Full Description

PepsiCo, Inc. (PepsiCo), incorporated in 1919, is a global beverage, snack and food company. The Company manufactures, markets and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods approximately 200 countries, with its operations in North America (United States and Canada), Mexico and the United Kingdom. The Company is organized into three business units: PepsiCo Americas Foods (PAF), which includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of its Latin American food and snack businesses (LAF), including its Sabritas and Gamesa businesses in Mexico; PepsiCo Americas Beverages (PAB), which includes PepsiCo Beverages North America and all of its Latin American beverage businesses, and PepsiCo International (PI), which includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. The Company’s three business units were organized in six segments: FLNA, QFNA, LAF, PAB, United Kingdom & Europe (UKEU), and Middle East, Africa & Asia (MEAA).

In June 2009, the Company’s joint venture, International Dairy and Juice Limited (IDJ), acquired 75% of Jordanian dairy producer, Teeba Investment for Developed Food Processing Company (Teeba). The Teeba stake had been owned by Almarai, which acquired it in January 2009, and is transferring it to the joint venture. IDJ is held 52% by PepsiCo and 48% by Almarai. In April 2009, the Company announced that it acquired Peruvian snack business Karinto S.A.C., maker of corn chips, Los Cuates, as well as a line of nuts and seeds. In August 2008, PepsiCo and The Pepsi Bottling Group, Inc. announced that they have completed a joint acquisition of a 75.53% stake in JSC Lebedyansky. In May 2008, PepsiCo and The Pepsi Bottling Group, Inc., through their PR Beverages Limited joint venture in Russia, completed acquisition of Sobol-Aqua JSC. Sobol is a beverage manufacturing company based in Novosibirsk, Russia. In April 2008, PepsiCo announced the acquisition of V Water, a vitamin water brand in the United Kingdom.

Frito-Lay North America

FLNA manufactures or uses contract manufacturers, markets, sells and distributes branded snacks. These snacks include Lay’s potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, branded dips, Fritos corn chips, Ruffles potato chips, Quaker Chewy granola bars, SunChips multigrain snacks, Rold Gold pretzels, Santitas tortilla chips, Frito-Lay nuts, Grandma’s cookies, Gamesa cookies, Munchies snack mix, Funyuns onion flavored rings, Quaker Quakes corn and rice snacks, Miss Vickie’s potato chips, Stacy’s pita chips, Smartfood popcorn, Chester’s fries and branded crackers. FLNA branded products are sold to independent distributors and retailers. In addition, FLNA’s joint venture with Strauss Group manufactures, markets, sells and distributes Sabra refrigerated dips. FLNA’s net revenue was approximately 29% of the Company’s total net revenue during the fiscal year ended December 27, 2008 (fiscal 2008).

Quaker Foods North America

QFNA manufactures or uses contract manufacturers, markets and sells cereals, rice, pasta and other branded products. QFNA’s products include Quaker oatmeal, Aunt Jemima mixes and syrups, Quaker grits, Cap’n Crunch cereal, Life cereal, Rice-A-Roni, Pasta Roni and Near East side dishes. These branded products are sold to independent distributors and retailers. QFNA’s net revenue was approximately 4% of the Company’s total net revenue in fiscal 2008.

Latin America Foods

LAF manufactures, markets and sells a number of salty and sweet snack brands, including Gamesa, Doritos, Cheetos, Ruffles, Sabritas and Lay’s. Further, LAF manufactures or uses contract manufacturers, markets and sells many Quaker brand cereals and snacks. These branded products are sold to independent distributors and retailers. LAF’s net revenue was approximately 14% in fiscal 2008.

PepsiCo Americas Beverages

PAB manufactures or uses contract manufacturers, markets and sells beverage concentrates, fountain syrups and finished goods, under various beverage brands including Pepsi, Mountain Dew, Gatorade, 7UP (outside the United States), Tropicana Pure Premium, Sierra Mist, Mirinda, Tropicana juice drinks, Propel, Dole, Amp Energy, SoBe Lifewater, Naked juice and Izze. PAB also manufactures or uses contract manufacturers, markets and sells ready-to-drink tea, coffee and water products through joint ventures with Unilever (under the Lipton brand name) and Starbucks. In addition, PAB licenses the Aquafina water brand to its bottlers and markets this brand. PAB sells concentrate and finished goods for some of these brands to authorized bottlers, and some of these branded finished goods are sold directly by the Company to independent distributors and retailers. The bottlers sell its brands as finished goods to independent distributors and retailers. PAB’s net revenue was approximately 25% in fiscal 2008.

United Kingdom & Europe

UKEU manufactures, markets and sells through consolidated businesses, as well as through non-controlled affiliates, a number of salty and sweet snack brands, including Lay’s, Walkers, Doritos, Cheetos and Ruffles. Further, UKEU manufactures or uses contract manufacturers, markets and sells many Quaker brand cereals and snacks. UKEU also manufactures, markets and sells beverage concentrates, fountain syrups and finished goods, under various beverage brands, including Pepsi, 7UP and Tropicana. In addition, through the acquisition of JSC Lebedyansky (Lebedyansky), the Company acquired Russia’s juice brands. These brands are sold to authorized bottlers, independent distributors and retailers. However, in certain markets, UKEU operates its own bottling plants and distribution facilities. In addition, UKEU licenses the Aquafina water brand to certain of its authorized bottlers. UKEU also manufactures or uses contract manufacturers, markets and sells ready-to-drink tea products through an international joint venture with Unilever (under the Lipton brand name). UKEU’s net revenue was approximated 15% of the total revenue in fiscal 2008.

Middle East, Africa & Asia

MEAA manufactures, markets and sells through consolidated businesses, as well as through non-controlled affiliates, a number of salty and sweet snack brands, including Lay’s, Doritos, Cheetos, Smith’s and Ruffles. Further, MEAA manufactures or uses contract manufacturers, markets and sells many Quaker brand cereals and snacks. MEAA also manufactures, markets and sells beverage concentrates, fountain syrups and finished goods, under various beverage brands including Pepsi, Mirinda, 7UP and Mountain Dew. These brands are sold to authorized bottlers, independent distributors and retailers. However, in certain markets, MEAA operates its own bottling plants and distribution facilities. In addition, MEAA licenses the Aquafina water brand to certain of its authorized bottlers. MEAA also manufactures or uses contract manufacturers, markets and sells ready-to-drink tea products through an international joint venture with Unilever. MEAA’s net revenue was approximately 13% in fiscal 2008.

PepsiCo competes with The Coca-Cola Company.