|

Company Snapshot : PepsiCo

  • Jul 17th, 2017

1. PepsiCo Global:

1.1 About the Company

  • PepsiCo is a global food and beverage leader with net revenue of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. PepsiCo's main businesses are Quaker, Tropicana, Gatorade, Frito-Lay, and Pepsi-Cola that make hundreds of food items and beverages that are loved throughout the world.
  • PepsiCo offers products to over 200 countries and territories.
  • PepsiCo is registered under the name of PEP at NewYork Stock Exchange.
  • PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. 

1.2 History

PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was appointed the chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi-Cola, was appointed as the president and chief executive officer.

The new company PepsiCo, reported sales of $510 million and has 19,000 employees in 1965. Major products of the new companies are:

  • Pepsi-Cola Company: Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948).
  • Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961).

1.3 Founder of PepsiCo -Caleb Bradham

1.4 Founded in- 1965

1.5 Headquarters: Purchase, NewYork, USA

1.6 Chairman of the Board of Directors and CEO- Indra K Nooyi

1.7 PepsiCo's flagship food and beverages: 22 Billion-Dollar brands

 These are either the subsidiaries of PepsiCo or the joint ventures. 

  • Lipton, ready-to-drink beverages are sold by Pepsi Lipton International, a company jointly owned by Unilever and PepsiCo.
  • Brisk is a food and drinks brand managed by the Joint Venture of PepsiCo and Unilever, started in 1991.
  • In 1994, PepsiCo and Starbucks formed the North American Coffee Partnership to jointly develop ready-to-drink coffee beverages.

2. PepsiCo India:

PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage businesses in India. PepsiCo India has been consistently investing in the country and has built an expansive beverage and snack food business supported by 38 beverage bottling plants and 3 food plants. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade, and Quaker. Within 2 decades, the company has been able to organically grow 'eight' Rs. 1000 crore+ brands in India, which are household names trusted across the country.

2.1 Facilities:

  • 38 bottling plants
  • 3 food plants

2.2 Headquarters- Gurgaon, Haryana

2.3 Employment opportunities: Presently employs 6400 people and provides indirect employment to almost 2,00,000 people.

2.4 Product segment in Indian Market:

2.4.1 Beverages

PepsiCo India’s expansive beverage portfolio includes:

  • Iconic refreshment beverages: Pepsi, 7UP, Nimbooz, Mirinda, Mountain Dew
  • Low-calorie options: Diet Pepsi
  • Hydrating and nutritional beverages: Aquafina (drinking water), Gatorade (isotonic sports drink)
  • Fruit juices: Tropicana100%
  • Juice-based drinks: Tropicana Nectars, Tropicana Twister, Slice
  • Local brands: Lehar Evervess Soda, Dukes Lemonade, Mangola

2.4.2 Snacks

PepsiCo’s food division, Frito-Lay, is the leader in the branded salty snack market. All Frito-Lay products are free of trans-fat and MSG. Frito-Lay’s core products are:

  • Lay's potato chips
  • Kurkure
  • Kurkure Desi Beats
  • Uncle Chipps
  • Cheetos extruded snacks (including Cheetos Whoosh made of whole grain and vegetables)

2.4.3 Other Food products:

  • Quaker Oats (high-fibre breakfast cereal)
  • Traditional snacks under the Kurkure and Lehar brands
  • Low fat and roasted snack options

2.5 Chairman and Chief Executive Officer (CEO)- D. Shivkumar


3. Last 3 Years Financial Highlights of PepsiCo Global:

Year

Revenue

Net Profit

2016

$62,799 Millions

$6329 Millions

2015

$63,056 Millions

$5452 Millions

2014

$66,683 Millions

$6513 Millions

(*Data of 2016)


4. PepsiCo Brands and Intellectual Property Rights

PepsiCo also holds long-term licenses to use valuable trademarks in relation to the products in certain markets, including Dole and Ocean Spray. PepsiCo also distributes Rockstar Energy drinks, Muscle Milk protein shakes, and various DPSG brands, Crush and Schweppes, including Dr. Pepper in certain markets. They also have joint ventures in which they either have an ownership interest or own or have the right to use certain trademarks, such as Lipton, Sabra, and Starbucks. Trademarks remain valid as long as they are used properly for identification purposes. The company has authorized through licensing arrangements, the use of many trademarks in such contexts as snack food joint ventures and beverage bottling appointments. In addition, PepsiCo licenses the use of their trademarks on merchandises that are sold at the retail stores, which works to enhance brand awareness. PepsiCo either owns or has licenses to use a number of patents which relate to certain products, their packaging, the processes for their production and the design and operation of various types of equipment used in their businesses. Some of these patents are licensed to others.

PepsiCo owns numerous valuable trademarks which are essential to the worldwide businesses, including:

Agusha H2oh! Imunele Izze J-7 Tonus Kas Kurkure Miss Vickie’s Mist Twst Pepsi Zero Sugar Ruffles
Amp Energy Cheetos Chester’s Chipsy Chokis Frustyle KeVita Lubimy Mother’s Propel Sabritas
Aquafina Chudo Diet Mountain Dew Domik v Derevne Emperador G Series Lay’s Manzanita Sol Mountain Dew Quaker Sakata
Aquafina Flavorsplash Cracker Jack Diet Mug Doritos Frito-Lay G2 Life Marias Gamesa Mountain Dew Code Red Quaker Chewy Saladitas
Aunt Jemima Crunchy Diet Pepsi Duyvis Fritos Gatorade Lifewtr Matutano Mountain Dew Kickstart Rice-A-Roni Sandora
Cap’n Crunch Diet Mist Twst Diet 7UP (outside the United States) Elma Chips Fruktovy Sad Grandma’s Lifewater Mirinda Mug Rold Gold Santitas
Munchies Naked Near East O.N.E. Paso de los Toros Pasta Roni Pepsi Pepsi Max Pepsi Next Rosquinhas Mabel 7UP (outside the United States)
7UP Free (outside the United States) Simba Smartfood Smith’s Snack a Jacks SoBe SoBe Lifewater Sonric’s Stacy’s Sting SunChips
Toddy Toddynho Tostitos Trop 50 Tropicana Tropicana Farmstand Tropicana Pure Premium Tropicana Twister V Water Vesely Molochnik Walkers and Ya

5. Major Acquisitions and Joint Ventures

Nov 22, 2016

KeVita

Nov 10, 2011

Mabel

Oct, 2011

Wimm-Bill-Dann Foods

Sep 14, 2011

ilexis S.A

Aug 4, 2009

PepsiAmericas

Aug 4, 2009

Pepsi Bottling Group

Oct 29, 2008

Spitz International

Apr 30, 2008

V water

Sep 26, 2006

IZZE Beverage

Jan 12, 2006

Stacy's Pita Chip Company

Jan 2, 2006

Star Foods

Dec 4, 2000

The Quaker Oats Company

Oct 31, 2000

South Beach Beverage Company

Jul 20, 1998

Tropicana Beverage Group

Jul 25, 1986

KFC

6. Divestments

Between the late-1970s and the mid-1990s, PepsiCo expanded its business to outside its core focus of packaged food and beverage brands via acquisition; 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. PepsiCo also previously owned several other brands that it later sold so that they could focus on the primary snack foods and beverages lines, according to investment analysts reporting on the divestments in 1997. Brands formerly owned by PepsiCo include:

Pizza Hut Chevys Fresh Mex
Taco Bell Carlifornia Pizza Kitchen
KFC D'Angelo Sandwich Shops
Hot 'n Now North American Van Lines
East Side Mario's  
  • Pizza Hut, Taco Bell, KFC

PepsiCo's fast food division "YUM!" is the parent corporation of KFC, Pizza Hut, and Taco Bell restaurant companies. Yum! was created on May 30, 1997, as Tricon Global Restaurants, Inc. Tricon Global was spun out in late 1997.

  • Hot 'n Now

After acquiring "Hot 'n Now" PepsiCo had placed its operations under the Taco Bell unit which it later sold to a Connecticut company in 1996.

  • East Side Mario's

The Company's American subsidiary was later purchased by Pizza Hut and Prime Restaurants retained exclusive rights to the Canadian trademarks. In  February 2000, Prime Restaurants re-acquired global trademark rights to East Side Mario’s Restaurants Inc.

  • D'Angelo Sandwich Shops

In August 1997, Papa Gino's Holdings Corporation, the parent company of Papa Gino's, acquired D'Angelo, from prior owner Yum! Brands(then known as Pepsico Inc.'s Pizza Hut unit).

  • Chevys Fresh Mex

Chevys Fresh Mex was acquired by PepsiCo's subsidiary Taco Bell. When PepsiCo decided to exit the restaurant business in 1997, Chevys was sold to the investment group J.W. Childs Associates in the same year.

  • Carlifornia Pizza Kitchen

In 1997, the private equity firm Bruckmann, Rosser, Sherrill & Company bought out PepsiCo’s Carlifornia Pizza Kitchen (CPK).

  • North American Van Lines

In April 1984, North American Van Lines Inc. was put up for sale by PepsiCo which was purchased on May 1984 by Norfolk Southern Corporation for US$315 million.


7. Awards:

7.1 Global

  • 2017, Fortune World’s most admired company- Rank 39
  • 2017, Fortune 500 Company- Rank 44
  • 2017, Fortune Global 500 Company- Rank 127
  • 2017, Forbes  World's Most Valuable Brands- Rank 30

7.2 India

  • 2016, Pepsico India was awarded Grand Emvie, under the best-integrated campaign category for consumer products. The campaign was titled ‘Crash the Pepsi IPL’.
  • 2016, J Walter Thompson was awarded the Second edition of India Chapter of the International Advertising Association (IAA) Awards for Pepsico's 'Pepsi Thi, Pi Gaya' campaign.

8. News:

8.1 Global

8.2 India


You may also like the following articles: