PEPSICO COMPANY PRESENTATION

PEPSICO is a multinational manufacturer of beverage&corn chips, potato chips and other

snack foods.``
CONTENTS
History
Mission and Vision
Values and Philosophy
Origins
Acquisitions and divestments
Restructuring
Competition
Products and brands
Areas of business
PEPSICO HISTORY
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United
States, with interests in the manufacturing, marketing and distribution of grain-based snack foods,
beverages, and other products. PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief
Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay,
through the merger of the two companies. PepsiCo was formed in 1965 with the merger of the Pepsi-
Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a
broader range of food and beverage brands, the largest of which include an acquisition of Tropicana
in 1998 and a merger with Quaker Oats in 2001 which added the Gatorade brand to its portfolio as
well.
As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the
companys products were distributed across more than 200 countries, resulting in annual net
revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage
business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food
and beverage business.
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company
employed approximately 285,000 people worldwide as of 2010. The companys beverage distribution
and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC
2080 (beverage) company.

PEPSICO MISSION AND VISION
Our Mission
Our mission is to be the world's premier consumer products company focused on convenient
foods and beverages. We seek to produce financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive for honesty, fairness
and integrity.

Our Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate - environment, social, economic - creating a better tomorrow than today."
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable company.

PEPSICO VALUES & PHILOSOPHY
`` Our Values & Philosophy are a reflection of the socially and environmentally
responsible company we aspire to be. They are the foundation for every business decision
we make.``
ORIGINS
The recipe for Pepsi, the soft drink, was first developed in the 1890s by a New Bern, North Carolina pharmacist and
industrialist, Caleb Bradham, who named it "Pepsi-Cola" in 1898. As the cola developed in popularity, he created the
Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903.
[3]
The Pepsi-Cola Company was first
incorporated in the state of Delaware in 1919.
[4]
The company went bankrupt in 1931 and on June 8 of that year the
trademark and syrup recipe was bought by Charles Guth who owned a syrup manufacturing business in Baltimore,
Maryland. Guth was also the president of Loft, Incorporated, a leading candy manufacturer and used the company's
labs and chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large chain of candy
shops and restaurants, which were known for their soda fountains, used Loft resources to promote Pepsi, and moved
the soda company to a location close by Loft's own facilities in New York City. In 1935 the shareholders of Loft sued
Guth for his 91% stake of PepsiCo in the landmark Guth v. Loft Inc.. Loft won the suit and on May 29, 1941 formally
absorbed Pepsi into Loft, which was then rebranded as Pepsi Cola Company that same year. (Loft restaurants and
candy stores were spun off at this time.) In the early 1960s the company product line expanded with the creation of
Diet Pepsi and purchase of Mountain Dew.
[5]

Separately, the Frito Company and H.W. Lay & Company two American potato and corn chip snack manufacturers
began working together in 1945 with a licensing agreement allowing H.W. Lay to distribute Fritos in the Southeastern
United States. The companies merged to become Frito-Lay, Inc. in 1961.
[6]

In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the company it is known as at
present. At the time of its foundation, PepsiCo was incorporated in the state of Delaware and headquartered in
Manhattan, New York. The company's headquarters were relocated to its still-current location of Purchase, New York
in 1970,
[7]
and in 1986 PepsiCo was reincorporated in the state of North Carolina.
[4]

PepsiCo was the first company to stamp expiration dates, starting in March 1994.

ACQUISITIONS AND DIVESTMENTS
Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses outside of its core
focus of packaged food and beverage brands; however it exited these non-core business lines largely in 1997,
selling some, and spinning off others into a new company named Tricon Global Restaurants, which later became
known as Yum! Brands, Inc..
[8]
PepsiCo also previously owned several other brands that it later sold, in order to
allow it to return focus to its primary snack food and beverage lines, according to investment analysts reporting on
the divestments in 1997.
[9]
Brands formerly owned by PepsiCo include: Pizza Hut,
[10]
Taco Bell,
[10]
KFC,
[10]
Hot 'n
Now,
[11]
East Side Mario's,
[12]
D'Angelo Sandwich Shops,
[13]
Chevys Fresh Mex, California Pizza Kitchen,
[14]

Stolichnaya
[15]
(via licensed agreement), Wilson Sporting Goods
[16]
and North American Van Lines.
[17]

The divestments concluding in 2007 were followed by multiple large-scale acquisitions, as PepsiCo began to extend
its operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo purchased the
orange juice company Tropicana Products in 1998,
[18]
and merged with Quaker Oats Company in 2001,
[19]
adding
with it the Gatorade sports drink line and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima,
among others.
[20]

In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its products in North America:
Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition was completed, resulting in the formation of a
new wholly owned subsidiary of PepsiCo, Pepsi Beverages Company.
[21]
In February 2011, the company made its
largest international acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann Foods, a Russian
food company which produces milk, yogurt, fruit juices and dairy products.
[22]
When it acquired the remaining 23%
stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food and beverage company in
Russia.
[23][24]


RESTRUCTURING
In February 2012 ahead, CEO of PepsiCo Inc. plans to cut 8,700 jobs or about 3
percent of the PepsiCo's global workforce and boost marketing spending for its
brand by as much as $600 million. It may save about $1.5 billion by 2014.
[25]

COMPETITION
The Coca-Cola Company has historically been considered PepsiCos primary competitor in the beverage market,
[26]
and
in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since
both companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft
drink sales within the U.S.
[27]
In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage
market, however, reflecting the differences in product lines between the two companies.
[27]
As a result of mergers,
acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader
product base, including foods, snacks and beverages. The majority of PepsiCo's revenues no longer come from the
production and sale of carbonated soft drinks.
[28]
Beverages accounted for less than 50 percent of its total revenue in
2009. In the same year, slightly more than 60 percent of PepsiCo's beverage sales came from its primary non-
carbonated brands, namely Gatorade and Tropicana.
[27]

PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market, accounting for
approximately 39 percent of U.S. snack food sales in 2009.
[27]
One of PepsiCo's primary competitors in the snack food
market overall is Kraft Foods, which in the same year held 11 percent of the U.S. snack market share.
[27]


PRODUCTS AND BRANDS
PEPSI-COLA BRANDS
Pepsi
Sierra Mist
Slice
Tropicana
Ocean Spray (License)
More
Mountain Dew
AMP Energy
Mug Root Beer
No Fear
Seattle's Best Coffee
Tazo
SoBe
Aquafina
Starbucks (Partnership)
Lipton (Partnership)
Outside North America



FRITO-LAY-NORTH
AMERICA BRANDS
Lay's potato chips
Lay's Kettle Cooked potato
chips
Wavy Lay's potato chips
Baked Lay's potato crisps
Maui Style potato chips
Ruffles potato chips
Baked Ruffles potato
crisps
Doritos tortilla chips
Baked Doritos tortilla
chips
Tostitos tortilla chips
Baked Tostitos tortilla
chips
Santitas tortilla chips
Stacy's pita chips
Fritos corn chips



FRITO-LAY- NORTH AMERICA BRANDS
Cheetos cheese flavored snacks
Rold Gold pretzels
Funyuns onion flavored rings Sunchips
multigrain snacks
Sabritones puffed wheat snacks
Cracker Jack candy coated popcorn
Chester's popcorn Grandma's cookies
Gamesa cookies and wafers
Munchos potato crisps Smartfood popcorn
Baken-ets fried pork skins
Matador meat snacks
Frito-Lay nuts Frito-Lay,
Fritos and Tostitos dips & salsas Frito-Lay,
Doritos and Cheetos snack crackers Hickory
Sticks
PRODUCTS AND BRANDS
FRITO-LAY OUTSIDE NORD
AMERICA BRANDS

Bocabits wheat snacks
Crujitos corn snacks
Fandangos corn snacks
Hamka's snacks
Niknaks cheese snacks
Quavers potato snacks
Sabritas potato chips
Smiths potato chips
Walkers potato crisps
Walkers Square potato
snacks
Walkers French Fries
potato sticks


FRITO-LAY OUTSIDE NORD AMERICA BRANDS

Walkers Monster Munch corn snacks, Gamesa cookies Doritos Dippas
Sonric's sweet snacks, Wotsits corn snacks, Walkers Sensations
Doritos, A La Turca Lay's Mediteranneas, Red Rock Deli Kurkure Smiths
Sensations Lays Artesanas PC Cheetos Shots Quavers Snacks

GATORADE BRANDS
TROPICANA BRANDS
QUAKER BRANDS
PRODUCTS AND BRANDS
AREAS OF BUSINESS
The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of 2010
it is separated into four main divisions:
[31]
PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia,
Middle East and Africa. As of 2009, 71 percent of the companys net revenues came from North and South America, 16 percent from
Europe and 13 percent from Asia, the Middle East and Africa.
[32]
Approximately 285,000 people are employed by PepsiCo worldwide as of
2010.
[33]