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PepsiCo—American Food And Beverage Company

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PepsiCo, Inc. an American food and beverage company that is one of the largest in the world, with products available in more than 200 countries. It took its name in 1965 when the Pepsi-Cola Company merged with Frito-Lay, Inc. The company’s headquarters are in New York.

PepsiCo, Inc. operates worldwide beverage, snack, and food businesses. The Company manufactures or uses contract manufacturers, markets, and sells a variety of grain-based snacks, carbonated and non-carbonated beverages, and foods in countries throughout the world.

PepsiCo - Company Highlights

  • Startup Name-PepsiCo, Inc.
  • Headquarters-Harrison, New York, United States
  • Industry-Beverages, Food processing
  • Founder-Caleb Bradham
  • Founded-August 28, 1920
  • CEO-Ramon Laguarta
  • Areas served-Worldwide
  • Website-www.pepsico.com

PepsiCo - About and How it works?

PepsiCo, Inc. is an American multinational food, snack and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. 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 included an acquisition of Tropicana Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio.

As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion, and the company's 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 and beverage business in the world, behind Nestlé. Within North America, PepsiCo is the largest food and beverage business by net revenue. Ramon Laguarta has been the chief executive of PepsiCo since 2018. The company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions.

PepsiCo - Logo and its meaning

In 2008 Pepsi redesigned its logo, which was very similar to the old one. It is claimed that the new logo represents Earth’s magnetic field, feng shui, Pythagoras, geo dynamics, renaissance and more. In short, it is some kind of Da Vinci Code.

PepsiCo - Founder and History

Pepsi's story started with Caleb Bradham, a North Carolina industrialist, who developed the first Pepsi recipe in the 1880s.

PepsiCo | Founder

The first Pepsi-Cola was created by Caleb D. Bradham (1866–1934), a pharmacist in New Bern, North Carolina. Hoping to duplicate the recent success of Coca-Cola, Bradham named his sweet cola-flavored carbonated beverage Pepsi-Cola in 1898. The drink proved so popular that in 1902 Bradham incorporated the Pepsi-Cola Company. After many years of moderate prosperity, the company fell on hard times after World War I and was reorganized and reincorporated on several occasions in the 1920s.

PepsiCo - Mission

PepsiCo's overall mission is to increase the value of our shareholder's investment.

"We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity."

PepsiCo - Business Model

PepsiCo generates revenue through the sale of various consumer food and beverage products. With 53% of revenues coming from food, and the remaining 47% coming from the beverage. PepsiCo is a Food and Beverage Empire that in 2017 made over $63 billion in revenues. North America Beverage segment represented 33% of those revenues. 58% of its revenues were in the US. The company distributes its products via direct-store-delivery, customer warehouses, and other distribution networks. The Company's product portfolio includes a range of high-profile brand name products, including Pepsi, Diet Pepsi, 7UP, Gatorade, Mirinda, Doritos, Lay's, Cheetos, and Ruffles.

PepsiCo - Revenue and Growth

PepsiCo's revenue for the twelve months ending September 30, 2020 was $68.557B, a 3.8% increase year-over-year.

Year Amount Percentage change from last year

2019 $67.161B +3.87%

2018 $64.661B +1.79%

2017 $63.525B +1.16%

PepsiCo - Acquisitions

PepsiCo has acquired 29 organizations. Their most recent acquisition was Rockstar Energy Drink on Mar 11, 2020. They acquired Rockstar Energy Drink for $3.9B.

PepsiCo - Competitors

Coca-Cola is PepsiCo's top competitor. Other competitors include Keurig Dr Pepper, Danone, Nestle, Britvic, Red Bull, Mondelez International and Monster Beverage.

PepsiCo - Challenges Faced

In the spring of 2002, PepsiCo's senior management members met to consider the challenges facing the company in their quest to become a “growth company like no other.” As they surveyed the business landscape, they were guardedly optimistic about their ability to meet this ambitious goal; however, they were certain that growth was not negotiable. As Steve Reinemund, ex-chairman and ex-CEO, said in the 2001 annual report, “Growth, after all, is what PepsiCo is about.”

Industry leaders Coke and Pepsi have struggled to find growth as soda-drinking consumers buy less, and have tackled the problem differently. PepsiCo's  North American Beverage (NAB) division's performance for the first half of 2018 showed a 2% case sales decline and an 18% operating profit shortfall. Coca-Cola eked out 2% growth in cases during this same time, with gains in Classic Coke, Zero Sugar and Diet Coke.

During the company's Q2 earnings call, PepsiCo CEO Indra K. Nooyi, who is stepped down from the CEO role on Oct. 3, noted the slowdown in NAB sales. Nooyi mentioned an as-yet-unseen return to revenue growth in the second half of the quarter. So far, Pepsi has leaned on increased media spending to try and juice its carbonated beverage segment

There were several reasons why growth was non-negotiable.

The new climate of investor expectations demanded earnings fueled by both top-line growth and consistency.

Second, the company had just completed a series of spin outs, acquisitions, and mergers, transforming PepsiCo into a convenience food and beverage giant. The acquisition of Tropicana and the landmark merger with the Quaker Oats Company (Quaker) created a number of synergies that remained to be exploited. Finally, PepsiCo had to adjust to a changing competitive landscape. It could no longer measure its performance only against the fountain and grocery store sales of Coca-Cola.

The new PepsiCo was a global food and beverage contender, competing against the likes of Kraft and Nestlé, as well as any upstart with a great idea for a drink or snack. Over the previous three years, the food and beverage industry continued to consolidate, and several key competitors had already established a footprint in PepsiCo's platform areas.

PepsiCo - Future Plans

PepsiCo announces that its snacks and drinks will be made with renewable electricity in the U.S. by the end of 2020 and sets a new target to source 100% renewable electricity globally, across direct operations by 2030 and entire global operations by 2040.

PepsiCo, Inc. announced an ambitious global sustainability agenda designed to foster continued business growth in a way that responds to changing consumer and societal needs. The company's efforts, which focus on creating a healthier relationship between people and food, include specific 2025 goals to continue transforming PepsiCo's food and beverage product portfolio, contribute to a more sustainable global food system and help make local communities more prosperous.

"To succeed in today's volatile and changing world, corporations must do three things exceedingly well: focus on delivering strong financial performance, do it in a way that is sustainable over time and be responsive to the needs of society," said PepsiCo Chairman and ex-CEO Indra Nooyi. "The first ten years of PepsiCo's Performance with Purpose journey have demonstrated what is possible when a company does well by also doing good. We have created significant shareholder value, while taking important steps to address environmental, health and social priorities all around the world."

PepsiCo - FAQ's

Who founded PepsiCo Company?

Pepsi's story started with Caleb Bradham, a North Carolina industrialist, who developed the first Pepsi recipe in the 1880s.

Who is the CEO of PepsiCo?

Ramon Laguarta is the CEO of PepsiCo.

Why is it called Pepsi?

It was renamed Pepsi-Cola in 1898, "Pepsi" because it was advertised to relieve dyspepsia (today is more commonly known as indigestion or an upset stomach), and "Cola" referring to the cola flavor.

Why is PepsiCo so successful?

Much of the company's success comes from the fact that it consistently stays in touch with changing trends and lifestyles, and gives consumers the tastes and conveniences they desire.

Is Pepsi owned by Coca-Cola?

The Coca-Cola Company and PepsiCo are completely separate companies. Their lead products are similar, but they have been direct competitors since the early 20th century.

Is Pepsi a good company?

Pepsi is a good company as far as pay and benefits but the management teams are nearly impossible to work with. They're constantly moving managers all over the country so your branch is in a constant state of management flux.

How does PepsiCo make money?

With 53% of revenues coming from food, and the remaining 47% coming from the beverage. PepsiCo is a Food and Beverage Empire that in 2017 made over $63 billion in revenues.

PepsiCo - Conclusion

PepsiCo is one of the world's largest food and beverage companies serving more than 200 countries and territories around the world. PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $70 billion in net revenue in 2020, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.


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