Pepsi Co is a worldwide corporation that has been in existence since the late 19
century when Caleb Bradham, a pharmacist from New Bern, North Carolina first startedexperimenting with different soft drink concoctions. It was in 1898 that Pepsi Cola first became a branded soft drink and from that point forward their product and the companyhave grown to be the most recognized brand in the world.
This past financial year, PepsiCo continued it three-year positive growth strategy by maintaining an aggressive presence in the United States and worldwide, boasting healthy profits and market share.The company is broken into four major branches: Frito-lay North America,PepsiCo Beverages North America, PepsiCo International, and Quaker Foods NorthAmerica. Pepsi Co has one of the largest footholds in each of these markets compared torelative competition, holding the following rankings worldwide: #2 in Carbonated SoftDrinks. #1 in Sports Drink #1 in PET Water Brand (non-jug) #1 in chilled Juices andJuice Drinks #1 Enhanced Water Brand #1 In ready to-Drink Coffee #1 in Ready-to-Drink Teas #1 in Potato Chips #1 in Tortilla Chips #1 in Corn Chips #1 in ExtrudedSnack #1 Multigrain Snacks #2 in Pretzels #1 in Hot Cereal #1 In Grits #1 Rice Side Dish#1 Brand Pancake Syrup #2 Pancake Mix.
Financially “PepsiCo delivered a very strong 2006: Volume grew 5.5%; netrevenue grew 8% to 35,137 in millions; total operating profit increased 9% to 6,439 (inmillions); return on investment was 26%; total return to shareholders was 8%; cash flowfrom operations was 6.1 billion USD, and earnings per share increased 13%.”
Much of the strong financial performance can be attributed to the intense marketing, productdiversification, and strong market presence in the United States. In addition, Pepsi Co“Has a solid share of snacks in major markets such as Mexico, the United Kingdom,Brazil, Australia, India and Russia, and are developing markets such as China,” of whichoffers additional revenue from emerging markets. As will be discussed later, Pepsi Costill remains second in the international beverage industry, with Coca-Cola maintainingits strong market share.
PepsiCo Rankings Worldwide. Hoover’s. http://0-premium.hoovers.com.bianca.penlib.du.edu/subscribe/co/ops.xhtml?ID=ffffrfyhsffytsjrkh. Last updated January 2007. Accessed May 5, 2007.
Financial Releases of PepsiCo. Phoenix Corporate.