond
Surrey
GBR
Phone:44 208 3324000
Fax:44 208 3324042
www.pepsico.eu
PepsiCo Europe, Czech Republic
Kolbenova 50/510
Vysocany
Prague
Prague
CZE
Phone:420 2 66191200
Fax:420 2 66191258
PepsiCo France SNC
420, rue d'Estienne d'Orves
Colombes Cedex
Paris
Ile-de-France
Paris
Ile-de-France
FRA
Phone:33 1 55699000
Pepsico Holdings
Building 1, Territory of the Free Economic Zone,
Sherrizon
Solnechnogorsk
Moscow
Moscow
Moscow
Moscow
RUS
PepsiCo Inc
Locations And Subsidiaries
PepsiCo Inc
© MarketLine
Page 63
www.pepsico.fr Phone:7 495 9370550
www.pepsico.ru
PepsiCo Inc
1 Pepsi Way
Somers
New York
Somers
New York
USA
Phone:1 914 7676000
www.PepsiCoBeverageFacts.com
PepsiCo Inc
Emaar Square, Sheikh Zayed Rd.
Emaar Bldg #2, Level 3
PO Box 11330
Dubai
Dubai
ARE
Phone:971 4 4253700
PepsiCo Inc
P.O. Box 049003
Chicago
Illinois
Chicago
Illinois
USA
Phone:1 800 3676287
www.quakeroats.com
PepsiCo Inc
P.O. Box 660634
Dallas
Texas
Dallas
Texas
USA
Phone:1 800 3524477
www.fritolay.com
PepsiCo Inc
Rue du Rhône 50
Geneva
Geneva
CHE
Phone:41 914 2532000
www.pepsico.eu
Pepsico Inc Sucursal De Peru SA
Cal. Esquilache Nro. 371 int. 15
Esquil Empresarial Business Center
San Isidro
Lima
Lima
Lima
Lima
PER
Phone:51 1 7117111
www.pepsico.com
PepsiCo India Holdings Pvt Ltd
Level 3-6
Pioneer Square, Sector 62, Near Golf Course
Extension Road
Gurgaon
Haryana
Gurgaon
Haryana
IND
Phone:91 124 2880699
www.pepsicoindia.co.in
PepsiCo Internacional Mexico S. de R.L. de C. V.
MEX
PepsiCo International
700 Anderson Hill Road
Purchase
PepsiCo International Pte Ltd.
99 Bukit Timah Road
Central Orchard
PepsiCo Inc
Locations And Subsidiaries
PepsiCo Inc
© MarketLine
Page 64
New York
Purchase
New York
USA
Phone:1 914 2532552
www.pepsico.com
Singapore City
Singapore City
SGP
Phone:65 63 386496
Fax:65 63 386596
PepsiCo Investment (China) Ltd.
1106/1107, 11th Floor
SK Tower (Capital Tower)
No.6 JIA Jianguomenwai Avenue
Beijing
Beijing
Beijing
Beijing
CHN
Phone:86 10 65630086
Fax:86 10 65630215
www.pepsico.com.cn
PepsiCo Malaysia Sdn Bhd
15th Floor, West Wing Wisma Consplant 2
2, 7 Jalan SS16/1
Selangor, Darul Ehsan
Subang Jaya
Subang Jaya
MYS
Phone:60 3 56378000
Fax:60 3 56368000
www.pepsimalaysia.com
PepsiCo Nederland B.V.
Zonnebaan 35
Utrecht
Utrecht
NLD
Phone:31 30 2473811/811 030-2473
Fax:31 30 2473650/650 030-2473
www.pepsico.nl
PepsiCo Nordic Denmark A/S
Vesterbrogade 149, 1, DK-1620
Kobenhavn
Kobenhavn
DNK
Phone:45 7070 2888
Fax:45 3262 3041
www.pepsi.dk
PepsiCo Nordic Finland Oy
Atomitie 2a
Helsinki
Helsinki
ALA
Phone:358 9 682450
Fax:358 9 68244552
www.pepsi.fi
PepsiCo Nordic Norway AS
Lilleakerveien 4
Oslo
Oslo
Oslo
Oslo
NOR
Phone:47 22 132500
Fax:47 22 132501
www.pepsi.no
PepsiCo Philippines
National Road Km29, Tunasan
Muntinlupa
Manila
Muntinlupa
Manila
PHL
Phone:63 8507901
www.pepsiphilippines.com
PepsiCo Republic of Ireland
Little Island Industrial Estate, Little Island
Cork
Cork
Cork
Cork
IRL
Phone:353 1 214523100
Fax:353 1 4353926
PepsiCo Inc
Locations And Subsidiaries
PepsiCo Inc
© MarketLine
Page 65
www.pepsico.ie
PepsiCo Romania
Sun Offices
391 Calea Vacaresti, 4th Floor
Section 1, Sector 4
Bucharest
Bucharest
ROM
Phone:40 372 377100
Fax:40 213 373272
www.pepsico.ro
PepsiCo Sweden
Lilleakerveien 4
Oslo
Oslo
NOR
Phone:47 2 2132500
Fax:47 2 2132501
www.pepsi.com/sv-se/d
PepsiCo Turkey
Tekfen Tower
Eski Buyukdere Caddesi No 209 Block D: 3
4 Levent
Istanbul
Istanbul-I (Thrace)
Istanbul
Istanbul-I (Thrace)
TUR
Phone:90 212 3193000
Fax:90 212 3570180
www.pepsi.com.tr
PepsiCo Ukraine
Promyslova St, 7
Vyshneve
Kiev
Kiev
Kiev
Kiev
UKR
Phone:380 44 4905260
pepsico.ua
PepsiCo-IVI S.A.
19th km Athinon
Lamias Ave
Nea Erythraia
Nea Erythraia
GRC
Phone:30 210 6699000
Fax:30 210 6646058
www.pepsico-ivi.gr
Pepsi-Cola (Thai) Trading Co., Ltd.
Emporium Tower 16Th and 17Th Floor
622 Sukhumvit Road
Khlong Ton
Bangkok
Bangkok (Krung Thep Maha Nakhon)
Bangkok
Bangkok (Krung Thep Maha Nakhon)
THA
Phone:66 2 6894600
Fax:66 2 6647265
www.pepsico.co.th
Pepsi-Cola Far East Trade Development Co., Inc.
Pcppi Compound Km 29 National Road Tunasan
Muntinlupa
Laguna
Muntinlupa
Laguna
PHL
Phone:63 49 8451842
Pepsi-Cola General Bottlers Poland SP zoo
ul. Zamoyskiego 24-26
Warsaw
Greater Poland
Warsaw
Greater Poland
POL
Phone:48 22 6707070
Fax:48 22 6707261
www.pepsicopoland.com
PepsiCo Inc
Locations And Subsidiaries
PepsiCo Inc
© MarketLine
Page 66
Pepsi-Cola International Deutschland
Hugenottenallee 173
Neu-Isenburg
Hessen
Neu-Isenburg
Hessen
DEU
Phone:49 610 27490
Fax:49 610 2749200
www.pepsi.at
Pepsi-Cola International Kazakhstan
Manas str, 32,
SAT business center,
Almaty
Almaty
KAZ
Phone:7 727 2324542
www.pepsi.kz
Pepsi-Cola International Serbia
17-19, Felix Street, Bucharest 1
Bucharest
Bucharest
ROM
Phone:40 21 3172800
Fax:40 21 3172802
Pepsi-Cola Panamericana SA-Colombia
Avenida de las Americas 53-09
Bogota
Bogota
COL
Phone:57 1405 3002
Fax:57 1405 6375
Pepsi-Cola Panamericana, S.A.
Av. 4, Edificio Ctro Empresarial Polar
Urbanización Los Cortijos de Lourdes
Caracas
Distrito Capital
Caracas
Distrito Capital
VEN
Phone:58 2 2036411
www.empresaspolar.com
Pepsi-Cola Portugal LDA
Lagoas Park
Edificio 5C, 5
Porto Salvo
Oeiras
Lisboa
Oeiras
Lisboa
PRT
Phone:351 21 4147100
Fax:351 21 4144754
www.pepsi.pt
Pepsi-Cola SR sro
Seldom Nadrazna 534
Malacky
Bratislava
Malacky
Bratislava
SVK
Phone:421 347 963110
www.pepsico.sk
Sakata Rice Snacks Australia Pty Ltd
Level 8
Tower A, 799 Pacific Highway
Chatswood
Sydney
New South Wales
Sydney
New South Wales
AUS
Phone:61 1800 025789
www.sakata.com.au
The Quaker Oats Company
P.O. Box 049003
Chicago
Illinois
Chicago
The Smith'S Snackfood Company Ltd
Level 8
799 Pacific Highway
Chatswood
New South Wales
PepsiCo Inc
Locations And Subsidiaries
PepsiCo Inc
© MarketLine
Page 67
Illinois
USA
Phone:1 312 8211000
www.quakeroats.com
Chatswood
New South Wales
AUS
Phone:61 2 99511799
Fax:61 2 99511797
www.smiths.com.au
Tropicana Europe N.V.
Imperiastraat 6
Zaventem
Brabant Flamand
Zaventem
Brabant Flamand
BEL
Phone:32 27 140540
Fax:32 27 140541
www.tropicana.be
Tropicana Products Inc
P.O. Box 049003
Chicago
Illinois
Chicago
Illinois
USA
www.tropicana.com
Tropicana UK Ltd
450 South Oak Way, Green Park
Reading
Berkshire
Reading
Berkshire
GBR
www.tropicana.co.uk
Veurne Snack Foods BVBA
Imperiastraat 6
Zaventem
Brabant Flamand
Zaventem
Brabant Flamand
BEL
Phone:32 2 7140540
Fax:32 2 7140541
Walkers Snack Foods Ltd
Freepost Le4 918
Leicester
Leicestershire
Leicester
Leicestershire
GBR
www.walkers.co.uk
Wimm-Bill-Dann Foods OJSC
Dmitrovskoye Highway
Moscow
Moscow
RUS
Phone:7 495 9255805
Fax:7 495 9255800
www.wbd.ru
A Progressive Digital Media business
John Carpenter House, John Carpenter Street, London, United
Kingdom, EC4Y 0AN
T: +44 (0) 203 377 3042 | F: +44 (0) 870 134 4371 | E:
[email protected] | W: www.marketline.com
Company Overview Key Facts Business Description History
Key Employees Key Employee Biographies Major Products &
Services SWOT Analysis Top Competitors Company View
Locations And Subsidiaries
BR N S
BRE AK T HR U
2 17
64
fortune.com // jan.01.17
1 . I N S T E A D O F F I X AT I N G O N T H E O F T E N
N E B U L O U S
“ B R A N D ,” think of how you can “own a category” in the
minds of 1,000 die-hard fans who can then act as your
strongest marketing force. If you can’t be No. 1 or No. 2
in a category (“Uber for X,” imported light beer, low-cost
airline, whatever), find or create another category.
M Y S A C R E D R U L E S
O F B R A N D I N G
T I M F E R R I S S , EARLY-STAGE INVESTOR
(UBER, FACEBOOK, TWITTER, ALIBABA,
ETC.) AND AUTHOR OF THE NO. 1 NEW
YORK TIMES BESTSELLER TOOLS OF
TITANS: THE TACTICS, ROUTINES, AND
HABITS OF BILLIONAIRES, ICONS, AND
WORLD-CLASS PERFORMERS.
A I R B N B I N S T A G R A M S L A C K S N A P C H A T
S P O T I F Y
F
E
R
R
IS
S
:
A
N
D
R
E
W
K
E
L
L
Y
BRE AK T HR U H
65
fortune.com // jan.01.17
W H AT D O E S I T TA K E F O R A B R A N D to truly break
through in today’s crowded market? Just as it has
with everything else, digital transformation has
upended the traditional rules of marketing. In less
than a decade brands like Uber and Airbnb have
attained the kind of consumer mindshare that com-
panies used to have to work decades to create. Part
of this is the simple fact that most of these newer
brands are technology companies; they provide
products and services that themselves can be built
almost overnight, thanks to the proliferation of
smartphones, cloud computing, and fast, free, and
universally accessible digital tools. But many of
these brands are also resonating on a deeper level
with consumers. We wanted to get to the bottom
of which companies best exemplified this—those
brands that have attained the emotional reso-
nance with consumers typically reserved for big
blue-chip companies, but in a fraction of the time.
So we surveyed 4,000 consumers and asked them
to name the brands that meant the most to them,
both overall and across a variety of industries.
We then sorted the list by industry, category, and
age to come up with our list of 10 “Breakthrough
Brands”—companies that, when measured on the
basis of how they resonate with consumers, sit side
by side with Apple, Coca-Cola, Disney, and other
mature brands despite being relative babes. The
10 names here are new and white-hot; they are all
tech companies; and they have all “broken through”
to claim space among the giants. All but two of
them are less than a decade old.
We’ve also shared some other key findings from our
survey, like the brands that received the most men-
tions overall—those that may have broken through
decades ago but still register highly in consumers’
minds. On that list, Apple trounced everyone else.
But it’s the breakthrough brands of today that we
find most compelling. These are the ones that are
best positioned to become the Apples of tomorrow.
2 . D O N ’ T M A K E A P R O D U C T F O R “ E V E R
Y O N E .” If everyone is your market, no one
is your market. Particularly with the first versions of your
product or service, it’s
better to have 1,000 people who love you (and many who hate
you) than 100,000
who think you’re kinda, sorta cool. “Great” to 1,000 edge-case
nerds beats “good”
to 100,000 of anything else, every time. In a social-sharing-
driven world, cultivate
the intense few instead of the lukewarm many.
3 . F O R G E T B R A N D I N G . Think about consis-
tently over-delivering one or two benefits to
your customers/users/fans. Branding is a side
effect of consistent association. Don’t put the
cart before the horse. Put good business first,
and good “brand” will follow.
S Q U A R E T E S L A U B E R V E N M O W A Z E
S U R V E Y S C O N D U C T E D B Y M O R N I N G C O N
S U LT A N D T I M E I N C .
A I R B N B
I N S T A G R A M S L A C K
66
fortune.com // jan.01.17
WORKPLACE CHAT SERVICE Slack
was an accidental success.
Originally developed as an
internal tool, the company—then
named Tiny Speck—took a big
bet on launching it to the outside
world in 2013 after its original
product, a videogame named
Glitch, wasn’t paying off. Slack
wasn’t the first app for chatting
with coworkers—HipChat, Yam-
mer, and others came before
it—but it had a quirky design and
slick user interface, and perhaps
most critically, it came at just
the right time: taking the tech
industry by storm as it spread
among the then-exploding
number of new Silicon Valley
startups. Today the service has
more than 4 million daily active
users—1.25 million of them
paying—and Slack’s colorful
plaid logo has become an icon in
Silicon Valley. —Kia Kokalitcheva
CANDID PHOTOS OF FRIENDS with
a vintage patina, vistas with
vivid hues, close-ups of fancy
cocktails—Instagram’s 2010 de-
but made everyone seem like a
shutterbug—and everyone could
be, thanks to the app that brought
professional-grade photo tools
to the iPhone-holding masses.
But Facebook’s billion-dollar
acquisition of the fast-growing
photo app in 2012 accelerated
everything. Then Instagram had
30 million users; today it has
more than 500 million. What
started as a faddish distrac-
tion developed into a full-blown
social network. Once a serious
threat to Facebook, Instagram
is now a critical pillar (alongside
WhatsApp, Oculus VR, and the
company’s namesake service)
of its $25 billion business. And
you can still use it to take a great
photo. —Andrew Nusca
A P AY M E N T S A P P or a messaging service is one thing.
Opening
up peoples’ homes to let strangers stay in them? Well, that’s
just crazy. That’s what lots of smart people thought back in
2008 when Airbnb’s founders were trying to get their startup
off the ground. Some 140 million “guest arrivals” later, it has
reimagined travel, building an online platform for home-based
accommodations with lush, inviting photography, an easy in-
terface, and appealing prices, all wrapped in the cozy image of
“belonging.” This company has its challenges, like discrimina-
tory behavior by its users and pushback from regulators—but
breaking through has not been one of them. —Leigh Gallagher
APPLE
1,229
GOOGLE
346
WALMART
396
AS PART OF OUR METHODOLOGY, we asked respondents
to name one company in any category that best
exemplified a breakthrough brand. Apple topped
the list—and got more than three times the mentions
of the runner-up, Walmart. Here are the top 15.
T H E A L L - S T A R
B R A N D S
FOUNDED: 2008 HEADQUARTERS: SAN FRANCISCO
FOUNDED: 2010
HQ: MENLO PARK, CALIF.
FOUNDED: 2009
HQ: SAN FRANCISCO
B R E A K T H R O U G H
B R A N D S
2 0 1 7
S P O T I F Y
S N A P C H A T S Q U A R E
67
fortune.com // jan.01.17
PLENTY OF PARENTS are still thor-
oughly confused by the mobile
ephemeral-messaging app, but
that doesn’t matter to Snap-
chat, which has achieved the
holiest of holy grails: capturing
the fickle hearts—and precious
time—of teenagers and young
adults the world over. It now has
150 million daily active users,
numbers that have prompted
attempts by Facebook and
Instagram to copy some of
Snapchat’s most popular fea-
tures. The ambitions of parent
company Snap have grown in
lockstep with Snapchat’s scale
as it moves beyond mobile
apps for sending photos
and reading bite-size news
from media giants like ESPN
and People: In the fall, Snap
unveiled its first pair of video-
recording sunglasses, called
Spectacles. —Kia Kokalitcheva
JACK DORSEY’S other company,
Twitter, gets all the attention—
good and bad. But Dorsey
also runs Square, the com-
pany whose little white dongles
changed small business forever.
The idea was simple enough:
Give away small credit card
readers that connect to mobile
phones and tablets and charge
the same rate for each transac-
tion, regardless of the type of
card. Square was the first to
make that easy, and along with
its user-friendly accounting
services, it fast became a tool
of economic empowerment
for tutors, dog walkers, and
shingle hangers of all stripes.
Dorsey may or may not remain
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COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx
COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx

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COMPANY PROFILEPepsiCo IncREFERENCE CODE 26FFE4D9-E51.docx

  • 1. COMPANY PROFILE PepsiCo Inc REFERENCE CODE: 26FFE4D9-E51D-4F5B-AC02- 76DC923525A7 PUBLICATION DATE: 22 Oct 2018 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED A Progressive Digital Media business http://www.marketlineinfo.com/ PepsiCo Inc TABLE OF CONTENTS PepsiCo Inc © MarketLine Page 2 TABLE OF CONTENTS Company Overview ............................................................................................... ......... 3 Key Facts ...............................................................................................
  • 2. .......................... 3 Business Description ............................................................................................ ... ...... 4 History ............................................................................................... .............................. 5 Key Employees .............................................................................................. . .............. 41 Key Employee Biographies .........................................................................................43 Major Products & Services ..........................................................................................46 SWOT Analysis ............................................................................................... .............. 49 Top Competitors ............................................................................................... ............ 55 Company View ............................................................................................... ............... 56 Locations And Subsidiaries ........................................................................................59 PepsiCo Inc Company Overview PepsiCo Inc © MarketLine Page 3
  • 3. Company Overview COMPANY OVERVIEW PepsiCo Inc (PepsiCo) is a manufacturer of a wide range of beverages, foods and snacks. It sells products under various brands including Pepsi, Pepsi Max, Mountain Dew, Diet Pepsi, Lay's, Frito-Lay, Doritos, 7-Up, Tropicana, Aquafina, Mirinda, Gatorade and Quaker, V Water, Ya, Tostitos, Simba and Trop 50. PepsiCo distributes its products through direct-store- delivery, customer warehouse and foodservice, and vending distribution networks. Its customers include grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, wholesale and other distributors, e-commerce retailers and authorized independent bottlers. It has business operations across North America, South America, Europe, Asia-Pacific, the Middle East and Africa. PepsiCo is headquartered in Purchase, New York, the US. The company reported revenues of (US Dollars) US$63,525 million for the fiscal year ended December 2017 (FY2017), an increase of 1.2% over FY2016. In FY2017, the company’s operating margin was 16.5%, compared to an operating margin of 15.6% in FY2016. In FY2017, the company recorded a net margin of 7.6%, compared to a net margin of 10.1% in FY2016. Key Facts KEY FACTS Head Office PepsiCo Inc 700 Anderson Hill Road
  • 4. Purchase New York Purchase New York USA Phone 1 914 2532000 Fax 1 914 2532070 Web Address www.pepsico.com Revenue / turnover (USD Mn) 63,525.0 Financial Year End December Employees 263,000 New York Stock Exchange Ticker PEP PepsiCo Inc Business Description PepsiCo Inc © MarketLine Page 4 Business Description BUSINESS DESCRIPTION PepsiCo Inc (PepsiCo), a food and beverage company, markets, distributes and sells salty, sweet and grain based snacks, food products, carbonated and non- carbonated beverages in approximately 200 countries and territories worldwide. The company operates through six reportable segments: North America Beverages (NAB), Frito-Lay
  • 5. North America (FLNA), Europe Sub-Saharan Africa (ESSA), Latin America, Asia, Middle East and North Africa (AMENA) and Quaker Foods North America (QFNA), which accounted for 33%, 24.9%, 17.4%, 11.3%, 9.5% and 3.9% of the company's total revenue, respectively, in FY2017. The company conducts a variety of (R&D) activities and continues to invest to augment its growth and drive innovation worldwide. Its R&D focuses on the development of nutritious and convenient beverages, foods and snacks, meeting changing consumer demands and preferences. In FY2017, the company spent US$737 million on R&D, which was 1.2% of its revenue and decreased 3% YoY. It has R&D facilities in Brazil, China, India, Mexico, Russia, the UAE, the UK and the US. PepsiCo has three snack plants in Mexico, and one each in Egypt and Australia; a snack, beverage and dairy plant in Russia; a food plant in in the US; a fruit juice plant in Belgium; a beverage plant in Egypt; and two concentrate plants in Ireland. The company distributes its products through direct-store- deliveries (DSD), customer warehouse and distributor networks to various wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, e- commerce retailers and authorized independent bottlers. In addition, it authorizes various independent bottlers to produce certain beverage products in specific geographic regions. PepsiCo also supplies food and snacks to various restaurants, businesses, schools and stadiums through various third-party
  • 6. foodservice and vending distributors and operators. PepsiCo Inc History PepsiCo Inc © MarketLine Page 5 History HISTORY Contracts/Agreements Year: 2018 In January, the company entered into a strategic partnership with Varun Beverages Ltd. New Products/Services Year: 2018 In January, the company introduced MTN DEW ICE, a new carbonated soft drink made with a splash of real juice. Plans/Strategy Year: 2018 In February, the company's subsidiary Frito-Lay announced to
  • 7. launch a special kind of Dorito chips. Acquisitions/Mergers/Takeovers Year: 2018 In February, Clayton, Dubilier & Rice and American Greetings agreed to acquire 60% stake in American Greetings. New Products/Services Year: 2018 In February, PepsiCo launched a new sparkling water, bubly, that combines refreshing and delicious flavors. New Products/Services Year: 2018 In January, the company’s Frito-Lay division introduced Doritos Blaze, a new snack flavor. New Products/Services PepsiCo Inc History PepsiCo Inc © MarketLine Page 6
  • 8. Year: 2018 In February, the company launched a new Drinkfinity flavored water system in the US. New Products/Services Year: 2018 In February, the company launched a new personalized beverage, Drinkfinity to fit the individual lifestyles of today's busy go-getters. Contracts/Agreements Year: 2018 In February, PepsiCo extended its partnership with the UEFA Champions League for further three years. Contracts/Agreements Year: 2018 In January, PepsiCo along with the National Hockey League Players' Association and the National Hockey League entered into a multi-year extension for exclusive NHL North American rights in the non- alcoholic beverage, sports nutrition and savory snack categories. Contracts/Agreements Year: 2018
  • 9. In January, PepsiCo entered into a partnership with NFL, Aramark, the US Bank Stadium and the Minnesota Sports Facilities Authority announced Rush2Recycle, a game plan to recover more than 90% - more than 40 tons - of stadium waste at Super Bowl LII. New Products/Services Year: 2018 In March, PepsiCo introduced a new baby food production line to its infant nutrition plant in Omsk, Russia. Plans/Strategy Year: 2018 PepsiCo Inc History PepsiCo Inc © MarketLine Page 7 In March, the company plans to build a new distribution plant in Chesterfield, Virginia, the US. New Products/Services Year: 2018 In May, the company introduced new diet and regular pepsi cans
  • 10. with in 20oz and 12oz formats. New Products/Services Year: 2018 In May, PepsiCo Foodservice launched an online platform, PepsiCo Partners, expanding its business into an ecommerce segment. Acquisitions/Mergers/Takeovers Year: 2018 In May, the company agreed to acquire Bare Foods Co, a baked fruit and vegetable snack maker, expanding its snack portfolio. Product Recall Year: 2018 In May, PepsiCo Foods Canada announced the voluntary recall of 750 bags of its Ruffles Regular- flavoured potato chips due to an unintentional filling of bags with Ruffles Sour Cream 'N Onion-flavoured potato chips. Contracts/Agreements Year: 2018 In June, PepsiCo North America Nutrition partnered with a nonprofit food and beverage incubator, The Hatchery Chicago for the Chicago incubator project.
  • 11. Contracts/Agreements Year: 2018 In July, the company awarded a contract to Eddie Stobart for managing its ambient transport operations in England and Wales from existing distribution centres in Birchwood and Leicester, the UK. Plans/Strategy PepsiCo Inc History PepsiCo Inc © MarketLine Page 8 Year: 2018 In July, the company planned to launch The Hive, a new center for innovation to assist cultivate its niche brands. Contracts/Agreements Year: 2018 In July, PepsiCo Foodservice and CS Group extended their distribution agreement to distribute CS Group's Cool Attitudes Craft Mixers in the US. Plans/Strategy
  • 12. Year: 2018 In July, the company's Frito-Lay division plans to release the most chip flavors to give fans a regionally inspired Summer Of Flavor. Plans/Strategy Year: 2018 In July, the company's product, Lay's announced its plans to introduce eight regional potato chip flavors. Contracts/Agreements Year: 2018 In July, the company entered into a partnership with the Madison Square Garden to become the exclusive non-alcoholic beverage and salty snack partner across MSG Venues. Plans/Strategy Year: 2018 In July, the company plans to improve the nutritional value of some of its best selling products in line through its Results with Responsibility initiative. Plans/Strategy Year: 2018 In July, the company announced its plans to invest US$159
  • 13. million for expanding two Frito-Lay snack PepsiCo Inc History PepsiCo Inc © MarketLine Page 9 manufacturing plants in Frankfort, Indiana, the US. Financing Agreements Year: 2018 In August, the company planned to invest US$100 million to expand and renovate a food factory in Shanghai, China. New Products/Services Year: 2018 In August, the company relaunched its Quaker cereals in the UK with less sugar. Plans/Strategy Year: 2018 In August, the company plans to invest US$159million to expand its Frito-Lay production site in Frankfort, Indiana.
  • 14. Contracts/Agreements Year: 2018 In August, the company entered into a multiyear agreement with Marriott International as a beverage provider to expand their relationship. Acquisitions/Mergers/Takeovers Year: 2018 In August, the company announced its plans to acquire Israel- based carbonated water machines supplier, SodaStream for US$3.2 billion. New Products/Services Year: 2018 In August, the company launched the Hive, a new entity in North America. New Products/Services Year: 2018 PepsiCo Inc History PepsiCo Inc © MarketLine
  • 15. Page 10 In September, the company launched its Nutrition Greenhouse accelerator program to discover and support emerging brands in the food and beverage sector in North America. Contracts/Agreements Year: 2018 In September, the company joined NaturALL Bottle Alliance, a consortium formed between Danone, Nestle Waters and Origin Materials to develop bio-based bottles. Contracts/Agreements Year: 2018 In September, the company announced to expand its global relationship with HH Global to offer marketing execution services and to enhance their presence. New Products/Services Year: 2018 In September, the company's salty snacks division introduced three new flavors under its brand, Kurkure. Others Year: 2018 In September, PepsiCo announced new Rubtsovsk dairy plant
  • 16. investment projects in Russia. Contracts/Agreements Year: 2018 In October, the company partnered with Loop to introduce recycled plastic packaging. Contracts/Agreements Year: 2018 In October, Pepsi signed a memorandum of understanding with Odisha State Government to build a potato chips unit in Odisha, India. Others PepsiCo Inc History PepsiCo Inc © MarketLine Page 11 Year: 2018 In October, the company launched its carbonated beverage portfolio in takeaway glass bottles for consumers in Maharashtra, India. Contracts/Agreements
  • 17. Year: 2018 In October, Pspsico selected Jubilant Foodworks as its new beverage partner for Domino’s Pizza India. Acquisitions/Mergers/Takeovers Year: 2018 In October, the company announced the acquisition of Health Warrior, Inc. Acquisitions/Mergers/Takeovers Year: 2018 In November, the company announced its plans to acquire Lincolnshire crisp company, Pipers Crisps. Contracts/Agreements Year: 2017 In February, the company entered into an agreement to change its naked juice labels in the US. Business / Operations Closure Year: 2017 In March, the company announced to close its Walkers Snacks factory in Peterlee, County Durham, England. Contracts/Agreements
  • 18. Year: 2017 In March, the company introduced Pepsi Max Ginger, a new sugar-free addition to the Max line-up. Contracts/Agreements Year: 2017 PepsiCo Inc History PepsiCo Inc © MarketLine Page 12 In April, the company's Foodservice and Papa John’s International renewed its multi-year beverage contract in the US and a global expansion of the partnership in eight countries throughout Europe, the Middle East and Central America. Contracts/Agreements Year: 2017 In March, the company's Frito-Lay division and Lay's partnered to introduce Poppables, a new potato snack. Plans/Strategy
  • 19. Year: 2017 In May, Pepsi planned to sell stake in its UK bottler Britvic. Acquisitions/Mergers/Takeovers Year: 2017 In May, the company announced plans to acquire coconut water brand, Vita Coco. Others Year: 2017 In June, the company announced to launch LIFEWTR Series 2 bottle with labels designed by female artists. New Products/Services Year: 2017 In March, the company's Mtn Dew announced a plan to introduce a line of premium sodas with crafted unique flavors and herbal and citrus bitters. New Products/Services Year: 2017 In March, the company introduced three new flavors Orange Mango, Lemon Lime and Strawberry Melon in IZZE FUSIONS beverages.
  • 20. PepsiCo Inc History PepsiCo Inc © MarketLine Page 13 Contracts/Agreements Year: 2017 In March, the company entered into a collaboration agreement with Danimer Scientific for the development of Danimer Scientifics’ biodegradable film resins to meet the sustainable flexible packaging requirements of PepsiCo’s global food and beverage business. Contracts/Agreements Year: 2017 In May, the company's Lipton partners with Food Network Star and The Series Co-Host, Chef Bobby Flay to host lipton summer camp. Contracts/Agreements Year: 2017 In May, the company entered into a partnership agreement with Healthier America to independently report and verify the company's progress. New Products/Services
  • 21. Year: 2017 In May, the company introduced new limited-edition beverage, Pepsi Fire. Contracts/Agreements Year: 2017 In May, PepsiCo Greater China Region entered into a strategic agreement with Alibaba Group to introduce innovative marketing initiatives, customized products and integrated omnichannel solutions. New Products/Services Year: 2017 In May, the company introduced a new sparkling lemonade LEMON LEMON. Corporate Changes/Expansions Year: 2017 PepsiCo Inc History PepsiCo Inc © MarketLine Page 14
  • 22. In June, the company opened its nacho chip brand Doritos in India at its Kolkata plant. Contracts/Agreements Year: 2017 In July, the company became the funding partner to National nonprofit The Recycling Partnership. New Products/Services Year: 2017 In July, Ruffles Brand Potato Chips, one of the marquee brands from PepsiCo's Frito-Lay division introduced Chips & Sips. New Products/Services Year: 2017 In August, Doritos, one of the marquee brands from PepsiCo's Frito-Lay Division introduced new Blazin' Buffalo Mix, a combination of four fan-favorite flavors - Chipotle, Cool Ranch, Blue Cheese. New Products/Services Year: 2017 In November, the company launched salted caramel flavor in the market. Contracts/Agreements
  • 23. Year: 2017 In November, Suntory Beverage & Food Asia entered into agreement to acquire a 51% share in International Refreshment, a beverage operation of PepsiCo. Contracts/Agreements Year: 2017 In December, the company, the PepsiCo Foundation and the Inter-American Development Bank created the Hydro-BID Support Center in Latin America and the Caribbean, for Water Management. New Products/Services Year: 2017 PepsiCo Inc History PepsiCo Inc © MarketLine Page 15 In November, Doritos, the company's Frito-Lay Division, introduced Doritos Crunch Nuts and Doritos Crunch Mix. Contracts/Agreements Year: 2017
  • 24. In September, the company's Mountain Dew and AMC partnered to launch its new augmented reality app, "The Walking Dead Encounter" with the experience of zombie walkers. Contracts/Agreements Year: 2017 In November, the company partnered with Suntory Beverage & Food Asia Pte Ltd., to form a beverage joint venture in Thailand. Contracts/Agreements Year: 2017 In July, the company and Molson Coors partnered to provide bar snacks as part of its on-premise delivery service. New Products/Services Year: 2016 The company's subsidiary The Quaker Oats Company launched a new Quaker Breakfast Flats. New Products/Services Year: 2016 The company's brand Aquafina, introduced a new line of flavored sparkling water to its menu.
  • 25. New Products/Services Year: 2016 The company’s subsidiary The Quaker Oats Company launched Quaker SuperGrains Instant Hot Cereal and Real Medleys SuperGrains Granola for breakfast. New Products/Services PepsiCo Inc History PepsiCo Inc © MarketLine Page 16 Year: 2016 The company’s brand Aquafina, launched Aquafina Sparkling, flavored sparkling water. New Products/Services Year: 2016 The company introduced Mtn Dew Black Label, a carbonated soft drink. New Products/Services Year: 2016
  • 26. The company expanded its product line Brisk by introducing a new Brisk Mate, a smooth energizing iced tea blended with South American yerba mate. New Products/Services Year: 2016 The company’s brand Doritos introduced Doritos Mix, a unique combination of four different Doritos shapes and flavors in one bag. Corporate Changes/Expansions Year: 2016 The company announced plans to open Kola House, the first experimental kola bar, restaurant, lounge and event space, in the New York, the US. New Products/Services Year: 2016 The company’s subsidiary The Quaker Oats Company launched a new line of gluten free oatmeal. Contracts/Agreements Year: 2016 The company entered into a collaboration agreement with Senomyx, Inc., to restat Senomyx's Sweet Taste Program.
  • 27. PepsiCo Inc History PepsiCo Inc © MarketLine Page 17 Acquisitions/Mergers/Takeovers Year: 2016 The company announced plans to acquire KeVita Inc., a probiotic US drinks company. Litigation Year: 2016 The company's Quaker Oats was sued by consumers in the US states of New York, California and Illinois, for false advertising over the ingredients in its product. Acquisitions/Mergers/Takeovers Year: 2016 The company entered into a definitive agreement to acquire KeVita. New Products/Services Year: 2016 In December, the company launched a new premium priced
  • 28. bottled water, dubbed Lifewtr in the US. Contracts/Agreements Year: 2016 In October, PepsiCo entered into a collaboration with TB Alliance to improve the treatment for children with tuberculosis. New Products/Services Year: 2016 In September, the company launched a new 100% juice with probiotics, Tropicana Essentials Probiotics. Acquisitions/Mergers/Takeovers Year: 2016 In May, Trian Fund Management sold stake to PepsiCo for US$2 billion. Contracts/Agreements PepsiCo Inc History PepsiCo Inc © MarketLine Page 18
  • 29. Year: 2015 The company signed a cooperation agreement with OAO Lidskoe Pivo to sell, distribute and market its products in Belarus. New Products/Services Year: 2015 The company announced its plans to launch stevia-sweetened Pepsi True in stores across Denver, Minneapolis and Washington, the US. New Products/Services Year: 2015 The company launched two new flavors of its brand, Mountain Dew in the US. New Products/Services Year: 2015 The company started to sell imported premium snacks and fruit juices in India through exclusive e- commerce platforms. Business / Operations Closure Year: 2015 The company announced its plans to close one of its plants in Russia.
  • 30. Plans/Strategy Year: 2015 The company announced its plan to expand production in Egypt with an investment of US$500 million. New Products/Services Year: 2015 The company introduced a citrus-flavoured soft drink called DewShine under its Mountain Dew brand. Contracts/Agreements PepsiCo Inc History PepsiCo Inc © MarketLine Page 19 Year: 2015 PepsiCo Americas Beverages entered a marketing alliance with Live Nation Entertainment, Inc., a leading live entertainment firm. Corporate Changes/Expansions Year: 2015
  • 31. The company launched 7UP Revive brand in India. New Products/Services Year: 2015 The company's brand Mountain Dew launched Mtn Dew Baja Blast and Mtn Dew Sangrita Blast for a limited period. New Products/Services Year: 2015 The company launched chocolate peanut butter flavored popcorn under its Cracker Jack brand. New Products/Services Year: 2015 The company launched Doritos Jacked 3D tortilla snacks under its Doritos brand. New Products/Services Year: 2015 The company introduced Cheetos Sweetos Snacks under the Cheetos brand. Contracts/Agreements Year: 2015 The company entered into a partnership with Pepsi-Cola
  • 32. Products Philippines, Inc., for development of Cheetos in the Philippines. Commercial Operation PepsiCo Inc History PepsiCo Inc © MarketLine Page 20 Year: 2015 The company announced to invest US$12 million to modernize its Frito-Lay plant in Cambridge to make the production lines more efficient and ergonomically safe. Plans/Strategy Year: 2015 The company announced to continue selling its aspartame- sweetened diet Pepsi online after removing the artificial sweetener from the product. Contracts/Agreements Year: 2015 The company expanded its partnership with SodaStream International Ltd to strengthen sales of its branded cola caps.
  • 33. Contracts/Agreements Year: 2015 The company partnered with JD.com Inc., to introduce the Quaker oat dairy drink to the consumers in China. Contracts/Agreements Year: 2014 The company entered into Strategic Alliance agreement with Shanghai Disney Resort as a primary beverage supplier. New Products/Services Year: 2014 The company launched a new Cheetos Flamin’ Hot / Doritos Dinamita Chile Limon in a combo pack. Contracts/Agreements Year: 2014 The company entered into an agreement with Cartoon Network Amazone to provide food and beverage PepsiCo Inc History
  • 34. PepsiCo Inc © MarketLine Page 21 to the Cartoon Network's themed park. New Products/Services Year: 2014 The company's Frito-Lay division launched a new snack, Near East Multigrain Chips. Corporate Changes/Expansions Year: 2014 The company’s Frito-Lay division expanded distribution of Lay's Air Pops crisps in California and the Pacific Northwest region of the US with new Salt & Vinegar flavor. Contracts/Agreements Year: 2014 The company extended its collaborative agreement to use Senomyx’s sweet flavor ingredients in non- alcoholic beverages till August 2016. New Products/Services Year: 2014 The company launched three models of Pepsi Spire dispensers.
  • 35. Corporate Changes/Expansions Year: 2014 PepsiCo and its local bottler in Myanmar, Lotte MGS Beverages announced commencement of local production of Pepsi-Cola for the first time since 1997. Corporate Changes/Expansions Year: 2014 The company entered into a joint venture agreement with German dairy company Theo Muller and formed Wave Holdings to establish US$206 million yogurt facility in Batavia, New York, the US. Corporate Changes/Expansions Year: 2014 PepsiCo Inc History PepsiCo Inc © MarketLine Page 22 PepsiCo South Africa opened a new Simba manufacturing facility in Prospecton, KwaZulu-Natal, South Africa.
  • 36. Contracts/Agreements Year: 2014 The company renewed its partnership of over 16 years with the Papa Murphy's Holdings, Inc., a franchisor and operator of Take ‘N’ Bake pizza chain based in the US. Corporate Changes/Expansions Year: 2014 PepsiCo and Almarai announced to invest US$345 million in Egypt over the next five years through Beyti, a subsidiary of International Dairy & Juice Ltd. Corporate Changes/Expansions Year: 2014 The company opened a new research and development facility in Dubai, the UAE. Corporate Changes/Expansions Year: 2014 The company opened a new snack production plant in Dammam, Saudi Arabia. New Products/Services Year: 2014 The company's Quaker Oats division launched Quick 3-Minute
  • 37. Steel Cut Oatmeal and Real Medleys Super Grains products. Contracts/Agreements Year: 2014 The company's subsidiary PepsiCo Foods Vietnam Company signed a Memorandum of Understanding with the Department of Agriculture and Rural Development and the Phivang Collaboration of Farmers in Vietnam to introduce a sustainable contract potato farming model into Vietnam. PepsiCo Inc History PepsiCo Inc © MarketLine Page 23 New Products/Services Year: 2014 Quaker Oats, a division of PepsiCo launched Quaker Instant Oats Caldo, an exciting, innovative and nutritious new range of instant porridge products across the Philippines. New Products/Services Year: 2013
  • 38. The company expanded the Tropicana portfolio in India by adding three new variants of juices. New Products/Services Year: 2013 The company’s Mountain Dew unit launched a sparkling juice beverage called Kickstart, in two flavors, Orange Citrus and Fruit Punch. Contracts/Agreements Year: 2013 PepsiCo and Tata Global Beverages entered in to an agreement to form a joint venture for non- carbonated ready to drink health and wellness drinks. Corporate Changes/Expansions Year: 2013 Muller Quaker Dairy, a joint venture between PepsiCo and The Muller Group, open a new ‘state of the art’ yogurt production site in Batavia, New York. Corporate Changes/Expansions Year: 2013 The company opened baking innovation center in Apodaca, Nuevo Leon, Mexico. Corporate Changes/Expansions
  • 39. Year: 2013 PepsiCo announced that it would be investing around US$5.5 billion over six years in expansion of its PepsiCo Inc History PepsiCo Inc © MarketLine Page 24 operations in India. Contracts/Agreements Year: 2013 PepsiCo (49%) and Suntory Holdings (51%) entered into a joint venture in Vietnam, establishing Suntory PepsiCo Vietnam Beverage (SPVB). Research and Development Year: 2012 The company opened an R&D center in Shanghai. Acquisitions/Mergers/Takeovers Year: 2012
  • 40. The company formed an alliance with Ocean Spray Cranberries, Inc. to distribute cranberry and blueberry based beverages in Latin America. Commercial Operation Year: 2012 The company opened a food manufacturing plant in Wuhan, China. Commercial Operation Year: 2012 The company opened a beverage plant in China along with Tingyi (Cayman Islands) Holding Corp. Others Year: 2012 Mountain Dew, Brisk and Starbucks join PepsiCo’s billion dollar brand list, taking the number to 22. Contracts/Agreements Year: 2012 PepsiCo announced an agreement with Diamond Star, one of the largest consumer packaged goods PepsiCo Inc History
  • 41. PepsiCo Inc © MarketLine Page 25 distributors in Myanmar to import, sell and distribute Pepsi- Cola, 7-Up and Mirinda. New Products/Services Year: 2012 The company launched Pepsi Next brand. Stake Sale Year: 2012 The company's minority stake was acquired by Relational Investors LLC. Contracts/Agreements Year: 2011 Burger King Corporation selected PepsiCo as the exclusive soft drink supplier in more than 1,000 of its restaurants throughout Latin America and Caribbean region. Contracts/Agreements Year: 2011 Atlanta's Stevi B's awarded exclusive beverage pouring rights in all of its 44 locations to PepsiCo.
  • 42. Contracts/Agreements Year: 2011 Grupo Embotelladoras Unidas, S.A.B. de C.V. (GEUPEC), Empresas Polar and PepsiCo signed an agreement to create a nationwide beverage company in Mexico. Contracts/Agreements Year: 2011 The company and Strauss Group planned to form a joint venture to produce and sell fresh dips and spreads in markets outside of North America. Contracts/Agreements Year: 2011 PepsiCo Inc History PepsiCo Inc © MarketLine Page 26 The company signed an agreement with The University of Delaware for exclusive beverage pouring rights on Newark and Wilmington campuses. Contracts/Agreements
  • 43. Year: 2011 The company entered into an Exclusive Bottling Appointment with the Alokozay Group of Companies to manufacture and distribute a range of PepsiCo beverages in Afghanistan. Contracts/Agreements Year: 2011 The company and the Inter-American Development Bank (IDB) partnered to foster social and economic growth in Latin America and the Caribbean. Contracts/Agreements Year: 2011 The company began offering five options of eco-friendly, recyclable and compostable cups to foodservice customers in the US. Acquisitions/Mergers/Takeovers Year: 2011 PepsiCo acquired 66.00% of Wimm-Bill-Dann Foods OJSC, a Russia-based branded food-and-beverage company. Acquisitions/Mergers/Takeovers Year: 2011
  • 44. The company acquired Mabel, a leading producer of biscuits and snacks in Brazil. Acquisitions/Mergers/Takeovers Year: 2011 PepsiCo and Tingyi Holding, a major food and beverage company in China, announced that they had agreed to form a strategic alliance in China. Contracts/Agreements PepsiCo Inc History PepsiCo Inc © MarketLine Page 27 Year: 2011 The company signed a multi-year agreement with Burger King Corporation to become its soft drink provider for restaurants in Latin America and the Caribbean. Contracts/Agreements Year: 2010 PepsiCo Beverages Americas entered into an agreement with The FRS Company to distribute its FRS Healthy Energy brand of products,
  • 45. Contracts/Agreements Year: 2010 The company signed a four-year collaborative agreement with Senomyx, Inc., a company focused on using proprietary technologies, to discover and develop novel flavor ingredients for the food, beverage, and ingredient supply industries. Contracts/Agreements Year: 2010 PepsiCo and GNC, a specialty retailer of nutritional products, signed a joint venture agreement to develop and sell fortified coconut water products under the newly created Phenom brand name. Contracts/Agreements Year: 2010 The company’s division, Pepsi Beverages Company, and Tampico Beverages, Inc. signed a distribution agreement to distribute TAMPICO PLUS fruit-flavored beverage products through PepsiCo's direct store delivery system in select US markets. Contracts/Agreements Year: 2010 The company signed an agreement with the VSIP Bac Ninh Co. Ltd, to develop a beverage production
  • 46. plant in the VSIP Bac Ninh Integrated Township and Industrial Park. Acquisitions/Mergers/Takeovers PepsiCo Inc History PepsiCo Inc © MarketLine Page 28 Year: 2010 Pepsi Beverages Company acquired Pepsi-Cola Bottling Co. of Yuba City, Inc., a Pepsi-Cola franchised bottler serving parts of northern California. Acquisitions/Mergers/Takeovers Year: 2010 PepsiCo completed the merger of Pepsi Bottling Group, Inc. and PepsiAmericas, Inc. its two largest bottlers in the US for US$7.80 billion. On completion of the merger PepsiCo created a new bottling business called Pepsi Beverages Company. Plans/Strategy Year: 2010 Frito-Lay planned to make 50% of its products with all natural
  • 47. ingredients by the end of 2011. Contracts/Agreements Year: 2009 PepsiCo entered into a definitive merger agreement with its two largest bottlers, The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS) to acquire all of the outstanding shares of common stock. Contracts/Agreements Year: 2009 PepsiCo entered into an agreement with Dr Pepper Snapple Group, Inc. (DPS) to manufacture and distribute certain DPS products. Contracts/Agreements Year: 2009 The company and Calbee Foods Company formed a strategic alliance to produce and sell a range of food products in Japan. Acquisitions/Mergers/Takeovers Year: 2009 PepsiCo Inc History
  • 48. PepsiCo Inc © MarketLine Page 29 The company's Pepsi Bottling Ventures, LLC acquired the assets of Pepsi Cola Bottling Company of Conway-Myrtle Beach, Inc., the Pepsi-Cola franchise bottler based in Conway, South Carolina. Acquisitions/Mergers/Takeovers Year: 2009 The company agreed to acquire Brazil's largest coconut water company, Amacoco Nordeste Ltda. and Amacoco Sudeste Ltda. (Amacoco). Acquisitions/Mergers/Takeovers Year: 2009 The company acquired Karinto snack business in Peru. Acquisitions/Mergers/Takeovers Year: 2009 PepsiCo and Almarai, joint venture, International Dairy and Juice Limited (IDJ), acquired Egypt's international company for agro-industrial projects, Beyti. Plans/Strategy Year: 2009
  • 49. The company established PepsiCo Bottling North America (PBNA) by combining of its two bottlers, PBG and PAS. Contracts/Agreements Year: 2008 The company entered into an agreement to acquire Bulgaria’s Leading Nuts and Seeds Company. Corporate Awards Year: 2008 The company was awarded 2008 Energy Star Partner of the Year Award. Acquisitions/Mergers/Takeovers Year: 2008 PepsiCo Inc History PepsiCo Inc © MarketLine Page 30 The company signed an agreement to acquire Russian juice company, Lebedyansky.
  • 50. Acquisitions/Mergers/Takeovers Year: 2008 The company acquired Spitz International, a Canadian-based manufacturer of sunflower and pumpkin seeds. Plans/Strategy Year: 2008 PepsiCo announced plans to invest USD1 billion in China over the next four years as part of its strategy to expand in emerging markets and broaden its portfolio of local products. Corporate Awards Year: 2007 The company was awarded 2007 Working Mother ‘Best Company for Multicultural Women’. New Products/Services Year: 2007 Aquafina introduced Aquafina Alive, a low calorie, vitamin- enhanced water beverage. New Products/Services Year: 2007 Pepsi-Cola North America launched Diet Pepsi MAX.
  • 51. Acquisitions/Mergers/Takeovers Year: 2007 PepsiCo and Pepsi Americas, Inc jointly acquired Sandora, a leading juice company in Ukraine. Contracts/Agreements Year: 2006 PepsiCo Inc History PepsiCo Inc © MarketLine Page 31 The company signed agreements to acquire New Zealand snack company Bluebird Foods and Naked Juice Company. New Products/Services Year: 2006 Lay's introduced Hot 'n Spicy KC Masterpiece BBQ Potato Chips. Acquisitions/Mergers/Takeovers Year: 2006
  • 52. The company acquired Stacy's Pita Chip Company. Acquisitions/Mergers/Takeovers Year: 2006 Pepsi acquired IZZE beverage company, producer of all-natural carbonated juice. Contracts/Agreements Year: 2005 PepsiCo International established Pioneer Foods, a South African food and beverage company, as its franchisee in South Africa. New Products/Services Year: 2005 PepsiCo launched Quaker Milk Chillers. New Products/Services Year: 2005 The company launched Pepsi Cappuccino in Romania. New Products/Services Year: 2004 Frito-Lay introduced Quaker Chewy Cookies & Milk granola bars and Quaker Fruit & Oatmeal cereal bars.
  • 53. PepsiCo Inc History PepsiCo Inc © MarketLine Page 32 New Products/Services Year: 2004 Frito-Lay launched Doritos and Cheetos Halloween Treat Multi- Sacks. Contracts/Agreements Year: 2003 Pepsi-Cola signed a four-year sponsorship deal with the Canadian Hockey Association, making Pepsi the official soft drink. Corporate Changes/Expansions Year: 2003 PepsiCo established PepsiCo International, to unite all international snack, beverage and food units. Contracts/Agreements Year: 2002
  • 54. PepsiCo and Kenneth Cooper, M.D., M.P.H., of Cooper Concepts Inc. (CCI), a division of the renowned Cooper Aerobics Center in Dallas, TX entered into an agreement to promote nutrition, fitness and wellness. Acquisitions/Mergers/Takeovers Year: 2001 PepsiCo acquired Tasali Foods, Saudi Arabia's leading snack company. New Products/Services Year: 2000 Pepsi-Cola launched Sierra Mist, a caffeine-free, lemon-lime carbonate. Acquisitions/Mergers/Takeovers Year: 2000 PepsiCo, Inc. and The Quaker Oats Company entered into an agreement to merge. PepsiCo Inc History PepsiCo Inc © MarketLine
  • 55. Page 33 Acquisitions/Mergers/Takeovers Year: 2000 PepsiCo, Inc. entered into an agreement to acquire a majority stake in South Beach Beverage Company, producer of the SoBe brand.. Contracts/Agreements Year: 1999 PepsiCo and Suntory Limited signed an agreement to create a joint venture Pepsi Bottling Ventures, linking bottling networks in North Carolina and New York. Acquisitions/Mergers/Takeovers Year: 1998 Frito-Lay acquired Barcel in Chile. Acquisitions/Mergers/Takeovers Year: 1998 PepsiCo acquired Tropicana Products from Seagram Company Ltd. Acquisitions/Mergers/Takeovers Year: 1998 The Frito-Lay Company acquired Smith's Snackfood Company
  • 56. in Australia from United Biscuits Holdings, Inc. Corporate Changes/Expansions Year: 1997 Pepsi-Cola North American bottling operations became a separate unit called The Pepsi-Cola Bottling Co. New Products/Services Year: 1997 PepsiCo Inc History PepsiCo Inc © MarketLine Page 34 The company launched Aquafina bottled water. New Products/Services Year: 1997 Frito-Lay introduced Doritos 3D's Tortilla Chips, a triangle- shaped chip. Corporate Changes/Expansions
  • 57. Year: 1996 Pepsi-Cola’s domestic and international operations were combined into Pepsi-Cola Company. New Products/Services Year: 1995 Pepsi-Cola introduced Smooth Moos Smoothies, a line of low- fat dairy shakes. Contracts/Agreements Year: 1994 The company along with Starbucks formed the North American Coffee Partnership to jointly develop ready-to-drink coffee beverages. New Products/Services Year: 1994 Pepsi-Cola launched its sports drink All Sport. Acquisitions/Mergers/Takeovers Year: 1994 Pepsi-Cola International acquired soft drinks company, Duke and Sons Pvt Ltd in India.. Corporate Changes/Expansions Year: 1994
  • 58. The company began production and distribution of its products in Vietnam. PepsiCo Inc History PepsiCo Inc © MarketLine Page 35 New Products/Services Year: 1993 Frito-Lay launched new Doritos brand Tortilla Thins. Acquisitions/Mergers/Takeovers Year: 1993 PepsiCo acquired East Side Mario's Restaurants Inc and D'Angelo Sandwich Shops chain. Contracts/Agreements Year: 1992 Frito-Lay and General Mills entered into an agreement to merge snack food businesses in Europe. New Products/Services
  • 59. Year: 1991 Frito-Lay introduced Sunchips, its first multigrain snack. Acquisitions/Mergers/Takeovers Year: 1991 PepsiCo acquired an equity interest in Wedel SA, the leading manufacturer of chocolate and confectioner. Corporate Changes/Expansions Year: 1991 Pepsi-Cola formed a joint venture with Unilever to develop and market iced/rtd tea drinks. Contracts/Agreements Year: 1990 PepsiCo signed the largest commercial trade agreement in history with the Soviet Union. Acquisitions/Mergers/Takeovers PepsiCo Inc History PepsiCo Inc © MarketLine
  • 60. Page 36 Year: 1990 PepsiCo acquired a controlling interest in Gamesa, largest cookie company in Mexico. Acquisitions/Mergers/Takeovers Year: 1989 PepsiCo acquired Walkers Crisps and Smith Crisps, UK based snack food companies. Acquisitions/Mergers/Takeovers Year: 1989 PepsiCo acquired Smartfood ready-to-eat popcorn business. Contracts/Agreements Year: 1988 Frito-Lay partnered with Hostess Foods in Canada. Stock Listings/IPO Year: 1986 PepsiCo was listed on the Tokyo stock exchange. New Products/Services Year: 1986
  • 61. Frito-Lay introduced Santitas brand restaurant style tortilla chips. Acquisitions/Mergers/Takeovers Year: 1986 Pepsi-Cola acquired Mug Root Beer. Acquisitions/Mergers/Takeovers Year: 1986 The company acquired Kentucky Fried Chicken, a prominent company in the quick service chicken PepsiCo Inc History PepsiCo Inc © MarketLine Page 37 market. Acquisitions/Mergers/Takeovers Year: 1986 PepsiCo acquired 7Up International, the third largest franchise soft drink operation outside the US. New Products/Services
  • 62. Year: 1985 The company added its first line of sweet snacks, Sonrics to its product line, in Mexico. New Products/Services Year: 1984 The company introduced soft drinks with fruit juice such as Slice and Diet Slice. New Products/Services Year: 1982 The company introduced Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas. Corporate Changes/Expansions Year: 1981 The company launched PepsiCo Food Systems (PFS), its restaurant supply company. New Products/Services Year: 1981 Frito-Lay introduced Tostitos brand crispy round tortilla chips. Corporate Changes/Expansions Year: 1980
  • 63. The company established PepsiCo Food Service International (PFSI). New Products/Services PepsiCo Inc History PepsiCo Inc © MarketLine Page 38 Year: 1979 The company introduced twelve-pack cans. Research and Development Year: 1979 The company started its PepsiCo Research and Technical Center in Valhalla, New York. Acquisitions/Mergers/Takeovers Year: 1978 The company acquired Taco Bell. Acquisitions/Mergers/Takeovers Year: 1977
  • 64. The company acquired Pizza Hut, Inc. New Products/Services Year: 1976 The company introduced Pepsi Light. Corporate Changes/Expansions Year: 1973 The company established Foods International, later called PepsiCo Foods International (PFI) and subsequently named Frito-Lay International, to market snack foods around the world. Contracts/Agreements Year: 1972 The company was given exclusive rights to import Stolichnaya Russian vodka in the US. New Products/Services Year: 1970 PepsiCo Inc History PepsiCo Inc © MarketLine
  • 65. Page 39 The company introduced the industry's first two-liter bottle. Acquisitions/Mergers/Takeovers Year: 1970 The company acquired Wilson Sporting Goods, a sports equipment company. New Products/Services Year: 1969 Frito-Lay, a sub-division of the company introduced Funyuns brand onion flavored snacks. Acquisitions/Mergers/Takeovers Year: 1968 The company acquired North American Van Lines (NAVL), a premier transportation company. Corporate Changes/Expansions Year: 1966 The company entered Japan and Eastern European market. New Products/Services Year: 1966
  • 66. The company introduced Doritos brand tortilla chips. Incorporation/Establishment Year: 1965 PepisCo Inc was established as a result of the merger of Pepsi- Cola and Frito-Lay. New Products/Services Year: 1964 The company formulated Diet Pepsi. PepsiCo Inc History PepsiCo Inc © MarketLine Page 40 Others Year: 1890 Pepsi-Cola was first created by Caleb Bradham, a pharmacist from New Bern, NY in the late 1890s. PepsiCo Inc Key Employees
  • 67. PepsiCo Inc © MarketLine Page 41 Key Employees KEY EMPLOYEES Name Job Title Board Hugh F. Johnston Chief Financial Officer, Executive Vice President, Vice Chairman Executive Board Indra K. Nooyi Chairman Executive Board Mehmood Khan Chief Scientific Officer-Global Research and Development, Executive Vice President, Vice Chairman Executive Board Alberto Weisser Director Non Executive Board Cesar Conde Director Non Executive Board Daniel Vasella Director Non Executive Board Darren Walker Director Non Executive Board David C. Page Director Non Executive Board Dina Dublon Director Non Executive Board George W. Buckley Director Non Executive Board Ian M. Cook Director Non Executive Board Richard W. Fisher Director Non Executive Board Robert C. Pohlad Director Non Executive Board Shona L. Brown Director Non Executive Board William R. Johnson Director Non Executive Board
  • 68. Albert P. Carey Chief Executive Officer-North America Senior Management Eugene Willemsen Executive Vice President-Global Categories & Franchise Management Senior Management Jon Banner Executive Vice President-Communications Senior Management Kirk Tanner President-North America Beverages, Chief Operating Officer- North America Beverages Senior Management Laxman Narasimhan Chief Executive Officer-Latin America and Europe Sub-Saharan Africa Senior Management Marie T. Gallagher Controller, Senior Vice President Senior Management Ramon Laguarta Chief Executive Officer Senior Management Sanjeev Chadha Chairman-Asia, Middle East and North Africa Senior Management Vivek Sankaran President-Frito-Lay North America and Chief Operating Officer-Frito-Lay North America Senior Management Brian Newman Executive Vice President-Finance and
  • 69. Operations, Latin America Senior Management Jim Andrew Executive Vice President-Corporate Senior Management PepsiCo Inc Key Employees PepsiCo Inc © MarketLine Page 42 Strategy , Chief Venturing Officer Umran Beba Global Chief Diversity and Engagement Officer, Senior Vice President-Talent Management Senior Management Jody Davids Chief Information Officer, Senior Vice President Senior Management Ruth Fattori Chief Human Resources Officer, Executive Vice President-Human Resources Senior Management Anne Fink President-Global Foodservice Senior Management
  • 70. Luis Montoya President- Latin America Beverages Senior Management Pedro Padierna Chairman-Mexico Senior Management Mike Spanos Chief Executive Officer-Asia, Middle East and North Africa Senior Management Grace Puma Whiteford Executive Vice President-Global Operations Senior Management David Yawman Executive Vice President-Government Affairs, General Counsel, Secretary Senior Management Paula Santilli President-PepsiCo Mexico Foods Senior Management Ram Krishnan President-Greater China Region Senior Management Silviu Popovici President-Europe Sub-Saharan Africa Senior Management Simon Lowden President-Global Snacks Group Senior Management PepsiCo Inc Key Employee Biographies PepsiCo Inc © MarketLine Page 43
  • 71. Key Employee Biographies KEY EMPLOYEE BIOGRAPHIES Hugh F. Johnston Board:Executive Board Job Title:Chief Financial Officer, Executive Vice President, Vice Chairman Since:2015 Age:56 Mr. Hugh F. Johnston has been the Chief Financial Officer, Executive Vice President and Vice Chairman of PepsiCo, Inc. since July 2015. Prior to this, he was Chief Financial Officer and Executive Vice President of the company from March 2010. He joined the company in 1987 and has held various senior management positions, including Chief Financial Officer of Beverages and Foods; Senior Vice President of Mergers and Acquisitions; President of Pepsi-Cola North America Beverages; and Executive Vice President of Global Operations. He also serves as Director of AOL, Inc. Previously, he served as Vice- Chairman and Director of the American Beverage Association and Director of Pepsi Bottling Group. Indra K. Nooyi Board:Executive Board Job Title:Chairman Since:2007 Age:62 Ms. Indra K. Nooyi has been the Chairman of the company
  • 72. since May 2007. Prior to this, she served as the Chief Executive Officer of the company from 2006 to 2018. She also served as the Director, President and Chief Financial Officer from May 2001- September 2006. Earlier, Ms. Nooyi served as the Senior Vice President and Chief Financial Officer from February 2000 to April 2001. She also served as PepsiCo's Senior Vice President, Corporate Strategy and Development from 1996 to February 2000, and as the Senior Vice President, Strategic Planning from 1994 to 1996. Prior to this, Ms. Nooyi worked for four years as the Senior Vice President of Strategy, Planning and Strategic Marketing for Asea Brown Boveri, Inc. She also served as the Vice President and a Director of Corporate Strategy and Planning at Motorola, Inc during 1986 -1990. Prior to this, she spent six years at The Boston Consulting Group. Mehmood Khan Board:Executive Board Job Title:Chief Scientific Officer-Global Research and Development, Executive Vice President, Vice Chairman Since:2015 Age:59 Mr. Mehmood Khan has been the Vice Chairman, Executive Vice President and Chief Scientific Officer of PepsiCo Inc Key Employee Biographies PepsiCo Inc
  • 73. © MarketLine Page 44 Global Research and Development of PepsiCo, Inc. since February 2015. Prior to this, he served as the Chief Executive Officer of the company’s Global Nutrition Group from November 2010 to May 2012. He also served as Chief Scientific Officer of the company from 2008 to May 2012. Prior to joining the company, Mr. Khan was President, Takeda Global Research & Development Center. Previously, he was a faculty member at the Mayo Clinic and Mayo Medical School, serving as Director of the Diabetes, Endocrine and Nutritional Trials Unit in the endocrinology division. He also worked for nine years leading programs in diabetes, endocrinology, metabolism and nutrition for the Hennepin County Medical Center in Minneapolis. Ramon Laguarta Board:Senior Management Job Title:Chief Executive Officer Since:2018 Age:54 Mr. Ramon Laguarta has been the Chief Executive Officer of the company since October 2018. Prior to this, he served as the President of the company. Previously, he served as the Chief Executive Officer of Europe Sub-Saharan Africa (ESSA) region of the company from 2015 to 2017. He also served in various other roles at the company, including Chief Executive Officer of PepsiCo Europe in 2015, President of Developing & Emerging Markets, PepsiCo Europe from 2012 to
  • 74. 2015, President of PepsiCo Eastern Europe Region from 2008 to 2012, and Commercial Vice President of PepsiCo Europe from 2006 to 2008. He also served as the General Manager for Iberia Snacks and Juices from 2002 to 2006 and General Manager for Greece Snacks and Marketing Vice President for Spain Snacks from 1999 to 2001. Jody Davids Board:Senior Management Job Title:Chief Information Officer, Senior Vice President Since:2016 Ms. Jody Davids has been the Senior Vice President and Chief Information Officer of the company since April 2016. Prior to this, she worked as Chief Information Officer of Agrium Inc. Ms. Davids has more than 30 years of experience in leading and developing technology functions for large organizations. Over the course of her career, she has worked with Best Buy, Cardinal Health, Nike, and Apple. Currently, she also serves on the board of Premier Inc. Ruth Fattori Board:Senior Management Job Title:Chief Human Resources Officer, Executive Vice President-Human Resources Since:2017 Age:65 Ms. Ruth Fattori has been an Executive Vice President, Human Resources and Chief Human Resources Officer of the company since October 2017. Previously, she served as the Senior Vice President, Talent
  • 75. PepsiCo Inc Key Employee Biographies PepsiCo Inc © MarketLine Page 45 Management, Training and Development from February 2013 to October 2017. Prior to joining the company, Ms. Fattori was Managing Partner of Pecksland Partners, LLC from 2009 to February 2013. She also served as Executive Vice President and Chief Administrative Officer for MetLife, Inc. from 2008 to 2009. Ms. Fattori served as Executive Vice President of Human Resources at Motorola, Inc. from 2004 to 2008. Prior to this, she held senior human resources positions at JPMorgan Chase & Co. and Siemens Corporation. PepsiCo Inc Major Products & Services PepsiCo Inc © MarketLine Page 46 Major Products & Services MAJOR PRODUCTS & SERVICES
  • 76. PepsiCo is a global food and beverage products manufacturer and distributor. The major products and brands offered by the company include the following: Products: Potato Chips Cheese Flavored Snacks Branded Dips Corn Chips Granola Bars Multigrain Snacks Cereals Rice Pasta and Other Branded Products Oatmeal Mixes and Syrups Grits Life Cereal Rice-A-Roni Pasta Roni Beverage Concentrates Fountain Syrups Rtd Iced-Tea and Coffee Drinks Packaged Water Carbonates Sports and Energy Drinks Juice and Nectars Still Drinks Brands: Alegro Amp Energy Aquafina
  • 77. Aquafina Flavorsplash Aunt Jemima Cap'n Crunch Cheetos Chester's Chipsy Chokis Chudo PepsiCo Inc Major Products & Services PepsiCo Inc © MarketLine Page 47 Cracker Jack Crunchy Diet Mist Twst Diet Mountain Dew Diet Mug Diet Pepsi Diet 7UP Domik v Derevne Doritos Duyvis Elma Chips Emperador Frito-Lay Fritos Fruktovy Sad Frustyle, Gamesa Gatorade
  • 78. G2 G Series Grandma's Izze Kurkure Lay's Life Lifewtr Lifewater Lubimy Manzanita Sol Marias Gamesa Matutano Mirinda Miss Vickie's Mother's Mountain Dew Mountain Dew Code Red Mountain Dew Kickstart Mug Munchies Naked Near East O.N.E. Paso de los Toros Pasta Roni Pepsi Pepsi Max Pepsi Next PepsiCo Inc Major Products & Services PepsiCo Inc
  • 79. © MarketLine Page 48 Pepsi Zero Sugar Pepsi One Propel Quaker Quaker Chewy Quakes Red Rock Deli Rice-A-Roni Rold Gold Rosquinhas Mabe Ruffles Sabritas Saladitas Sakata Sandora 7-Up and Diet 7-Up (outside the US) 7UP Free Santitas Sierra Mist Simba Smartfood Smith's Snack a Jacks SoBe SoBe Lifewater Sonric's Stacy's SunChips Toddy Toddynho Tostitos
  • 80. Trop 50 Tropicana Tropicana Pure Premium Tropicana Twister V Water Vesely Molochnik Walkers Ya PepsiCo Inc SWOT Analysis PepsiCo Inc © MarketLine Page 49 SWOT Analysis SWOT ANALYSIS PepsiCo Inc (PepsiCo) is a food and beverage company. Strong market position, focused R&D activities, reinvestment to generate strong financial results, and strong customer base are the company’s major strengths, even as, product recalls and allegations remain areas of concern. In the future, competitive pressures, volatile raw material prices, and obesity and water concerns could affect its business operations. However, growing global growth in soft drinks consumption, global savory snacks market, focus on refranchising internationally, and tax reform in the US are likely to provide growth opportunities to the company.
  • 81. Strength Market Position R&D Activities Reinvestment to Generate Strong Financial Results Connecting with Consumers Weakness Lawsuits Product Recalls Opportunity Global Soft Drinks Consumption Focus on Refranchising Global Savory Snacks Market Tax Reform in the US Threat Obesity and Water Concerns Competitive Pressures Volatile Raw Material Prices Strength Market Position The company enjoys a prominent market position that helps in attracting and serving a diverse customer base. PepsiCo is the second-largest food and beverage company in the world. It manufactures, markets and sells a range of convenient, enjoyable and wholesome foods and beverages. Its portfolio comprises
  • 82. oat, rice snacks and grain-based foods, carbonated and non- carbonated beverages. The company’s products are sold in more than 200 countries. PepsiCo has 25 brands generating retail sales of over US$1 billion annually. As of December 2017, the company held over 20% market share in the total US liquid refreshment beverage category. PepsiCo was the largest driver of growth for its food and beverage retail partners in the US in FY2017, contributing 19% of total food and beverage retail sales growth, which is more than the next 15 largest F&B manufacturers combined. R&D Activities Strong R&D activities improve the company’s competitiveness in the marketplace and also enhance its portfolio of offerings. PepsiCo is involved in several R&D activities to offer innovative products to its customers. Its activities comprise development of new ingredients and products; improvement and PepsiCo Inc SWOT Analysis PepsiCo Inc © MarketLine Page 50 modernization of manufacturing processes; reformulation and improvement in the quality and appeal of existing products; and improvements in product quality. It operates research centers in Brazil, China, India, Germany, Russia, Mexico, the U AE, the UK and the US.
  • 83. In FY2017, the company invested US$737 million on its R&D activities. The company introduced several products in beverage, food and snack portfolio during the review year. In FY2017, PepsiCo focused on refining beverage, food and snack portfolio to meet changing consumer demands by reducing added sugars in beverages and sodium and saturated fat in foods and snacks; developed a wide portfolio of product choices, including beverage options that contain no high-fructose corn syrup and that are made with natural flavors; expanded food and beverage healthy vending initiative to increase the availability of convenient, affordable and enjoyable nutrition, and further expanded portfolio of nutritious products. Reinvestment to Generate Strong Financial Results PepsiCo’s focus on refining its business model on reducing management layers and implementing technologies resulted in higher manufacturing throughput, reduction in logistics costs and increasing go- to-market efficiency and effectiveness. It resulted in annual productivity savings of US$1 billion equivalent to 10% of annual EBIT or 1.6% of total sales. It also helped in better utilizing the company’s resources and making investments to record financial growth. PepsiCo recorded total revenue of US$63,525 million in FY2017, a growth of 1.2% over the previous year. It delivered organic revenue growth of 2.3% in FY2017 compared to FY2016. During the review year, its core operating margin improved by 45 basis points. Its core constant currency earnings per share (EPS) improved by 9%, exceeding the 8% goal set at the beginning of FY2017. The company generated free cash flow of US$7.3 billion in FY2017, which exceeded the goal of US$7 billion set at the beginning of the
  • 84. review period. The core net return on invested capital (ROIC) improved by 140 basis points and stood at 22.9% at the end of FY2017. The company also achieved its target of returning US$6.5 billion in cash to shareholders in the form of dividends and share repurchases. Over the past five years, organic revenue grew at a CAGR of 4%, the core operating margin improved by 220 basis points, and constant currency annual EPS growth averaged 9%. Its operating margin stood at 16.5% in the review year and outperformed the beverages industry's operating margin average of 10% for the same year. The core net ROIC increased by over 750 basis points, whereas annualized dividend per share increased by 50% during the same period. Through dividends and share repurchases, the company returned US$38 billion to shareholders over the past five years. Connecting with Consumers PepsiCo’s products are used by consumers over one billion times a day in more than 200 countries. The company’s focus on managing customer relationships in retail and foodservice enabled it to create competitive advantage in the marketplace. Focus on strengthening its capabilities in (R&D, e-commerce, social and digital marketing helped it to connect with consumers. PepsiCo partners with retail customers through its e-commerce business to create a point of differentiation. In FY2017, its e-commerce business generated annual retail sales of US$1 billion. The company’s better control of its distribution systems help to develop an aligned system on snacks and beverages that serves the retailers well and reach higher number of consumers. The company leverages big data and
  • 85. predictive analytics to betters understand consumers’ requirements and design its campaign to deliver real-time marketing messages and tailored offers. The strength of its customer relationships enabled it to secure higher ranks in recent Kantar Retail PoweRanking survey, in which, the company’s retail partners named PepsiCo as the best-in-class PepsiCo Inc SWOT Analysis PepsiCo Inc © MarketLine Page 51 manufacturer. It also received the top ranking in several functional categories, including clear company strategy, most important consumer brands, growth and profitability, sales force and customer teams, insights and category management, supply chain management and use of digital platforms. Similarly, PepsiCo was highly ranked in service by advantage in markets outside the US, including major markets comprising China, Russia, the UK and Mexico. Weakness Lawsuits The company was involved in various law suits, affecting its brand image and cost structure. In October 2016, PepsiCo was sued in the federal court of New York by the Center for Science in the Public Interest
  • 86. (CSPI) on behalf of three shoppers over misleading advertisements. In the suit, the company was accused of providing wrong and fabricated information on the labels of Naked juices and smoothies. CSPI alleged that PepsiCo misleadingly markets Naked juices as predominantly containing high-value ingredients, but originally the main ingredient is often cheaper, less nutritious apple or orange juice. CSPI also claimed that PepsiCo embellishes No Sugar Added tag on Naked labels, whereas these products contain roughly as much sugar as in the company’s other carbonated soft drinks. Though PepsiCo denied these allegations but later (Feb 2017) it agreed to update the labels for its Naked Juice brand within eight months. In June 2016, PepsiCo reached a settlement in carcinogen class action lawsuit, where the company was accused of selling products containing chemical 4-Methylimidazole (4-MeI) that violates consumer protection law and common law in California. Product Recalls Frequent product recalls could increase the company’s operational costs. In July 2017, PepsiCo recalled two pack sizes of Doritos Chilli Heatwave over presence of milk that was not mentioned on the label that could potentially cause health risk for customers with an allergy or intolerance to milk or milk constituents. In January 2017, PepsiCo and the Food Standards Agency recalled few batches of Doritos lightly salted corn chips over presence of soya and wheat (gluten) that were not mentioned on the label. The recalled product could cause a possible health risk for individuals with an allergy or intolerance to wheat or gluten, and/or an allergy to soya. Though the product recalls portray the company’s focus towards safety,
  • 87. frequent recalls could have a negative impact on company’s reputation in the market. Opportunity Global Soft Drinks Consumption The company stands to benefit from the growing global demand for soft drinks. According to in-house research report, the global consumption of soft drinks in terms of value stood at US$841,600.2 million in 2016 and is expected to grow at a CAGR of 5.8% during 2016- 21 to reach US$1,113,926.6 million by 2021. Major factors driving the growth include growing global middle class population, increasing disposable income, rapid urbanization, improving buying power of customers’ worldwide, introduction of new flavors and changing customer needs. Usage of natural colors and sweeteners such as corn syrup, PepsiCo Inc SWOT Analysis PepsiCo Inc © MarketLine Page 52 aspartame and similar ingredients, apart from improvement of quality in manufacturing process of beverages also contribute to the growth of the industry by attracting health conscious people. Carbonates and packaged water are the largest segments of the global soft drinks market, accounting for 33.1% and
  • 88. 20.6% of the market's total value, respectively. Asia-Pacific accounts for about 32.9% of the total global soft drinks market value, followed by the US (28.9%), Europe (22.5%), the Middle East (1.7%) and the rest of the world (14.1%). PepsiCo stands to benefit from the growth as it markets products in more than 200 countries worldwide. The company took several initiatives to strengthen its beverages market. In February 2018, PepsiCo launched a new sparkling water, bubly, that combines refreshing and delicious flavors. In January 2018, the company's Mountain Dew introduced MTN DEW ICE, a crisp, clear, carbonated soft drink made with a splash of real juice. Focus on Refranchising PepsiCo repurposed its refranchising strategy, which focuses on extracting the productivity, driving the top line growth and also to check whether innovation sticks in the marketplace. In August 2017, Varun Beverages Ltd acquired PepsiCo India’s previously franchised territories in Odisha and parts of Madhya Pradesh along with three manufacturing units. PepsiCo signed an agreement with Varun Beverages to distribute its Tropicana juices, Gatorade sports drink and Quaker oats. During the review year, the company refranchised its beverage business in Jordan by selling a controlling interest in its bottling operations. PepsiCo recorded a pre-tax gain of US$140 million in selling, general and administrative expenses in AMENA segment. During the review year, the company entered into an agreement to refranchise its beverage business in Thailand by selling a controlling interest in its bottling operations.
  • 89. The transaction is expected to be completed in 2018. In FY2017, the company entered into an agreement to refranchise its entire beverage bottling operations and snack distribution operations in Czech Republic, Hungary, and Slovakia (CHS). The transaction is expected to be completed in 2018. Global Savory Snacks Market The growth in the global savory snacks market is likely to increase the company’s business in the future. Increasing population, higher per capita consumption, urbanization, growing middle class, improving technological standards, and increasing number of snacking occasions drive the savory snacks market worldwide. According to in-house research report, the global savory snacks market was valued at US$96,425.9 million in 2016, where processed snacks accounted for 36.4% of the total market value, followed by potato chips (25.8%), nuts and seeds (15.3%), ethnic or traditional snacks (11.6%), popcorn (4.9%), meat snacks (3.1%) and others (2.9%). The market is projected to grow at a CAGR of 6% during 2016-21 to reach US$129,158.5 million by the end of 2021. In terms of volume, the market is expected to grow at a CAGR of 3.2% during the period to reach 11,929.5 million kg by 2021. Increasing population in Asia-Pacific, coupled with a healthy economic outlook, presents a significant opportunity for the growth of the savory snacks market. PepsiCo's snacks business is handled by Frito-Lay North America (FLNA) division, which is one of the largest contributors in its total revenue. FLNA contributed 24.9% of the total sales and 41% of EBIT in FY2017. Its total revenue increased by 1.6% in FY2017 over the
  • 90. previous year. It achieved an organic revenue growth of 3% during the review year, which could be attributed to higher growth in variety packs, PepsiCo Inc SWOT Analysis PepsiCo Inc © MarketLine Page 53 Ruffles, Tostitos, Doritos and dips. FLNA has taken several initiatives to strengthen its portfolio and maintain its growth momentum. In January 2018, it introduced Doritos Blaze, a hot and spicy snack. In FY2017, FLNA launched Doritos Crunch Nuts and Doritos Crunch Mix Poppables, a light-textured potato snack in various flavors, including white cheddar and sea salt. Tax Reform in the US Impact of tax reform in the US is expected to give a fresh boost to the company’s business. The tax reform law is likely to allow business entities in the country for more flexibility in terms of managing resources, and particularly cash resources around the world and lower the cost of capital in the US. This new scenario could attract more investments on business in the country in coming years. In December 2017, the Government of the US passed The Tax Cuts and Jobs Act (Tax Reform Act). The new law slashed the corporate tax to a flat rate of 21%, a drastic fall from its previous maximum corporate tax rate
  • 91. of 35%. Furthermore, the new law eliminates the special corporate tax rate on personal service corporations (PSCs). It also lowers the 80% dividends received deduction (for dividends from 20% owned corporations) to 65% and the 70% dividends received deduction (for dividends from less than 20% owned corporations) to 50%. The new rate is effective from January 2018. The new law also repeals the alternative corporate tax on net capital gain. According to the Joint Committee on Taxation’s (JCT’s) estimates, the new law reflects a net tax cut of approximately US$1.456 trillion over the ten-year budget window. The reform is likely to enhance profitability of companies such as PepsiCo, which expects 9% increase in its core earnings per share in 2018 compared to 2017 due to the lower tax rate. Threat Obesity and Water Concerns Health consequences resulting from obesity, and water scarcity are primary areas of concern for beverage companies. Researchers, health advocates and dietary guidelines have advocated a reduction in consumption of sweetened beverages in order to avoid obesity. Various governments plan to increase taxes on sugar-sweetened beverages to reduce consumption of such beverages and increase revenue. For instance, the Sugar-Sweetened Beverages Tax (SWEET) Act, institutes a tax of one cent per teaspoon of caloric sweetener such as sugar or high-fructose corn syrup. Increased consumer awareness towards obesity and probable new or increased taxes on sugar- sweetened beverages by governments could reduce the company’s product sales. To overcome from
  • 92. the above concerns, in March 2017, the company introduced Pepsi Max Ginger, a new sugar-free addition to the Max line-up. In the same month, PepsiCo introduced low-calorie Lemon Lemon and IZZE Fusions. Moreover, increased water scarcity and availability of quality water is deteriorating day by day. Water being a major ingredient for beverage manufacturers, increasing demand could result in higher production costs in coming years. Competitive Pressures PepsiCo and Coca-Cola are the two big soft drink giants that battle fiercely over the consumer attention and attachment. As they are present across most categories, the two adversaries have been very active in marketing. PepsiCo and The Coca-Cola Company represent over 40% of the US liquid refreshment beverage category. Apart from Coca-Cola, PepsiCo also competes with international beverage, food and PepsiCo Inc SWOT Analysis PepsiCo Inc © MarketLine Page 54 snack companies operating in multiple geographies such as Nestle S.A., Kellogg Company, DPSG, International, Inc., Kraft Foods Group, Inc., Monster Beverage Corporation, Red Bull GmbH, and Snyder’s-Lance, Inc.
  • 93. Volatile Raw Material Prices The company’s performance is sensitive to raw material price movements. According to the Food and Agriculture Organization of the United Nations’ (FAO), Food Price Index averaged 174.6 points in 2017 as compared to 161.5 points in 2016, up 8.2%. Its Cereal Price Index averaged 151.6 points in 2017 as compared to 146.9 points in 2016, up 3.2%. Similarly, Dairy Price Index averaged 202.2 points in 2017 in comparison with 153.8 points in 2016, up 31.5%. The continuous supply of raw materials could be affected by adverse weather conditions, national emergencies, strikes, governmental controls, natural disasters, supply shortages or any other unexpected events. PepsiCo uses various agriculture related products in the production of carbonated and non-carbonated beverages. It also uses aspartame, cocoa, corn, corn sweeteners, flavorings, flour, grapefruits and other fruits, juice and juice concentrates oats, oranges, potatoes, rice, seasonings, sucralose, sugar, vegetable and essential oils, and wheat. Fluctuations in the prices of raw materials could increase product costs and affect the operations of the company. PepsiCo Inc Top Competitors PepsiCo Inc © MarketLine Page 55
  • 94. Top Competitors TOP COMPETITORS The following companies are the major competitors of PepsiCo Inc Danone SA Dr Pepper Snapple Group Inc Kellogg Co Mondelez International Inc Monster Beverage Corporation Nestle SA Red Bull GmbH Snyder’s-Lance, Inc. Suntory Holdings Ltd The Coca-Cola Co The Kraft Heinz Co PepsiCo Inc Company View PepsiCo Inc © MarketLine Page 56 Company View COMPANY VIEW A statement from Management’s Discussion and Analysis of Financial Condition and Results of
  • 95. Operations of PepsiCo Inc is given below. The statement has taken from the company’s 2017 10-K report. Executive Overview We are a leading global food and beverage company with a complementary portfolio of enjoyable brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. Through our operations, authorized bottlers, contract manufacturers and other third parties, we make, market, distribute and sell a wide variety of convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than 200 countries and territories. At PepsiCo, we are focused on operating our company in a way that generates sustained financial growth and consistently strong returns and is also responsive to the needs of the world around us. We call this approach Performance with Purpose — it is embedded into our business and our strategy — and it enabled us to deliver another year of strong performance in 2017. As we look to 2018 and beyond, we believe our Performance with Purpose strategy will enable us to continue delivering strong performance while positioning our Company for long-term sustainable growth. Our strategies are designed to address key challenges facing our Company, including: macroeconomic and political volatility and the continued rebalancing of the economic world; shifting consumer preferences and increasing demand for more nutritious foods and beverages; the disruption of retail; the expansion of hard discounters; and the emergence of niche brands laying claim to large consumer segments, particularly in developed markets. We intend to focus on the
  • 96. following areas to address and adapt to these challenges: •Utilizing the strength of our distribution system to offer consumers a wide array of choices, from “fun-for- you” to “better-for-you” to “good-for-you” products to meet consumers’ demand for more nutritious foods and beverages; •Continuing to strengthen our retail and foodservice relationships to sell our products faster, increase cash flow and engage consumers; •Minimizing our environmental footprint to streamline costs and mitigate our operational impact on the communities in which we operate; •Continuing to invest in our associates so that we have the best talent to position our company for continued growth; and •Continuing our investments in e-commerce and digital solutions to meet changing consumer consumption patterns and capture cost savings while streamlining our operations. Results of Operations — Consolidated Review In the discussions of net revenue and operating profit below, “effective net pricing” reflects the year-over- year impact of discrete pricing actions, sales incentive activities and mix resulting from selling varying PepsiCo Inc Company View
  • 97. PepsiCo Inc © MarketLine Page 57 products in different package sizes and in different countries and “net pricing” reflects the year-over-year combined impact of list price changes, weight changes per package, discounts and allowances. Additionally, “acquisitions and divestitures,” except as otherwise noted, reflect all mergers and acquisitions activity, including the impact of acquisitions, divestitures and changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees. The impact of the structural change related to the deconsolidation of our Venezuelan businesses is presented separately. Volume Our beverage volume in the NAB, Latin America, ESSA and AMENA segments reflects sales to authorized bottlers, independent distributors and retailers, as well as the sale of beverages bearing Company-owned or licensed trademarks that have been sold through our authorized independent bottlers. Bottler case sales (BCS) and concentrate shipments and equivalents (CSE) are not necessarily equal during any given period due to seasonality, timing of product launches, product mix, bottler inventory practices and other factors. While our beverage revenues are not entirely based on BCS volume, as there are independent bottlers in the supply chain, we believe that BCS is a valuable measure as it quantifies the sell-through of our beverage products at the consumer level. Sales of products from our unconsolidated joint ventures are reflected in our reported
  • 98. volume. NAB, Latin America, ESSA and AMENA, either independently or in conjunction with third parties, make, market, distribute and sell ready- to-drink tea products through a joint venture with Unilever (under the Lipton brand name), and NAB further, either independently or in conjunction with third parties, makes, markets, distributes and sells ready-to-drink coffee products through a joint venture with Starbucks. In addition, AMENA licenses the Tropicana brand for use in China on co-branded juice products in connection with a strategic alliance with Tingyi. Our food and snacks volume in the FLNA, QFNA, Latin America, ESSA and AMENA segments is reported on a system-wide basis, which includes our own sales and the sales by our noncontrolled affiliates of snacks bearing Company-owned or licensed trademarks. Servings Since our divisions each use different measures of physical unit volume (i.e., kilos, gallons, pounds and case sales), a common servings metric is necessary to reflect our consolidated physical unit volume. Our divisions’ physical volume measures are converted into servings based on U.S. Food and Drug Administration guidelines for single-serving sizes of our products. In 2017, total servings decreased 1% compared to 2016. In 2016, total servings increased 3% compared to 2015. Excluding the impact of the 53rd reporting week in 2016, total servings in 2017 was even with the prior year and total servings in 2016 increased 2% compared to 2015. Servings growth reflects adjustments to the prior year results for divestitures and other structural changes, including the deconsolidation of our Venezuelan businesses effective as of
  • 99. the end of the third quarter of 2015. 2017 Operating profit increased 7% and operating margin improved 1.0 percentage points. Operating profit growth was driven by the benefit of actions associated with our productivity initiatives, which contributed more than $1 billion in cost reductions across a number of expense categories, as well as effective net pricing. Items affecting comparability (see “Items Affecting Comparability”) also contributed 4 percentage points to operating profit growth and increased operating profit margin by 0.5 percentage points, primarily reflecting a prior-year impairment charge to reduce the value of our 5% indirect equity interest in TAB to its estimated fair value. Additionally, the impact of refranchising our beverage business in Jordan and a gain associated with the sale of our minority stake in Britvic each contributed 1 percentage point to operating profit growth. These impact------ WebKitFormBoundarya67yaUoSp9Z9phvo PepsiCo Inc Company View PepsiCo Inc © MarketLine Page 58 Content-Disposition: form-data; name="editForm.CompanyDetails.CompanyId" 1320358
  • 100. PepsiCo Inc Locations And Subsidiaries PepsiCo Inc © MarketLine Page 59 Locations And Subsidiaries LOCATIONS AND SUBSIDIARIES Head Office PepsiCo Inc 700 Anderson Hill Road Purchase New York Purchase New York USA Phone:1 914 2532000 Fax:1 914 2532070 www.pepsico.com Other Locations and Subsidiaries Alimentos Quaker Oats y Compania Limitada Calzada San Juan GTM Alimesa S.A. Loza Napoleon
  • 101. La Rioja La Rioja ARG Anderson Hill Insurance Limited 19 Reid Street Hamilton Hamilton BMU Aquafina Inversiones, S.L. ESP Aradhana Drinks and Beverages Private Limited Panchkula Chandigarh Panchkula Chandigarh IND BAESA Capital Corporation Ltd. CYM Beech Limited CYM Bishkeksut, OJSC KGZ Bolsherechensk Molkombinat, JSC RUS Boquitas Fiestas S.R.L. HND Canguro Rojo Inversiones, S.L.
  • 102. ESP China Concentrate Holdings (Hong Kong) Limited HKG Chipsy International For Food Industries Co.S.A.E EGY Cipa Nordeste Industrial de Produtos Alimentares Ltda. BRA Compania De Bebidas Pepsico, S.L. Frito-Lay North America, Inc. PepsiCo Inc Locations And Subsidiaries PepsiCo Inc © MarketLine Page 60 Av Los Olmos, 2 Zona Ind. Gamarra Vitoria-Gasteiz Alava Vitoria-Gasteiz Alava ESP Phone:34 91 3829300 Fax:34 91 3829310 www.pepsi.es/www.pepsico.es
  • 103. 7701 Legacy Drive Plano Texas Plano Texas USA Phone:1 800 3524477 www.fritolay.com Grupo Gepp, SAPI de CV 4th floor Avenue Santa Fe No. 485 Col. Cruz Manca Santa Fe Mexico Santa Fe Mexico MEX Phone:52 55 52494700 gepp.com.mx Health Warrior, Inc. 4820 Old Main Street Unit 102 Richmond Virginia Richmond Virginia USA Lebedyansky, LLC 9 Zemlyanoy Val str. business center “Citydel” Moscow Moscow RUS
  • 104. Phone:7 495 933 62 50 Naked Juice Co. of Glendora, Inc. 935 W. 8Th St. Azusa California Azusa California USA Phone:1 626 812 Fax:1 626 334 www.nakedjuice.com Pepsi Bottling Holdings, Inc. Delaware Delaware USA Pepsi Cola Trading Ireland 30 Herbert Street Dublin Dublin IRL Pepsi Croatia 1 Dimitrie Cantemir Blvd Bucharest Bucharest ROM Phone:40 21 3172800 Fax:40 21 3172802 Pepsi Hungary Helsinki ut 121-123, Budapest Budapest
  • 105. HUN Phone:36 1 4671515 Fax:36 1 1636464 www.pepsi.hu PepsiCo Alimentos de Ecuador PepsiCo Americas Beverages PepsiCo Inc Locations And Subsidiaries PepsiCo Inc © MarketLine Page 61 Av. Juan de Selis y Tadeo Bénitez Esq Quito Quito ECU Phone:593 421 11278 ec.pepsimundo.com 700 Anderson Hill Road, Purchase New York Purchase New York USA Phone:1 914 2532000 Fax:1 914 2532229 www.pepsico.com PepsiCo Australia Holdings Pty Ltd. 799 Pacific Hwy
  • 106. Chatswood New South Wales Chatswood New South Wales AUS Phone:61 29 9511799 www.pepsico.com.au PepsiCo BeLux BVBA Da Vincilaan 3 Zaventem Brabant Flamand Zaventem Brabant Flamand BEL Phone:32 27 140540 Fax:32 27 140541 www.pepsico.be PepsiCo Beverages International Limited C/o 7-Up Bottling Company 247 Moshood Abiola Way Ijora Lagos Lagos NGA Phone:234 1 5871686 Fax:234 1 5877146 www.pepsico.com Pepsico Beverages Italia S.R.L. Via Tiziano, 32 Milano Lombardia Milano Lombardia
  • 107. ITA Phone:39 2 434381 Fax:39 2 43438200 www.pepsi.it PepsiCo Beverages Switzerland GmbH Genfergasse 4, Bern Bern CHE Phone:41 33 47000 Fax:41 33 47001 www.pepsi.ch PepsiCo Bosnia and Herzegovina 1 Dimitrie Cantemir Blvd, Bucharest 4, Bucharest Bucharest ROM Phone:40 213 172800 Fax:40 213 172802 PepsiCo Bulgaria Pepsi-Cola GmbH Linke Wienzeile Vienna Vienna Vienna Vienna AUT PepsiCo Chile Avenida Kennedy 5454 Floor 4 Las Condes Santiago
  • 108. Santiago Santiago Santiago PepsiCo Inc Locations And Subsidiaries PepsiCo Inc © MarketLine Page 62 Phone:43 189 49120 Fax:43 189 41980 www.pepsi.com CHL www.pepsico.cl PepsiCo CZ s.r.o. Kolbenova 50/510 Praha 9 - Vysocany Prague Vysocina Prague Vysocina CZE Phone:420 266 191200 Fax:420 266 191258 www.pepsico.cz PepsiCo de Argentina S.R.L. 12 de Octubre y Gran Cañarias
  • 109. Buenos Aires Buenos Aires ARG Phone:54 6778 2200 Fax:54 6778 2234 PepsiCo Deutschland GmbH Hugenottenallee 173 Neu-Isenburg Neu-Isenburg DEU Phone:49 61 027490 Fax:49 61 02749200 www.pepsico.de PepsiCo do Brasil Ltda. Street Renato Paes de Barros 1017 - 7th floor Moema Sao Paulo - SP - CEP 04530-001 Sao Paulo Sao Paulo Sao Paulo Sao Paulo BRA Phone:55 11 38485000 www.pepsico.com.br PepsiCo Europe 63 Kew Road Richmond Surrey Richmond Surrey GBR Phone:44 208 3324000 Fax:44 208 3324042
  • 110. www.pepsico.eu PepsiCo Europe, Czech Republic Kolbenova 50/510 Vysocany Prague Prague CZE Phone:420 2 66191200 Fax:420 2 66191258 PepsiCo France SNC 420, rue d'Estienne d'Orves Colombes Cedex Paris Ile-de-France Paris Ile-de-France FRA Phone:33 1 55699000 Pepsico Holdings Building 1, Territory of the Free Economic Zone, Sherrizon Solnechnogorsk Moscow Moscow Moscow Moscow RUS PepsiCo Inc Locations And Subsidiaries
  • 111. PepsiCo Inc © MarketLine Page 63 www.pepsico.fr Phone:7 495 9370550 www.pepsico.ru PepsiCo Inc 1 Pepsi Way Somers New York Somers New York USA Phone:1 914 7676000 www.PepsiCoBeverageFacts.com PepsiCo Inc Emaar Square, Sheikh Zayed Rd. Emaar Bldg #2, Level 3 PO Box 11330 Dubai Dubai ARE Phone:971 4 4253700 PepsiCo Inc P.O. Box 049003 Chicago Illinois Chicago Illinois USA Phone:1 800 3676287 www.quakeroats.com
  • 112. PepsiCo Inc P.O. Box 660634 Dallas Texas Dallas Texas USA Phone:1 800 3524477 www.fritolay.com PepsiCo Inc Rue du Rhône 50 Geneva Geneva CHE Phone:41 914 2532000 www.pepsico.eu Pepsico Inc Sucursal De Peru SA Cal. Esquilache Nro. 371 int. 15 Esquil Empresarial Business Center San Isidro Lima Lima Lima Lima PER Phone:51 1 7117111 www.pepsico.com PepsiCo India Holdings Pvt Ltd Level 3-6 Pioneer Square, Sector 62, Near Golf Course Extension Road Gurgaon
  • 113. Haryana Gurgaon Haryana IND Phone:91 124 2880699 www.pepsicoindia.co.in PepsiCo Internacional Mexico S. de R.L. de C. V. MEX PepsiCo International 700 Anderson Hill Road Purchase PepsiCo International Pte Ltd. 99 Bukit Timah Road Central Orchard PepsiCo Inc Locations And Subsidiaries PepsiCo Inc © MarketLine Page 64 New York Purchase New York USA Phone:1 914 2532552 www.pepsico.com Singapore City
  • 114. Singapore City SGP Phone:65 63 386496 Fax:65 63 386596 PepsiCo Investment (China) Ltd. 1106/1107, 11th Floor SK Tower (Capital Tower) No.6 JIA Jianguomenwai Avenue Beijing Beijing Beijing Beijing CHN Phone:86 10 65630086 Fax:86 10 65630215 www.pepsico.com.cn PepsiCo Malaysia Sdn Bhd 15th Floor, West Wing Wisma Consplant 2 2, 7 Jalan SS16/1 Selangor, Darul Ehsan Subang Jaya Subang Jaya MYS Phone:60 3 56378000 Fax:60 3 56368000 www.pepsimalaysia.com PepsiCo Nederland B.V. Zonnebaan 35 Utrecht Utrecht NLD Phone:31 30 2473811/811 030-2473 Fax:31 30 2473650/650 030-2473
  • 115. www.pepsico.nl PepsiCo Nordic Denmark A/S Vesterbrogade 149, 1, DK-1620 Kobenhavn Kobenhavn DNK Phone:45 7070 2888 Fax:45 3262 3041 www.pepsi.dk PepsiCo Nordic Finland Oy Atomitie 2a Helsinki Helsinki ALA Phone:358 9 682450 Fax:358 9 68244552 www.pepsi.fi PepsiCo Nordic Norway AS Lilleakerveien 4 Oslo Oslo Oslo Oslo NOR Phone:47 22 132500 Fax:47 22 132501 www.pepsi.no PepsiCo Philippines National Road Km29, Tunasan Muntinlupa Manila Muntinlupa
  • 116. Manila PHL Phone:63 8507901 www.pepsiphilippines.com PepsiCo Republic of Ireland Little Island Industrial Estate, Little Island Cork Cork Cork Cork IRL Phone:353 1 214523100 Fax:353 1 4353926 PepsiCo Inc Locations And Subsidiaries PepsiCo Inc © MarketLine Page 65 www.pepsico.ie PepsiCo Romania Sun Offices 391 Calea Vacaresti, 4th Floor Section 1, Sector 4 Bucharest Bucharest ROM Phone:40 372 377100 Fax:40 213 373272 www.pepsico.ro
  • 117. PepsiCo Sweden Lilleakerveien 4 Oslo Oslo NOR Phone:47 2 2132500 Fax:47 2 2132501 www.pepsi.com/sv-se/d PepsiCo Turkey Tekfen Tower Eski Buyukdere Caddesi No 209 Block D: 3 4 Levent Istanbul Istanbul-I (Thrace) Istanbul Istanbul-I (Thrace) TUR Phone:90 212 3193000 Fax:90 212 3570180 www.pepsi.com.tr PepsiCo Ukraine Promyslova St, 7 Vyshneve Kiev Kiev Kiev Kiev UKR Phone:380 44 4905260 pepsico.ua PepsiCo-IVI S.A. 19th km Athinon
  • 118. Lamias Ave Nea Erythraia Nea Erythraia GRC Phone:30 210 6699000 Fax:30 210 6646058 www.pepsico-ivi.gr Pepsi-Cola (Thai) Trading Co., Ltd. Emporium Tower 16Th and 17Th Floor 622 Sukhumvit Road Khlong Ton Bangkok Bangkok (Krung Thep Maha Nakhon) Bangkok Bangkok (Krung Thep Maha Nakhon) THA Phone:66 2 6894600 Fax:66 2 6647265 www.pepsico.co.th Pepsi-Cola Far East Trade Development Co., Inc. Pcppi Compound Km 29 National Road Tunasan Muntinlupa Laguna Muntinlupa Laguna PHL Phone:63 49 8451842 Pepsi-Cola General Bottlers Poland SP zoo ul. Zamoyskiego 24-26 Warsaw Greater Poland Warsaw Greater Poland
  • 119. POL Phone:48 22 6707070 Fax:48 22 6707261 www.pepsicopoland.com PepsiCo Inc Locations And Subsidiaries PepsiCo Inc © MarketLine Page 66 Pepsi-Cola International Deutschland Hugenottenallee 173 Neu-Isenburg Hessen Neu-Isenburg Hessen DEU Phone:49 610 27490 Fax:49 610 2749200 www.pepsi.at Pepsi-Cola International Kazakhstan Manas str, 32, SAT business center, Almaty Almaty KAZ Phone:7 727 2324542 www.pepsi.kz Pepsi-Cola International Serbia
  • 120. 17-19, Felix Street, Bucharest 1 Bucharest Bucharest ROM Phone:40 21 3172800 Fax:40 21 3172802 Pepsi-Cola Panamericana SA-Colombia Avenida de las Americas 53-09 Bogota Bogota COL Phone:57 1405 3002 Fax:57 1405 6375 Pepsi-Cola Panamericana, S.A. Av. 4, Edificio Ctro Empresarial Polar Urbanización Los Cortijos de Lourdes Caracas Distrito Capital Caracas Distrito Capital VEN Phone:58 2 2036411 www.empresaspolar.com Pepsi-Cola Portugal LDA Lagoas Park Edificio 5C, 5 Porto Salvo Oeiras Lisboa Oeiras Lisboa PRT Phone:351 21 4147100
  • 121. Fax:351 21 4144754 www.pepsi.pt Pepsi-Cola SR sro Seldom Nadrazna 534 Malacky Bratislava Malacky Bratislava SVK Phone:421 347 963110 www.pepsico.sk Sakata Rice Snacks Australia Pty Ltd Level 8 Tower A, 799 Pacific Highway Chatswood Sydney New South Wales Sydney New South Wales AUS Phone:61 1800 025789 www.sakata.com.au The Quaker Oats Company P.O. Box 049003 Chicago Illinois Chicago The Smith'S Snackfood Company Ltd Level 8 799 Pacific Highway Chatswood New South Wales
  • 122. PepsiCo Inc Locations And Subsidiaries PepsiCo Inc © MarketLine Page 67 Illinois USA Phone:1 312 8211000 www.quakeroats.com Chatswood New South Wales AUS Phone:61 2 99511799 Fax:61 2 99511797 www.smiths.com.au Tropicana Europe N.V. Imperiastraat 6 Zaventem Brabant Flamand Zaventem Brabant Flamand BEL Phone:32 27 140540 Fax:32 27 140541 www.tropicana.be Tropicana Products Inc P.O. Box 049003
  • 123. Chicago Illinois Chicago Illinois USA www.tropicana.com Tropicana UK Ltd 450 South Oak Way, Green Park Reading Berkshire Reading Berkshire GBR www.tropicana.co.uk Veurne Snack Foods BVBA Imperiastraat 6 Zaventem Brabant Flamand Zaventem Brabant Flamand BEL Phone:32 2 7140540 Fax:32 2 7140541 Walkers Snack Foods Ltd Freepost Le4 918 Leicester Leicestershire Leicester Leicestershire GBR www.walkers.co.uk Wimm-Bill-Dann Foods OJSC
  • 124. Dmitrovskoye Highway Moscow Moscow RUS Phone:7 495 9255805 Fax:7 495 9255800 www.wbd.ru A Progressive Digital Media business John Carpenter House, John Carpenter Street, London, United Kingdom, EC4Y 0AN T: +44 (0) 203 377 3042 | F: +44 (0) 870 134 4371 | E: [email protected] | W: www.marketline.com Company Overview Key Facts Business Description History Key Employees Key Employee Biographies Major Products & Services SWOT Analysis Top Competitors Company View Locations And Subsidiaries BR N S BRE AK T HR U 2 17 64 fortune.com // jan.01.17 1 . I N S T E A D O F F I X AT I N G O N T H E O F T E N N E B U L O U S “ B R A N D ,” think of how you can “own a category” in the minds of 1,000 die-hard fans who can then act as your strongest marketing force. If you can’t be No. 1 or No. 2
  • 125. in a category (“Uber for X,” imported light beer, low-cost airline, whatever), find or create another category. M Y S A C R E D R U L E S O F B R A N D I N G T I M F E R R I S S , EARLY-STAGE INVESTOR (UBER, FACEBOOK, TWITTER, ALIBABA, ETC.) AND AUTHOR OF THE NO. 1 NEW YORK TIMES BESTSELLER TOOLS OF TITANS: THE TACTICS, ROUTINES, AND HABITS OF BILLIONAIRES, ICONS, AND WORLD-CLASS PERFORMERS. A I R B N B I N S T A G R A M S L A C K S N A P C H A T S P O T I F Y F E R R IS S : A N D R
  • 126. E W K E L L Y BRE AK T HR U H 65 fortune.com // jan.01.17 W H AT D O E S I T TA K E F O R A B R A N D to truly break through in today’s crowded market? Just as it has with everything else, digital transformation has upended the traditional rules of marketing. In less than a decade brands like Uber and Airbnb have attained the kind of consumer mindshare that com- panies used to have to work decades to create. Part of this is the simple fact that most of these newer brands are technology companies; they provide products and services that themselves can be built almost overnight, thanks to the proliferation of smartphones, cloud computing, and fast, free, and universally accessible digital tools. But many of these brands are also resonating on a deeper level with consumers. We wanted to get to the bottom of which companies best exemplified this—those brands that have attained the emotional reso- nance with consumers typically reserved for big
  • 127. blue-chip companies, but in a fraction of the time. So we surveyed 4,000 consumers and asked them to name the brands that meant the most to them, both overall and across a variety of industries. We then sorted the list by industry, category, and age to come up with our list of 10 “Breakthrough Brands”—companies that, when measured on the basis of how they resonate with consumers, sit side by side with Apple, Coca-Cola, Disney, and other mature brands despite being relative babes. The 10 names here are new and white-hot; they are all tech companies; and they have all “broken through” to claim space among the giants. All but two of them are less than a decade old. We’ve also shared some other key findings from our survey, like the brands that received the most men- tions overall—those that may have broken through decades ago but still register highly in consumers’ minds. On that list, Apple trounced everyone else. But it’s the breakthrough brands of today that we find most compelling. These are the ones that are best positioned to become the Apples of tomorrow. 2 . D O N ’ T M A K E A P R O D U C T F O R “ E V E R Y O N E .” If everyone is your market, no one is your market. Particularly with the first versions of your product or service, it’s better to have 1,000 people who love you (and many who hate you) than 100,000 who think you’re kinda, sorta cool. “Great” to 1,000 edge-case nerds beats “good” to 100,000 of anything else, every time. In a social-sharing- driven world, cultivate the intense few instead of the lukewarm many.
  • 128. 3 . F O R G E T B R A N D I N G . Think about consis- tently over-delivering one or two benefits to your customers/users/fans. Branding is a side effect of consistent association. Don’t put the cart before the horse. Put good business first, and good “brand” will follow. S Q U A R E T E S L A U B E R V E N M O W A Z E S U R V E Y S C O N D U C T E D B Y M O R N I N G C O N S U LT A N D T I M E I N C . A I R B N B I N S T A G R A M S L A C K 66 fortune.com // jan.01.17 WORKPLACE CHAT SERVICE Slack was an accidental success. Originally developed as an internal tool, the company—then named Tiny Speck—took a big bet on launching it to the outside world in 2013 after its original product, a videogame named Glitch, wasn’t paying off. Slack wasn’t the first app for chatting with coworkers—HipChat, Yam- mer, and others came before it—but it had a quirky design and slick user interface, and perhaps
  • 129. most critically, it came at just the right time: taking the tech industry by storm as it spread among the then-exploding number of new Silicon Valley startups. Today the service has more than 4 million daily active users—1.25 million of them paying—and Slack’s colorful plaid logo has become an icon in Silicon Valley. —Kia Kokalitcheva CANDID PHOTOS OF FRIENDS with a vintage patina, vistas with vivid hues, close-ups of fancy cocktails—Instagram’s 2010 de- but made everyone seem like a shutterbug—and everyone could be, thanks to the app that brought professional-grade photo tools to the iPhone-holding masses. But Facebook’s billion-dollar acquisition of the fast-growing photo app in 2012 accelerated everything. Then Instagram had 30 million users; today it has more than 500 million. What started as a faddish distrac- tion developed into a full-blown social network. Once a serious threat to Facebook, Instagram is now a critical pillar (alongside WhatsApp, Oculus VR, and the company’s namesake service) of its $25 billion business. And you can still use it to take a great
  • 130. photo. —Andrew Nusca A P AY M E N T S A P P or a messaging service is one thing. Opening up peoples’ homes to let strangers stay in them? Well, that’s just crazy. That’s what lots of smart people thought back in 2008 when Airbnb’s founders were trying to get their startup off the ground. Some 140 million “guest arrivals” later, it has reimagined travel, building an online platform for home-based accommodations with lush, inviting photography, an easy in- terface, and appealing prices, all wrapped in the cozy image of “belonging.” This company has its challenges, like discrimina- tory behavior by its users and pushback from regulators—but breaking through has not been one of them. —Leigh Gallagher APPLE 1,229 GOOGLE 346 WALMART 396 AS PART OF OUR METHODOLOGY, we asked respondents to name one company in any category that best exemplified a breakthrough brand. Apple topped the list—and got more than three times the mentions
  • 131. of the runner-up, Walmart. Here are the top 15. T H E A L L - S T A R B R A N D S FOUNDED: 2008 HEADQUARTERS: SAN FRANCISCO FOUNDED: 2010 HQ: MENLO PARK, CALIF. FOUNDED: 2009 HQ: SAN FRANCISCO B R E A K T H R O U G H B R A N D S 2 0 1 7 S P O T I F Y S N A P C H A T S Q U A R E 67 fortune.com // jan.01.17 PLENTY OF PARENTS are still thor- oughly confused by the mobile ephemeral-messaging app, but that doesn’t matter to Snap- chat, which has achieved the holiest of holy grails: capturing the fickle hearts—and precious time—of teenagers and young adults the world over. It now has 150 million daily active users,
  • 132. numbers that have prompted attempts by Facebook and Instagram to copy some of Snapchat’s most popular fea- tures. The ambitions of parent company Snap have grown in lockstep with Snapchat’s scale as it moves beyond mobile apps for sending photos and reading bite-size news from media giants like ESPN and People: In the fall, Snap unveiled its first pair of video- recording sunglasses, called Spectacles. —Kia Kokalitcheva JACK DORSEY’S other company, Twitter, gets all the attention— good and bad. But Dorsey also runs Square, the com- pany whose little white dongles changed small business forever. The idea was simple enough: Give away small credit card readers that connect to mobile phones and tablets and charge the same rate for each transac- tion, regardless of the type of card. Square was the first to make that easy, and along with its user-friendly accounting services, it fast became a tool of economic empowerment for tutors, dog walkers, and shingle hangers of all stripes. Dorsey may or may not remain