TABLE OF CONTENTS

1. Overview of Pepsi Co.

2. Introduction
• Corporate History
• History of Pepsi Co
• Pepsi Co. in U.P.
• Kanpur Warehouse
• Area Office
• Mission & Vision
• Organizational Structure

3. Company Profile
• Contribution
• Bottling operation
• Pepsi Business
• Business challenges & policy of the Company

4. Product Profile

5. Research Methodology

6. Data Introduction

7. Findings
• Graphical Analysis
• SWOT Analysis
• Recommendation

8. Bibliography

9. Annexure

ACKNOWLEDGEMENT
In the pursuit of greater knowledge, a greater understanding of
the market & the corporate world, distribution channels and the
supply of Pepsi, we had to take some precious time put of the,
busy schedules of our project guide & faculty, without their
help, such a through study would not have been possible, Thus
we have been the stepping stones to success.

We would firstly like to thank Mr. Subodh Udhania & Mr. Aprove
Mathur for guiding us through the whole process and for being
there at times when I needed their support. They have enabled
us to have a vision and the driving energy to fulfill our aims.

PREFACE
Summer training program is an integrated part of M.B.A.
program the emphasis in this program is to provide practical
the job exposure to real life management situation and to
develop simultaneously the ability to relate the studies to the
real world. This also helps to gain insight into corporate culture
and in developing decision making abilities.
I gained valuable experience and knowledge during the survey.
The summer training report consist of my findings after
tabulation of collected data and finally recommendation were
put forward.
Report consist of two section :-
1.) - Introduction
2. ) - Project
Introduction part introduce the Pepsi Co. India Holding Pvt. Ltd.
and Project part involves the Objective, Scope and
Methodology . It also deals With findings and recommendation.

PEPSI OVERVIEW
PepsiCo is a world leader in convenient foods and
beverages, with 2006 revenues of more than S35 billion
and 168,000 employees :

The company consists of Frito-Lay North America, PepsiCo

Beverages North America, PepsiCo International and Quaker
Foods North America. PepsiCo brands are available in nearly
200 countries and territories and generate sales at the retail
level of about $92 billion.

Some of PepsiCo’s brand names are more than 100-years-old,

but the corporation is relatively young. PepsiCo was founded in
1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana
was acquired in 1998 and PepsiCo merged with The Quaker
Oats Company, including Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of

needs and preference — from fun-for-you items to product
choices that contribute to healthier lifestyles.

Pepsico mission is to be the world’s premier consumer products

company focused on convenient foods and beverages. We seek
to produce healthy 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.

Shareholders :
PepsiCo (symbol: PEP) shares are traded principally on the New
York Stock Exchange in the United States. The company is also
listed on the Amsterdam, Chicago and Swiss stock exchanges.
PepsiCo has consistently paid cash dividends since the
corporation was founded.

Corporate Citizenship :

At PepsiCo, we believe that as a corporate citizen, we have a

responsibility to contribute to the quality of life in our
communities. This philosophy is expressed in our sustainabilitv
vision which states : Pepsico 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 Headquarters :

PepsiCo World Headquarters is located in Purchase, New York,

approximately 45 minutes from New York City. The seven-
building headquarters complex was designed by Edward Durrell
Stone, one of America’s foremost architects. The building
occupies 10 acres of a 144-acre complex that includes the
Donald M. Kendall Sculpture Gardens, a world-acclaimed
sculpture collection in a garden setting.
The collection of works is focused on major twentieth century
art, and features works by masters such as Auguste Rodin,
Henri Laurens, Henry Moore, Alexander Calder, Alberto
Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The
gardens originally were designed by the world famous garden
planner, Russell Page. and have been extended by Frank§ois
Goffinet. The grounds are open to the public, and a visitor’s
booth is in operation during the spring and summer.

PepsiCo World Headquarters is located in Purchase, New York,

approximately 45 minutes from New York City. The seven-
building headquarters complex was designed by Edward Durrell
Stone, one of America’s foremost architects. The building
occupies 10 acres of a 144-acre complex that includes the
Donald M. Kendall Sculpture Gardens, a world-acclaimed
sculpture collection in a garden setting.

The collection of works is focused on major twentieth century

art, and features works by masters such as Auguste Rodin,
Henri Laurens, Henry Moore, Alexander Calder. Alberto
Giacometti_ Arnaldo Pomodoro and Claes Oldenberg. The
gardens originally were designed by the .N-orld famous garden
planner. Russell PaLle, and have been extended by FranA§ois
Goffinet. The grounds are open to the public. and a visitor’s
booth is in operation during the spring and summer.

FRITO-LAY ;
Frito-lay north americaPepsiCo’s snack food operations had
their start in 1932 when two separate events took place. In San
Antonio, Texas, Elmer Doolin bought the recipe for an unknown
food product K” a corn chip and started an entirely new
industry. The product was Fritos brand corn chips, and his firm
became the Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay

started a business distributing potato chips. Mr. Lay later
bought the company that supplied him with product and
changed its name to H.W. Lay Company. The Frito Company
and H.W. Lay Company merged in 1961 to become Frito-Lay,
Inc.

Frito-lay north americaMajor Frito-Lay products include

LayaCTMS potato chips, Doritos flavored tortilla chips, Tostitos
tortilla chips, Cheetos cheese flavored snacks, Fritos corn
chips, Ruffles potato chips, Rold Gold pretzels, sun Chips
multigrain snacks, Munchies snack mix, Lay5CTMS Stax potato
crisps, Cracker Jack candy coated popcorn and Go Snacks.
Frito-Lay also sells a variety of branded dips, Quaker Fruit &
Oatmeal bars, Quaker Quakes corn and rice snacks, Grandmaa
cookies, nuts and crackers.

PEPSI –COLA :

Pepsi beverage business was founded 1898 by Caleb Bradham,

a New Bern, North Carolina druggist, who first formulated
Pepsi-Cola.

Today, Brand Pepsi is part of a portfolio of beverage brands

that includes carbonated soft drinks, juices and juice drinks,
ready-to-drink teas and coffee drinks, isotonic sports drinks,
bottled water and enhanced waters. Pepsi Cola has well known
brand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana
Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana
juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and
Tropicana Season Best.

PBNA manufactures and sells concentrate for some of these

brands to licensed bottlers, who sell the branded products to
independent distributors and retailers. PBNA provides
advertising, marketing, sales and promotional support for its
brands. This includes some of the world’s best-loved and most-
recognized advertising.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton

Co. to selling ready-to-drink tea brands in the United States.
Pepsi-Cola also markets Frappuccino ready-to-drink coffee
through a partnership with Starbucks.
Pepsi products Tropicana was founded in 1947 by Anthony
Rossi as a Florida fruit packaging business. In 1954 Rossi
pioneered a pasteurization process for orange juice. For the
first time, consumers could enjoy the fresh taste of pure not-
from-concentrate 100% Florida orange juice in a ready-to serve
package. The juice, Tropicana Pure Premium, became the
company flagship product. PepsiCo acquired Tropicana,
including the Dole juice business, in August 1998.

So be became a part of Pepsi Cola in 2001. SoBe manufactures

and markets an innovative line of beverages including fruit
blends, energy drinks, dairy_ based drinks, exotic teas and
other beverages with herbal ingredients.

Gatorade thirst quencher sport drinks was acquired by The

Quaker Oats Company in 1983 and became a part of PepsiCo
with the merger in 2001. Gatorade is the first isotonic sports
drink. Created in 1965 by researchers at the University of
Florida for the school’s football team, “The Gators,” Gatorade is
now the world’s leading sport’s drink

PEPSICO INTERNATIONAL :

Pepsico international Pepsi-Cola began selling its products

outside the United bega and Canada in the mid-1930s, opening
in the United Kingdom in 1936. Operations grew rapidly
beginning, in the 1950s. Today, PepsiCo beverages are
available in more than 200 countries and territories. Brands
include Aquafina, Gatorade and Tropicana.

In addition to brands marketed in the United States, PepsiCo

International brands include Mirinda, Seven-Up and many local
brands.

Pepsico international PepsiCo began its international snack

food operations in 1966. Today, products are available in
nearly 200 countries. Often PepsiCo snack food products are
known by local names. These names include Gamesa and
 Sabritas in Mexico, Walkers in the United Kingdom, Simths in
Australia, Matutano in Spain, Elma Chips in Brazil, and others.
The company markets Frito-Lay brands on a global level, and
introduces unique products for local tastes.

2007 Milestones :
• PepsiCo signs Maria Sharapova for International
endorsement of Gatorade and Tropicana
• Tropicana launches Tropicana Healthy Heart with Omega-
3s, the first national orange juice to include omega-3s.
• Ruffles unveils new packaging to reflect its switch to 100%
pure sunflower oil
• PepsiCo announces new Diversity & Inclusion Leadership
Award
• inspired by Steve Reinemund
• Mt. Dew and AMP Energy sponsor the Winter X Games
• Aquafina launches Aquafina Aliveda low calorie, vitamin-
enhanced water beverage.
• Quaker Oats debuts new Quaker Life Chocolate Oat
Crunch Cereal.
• Flat Earth Fruit and Vegetable Crisps hit storesnationally.
• Fritos Corn Chips celebrates 75th Annversary with retro
packaging.
• Near East celebrates its 45th Anniversary with a recipe
contest.
• Tropicana launches Tropicana Fruit Squeeze, a 20-calorie
drink with real Tropicana fruit juice
• Lay launches Share the Joya program to help the Make a
Wish Foundation raise funds.
• Pepsi-Cola North America launches Diet Pepsi MAX.

• Oh Boy! Oberto brand debuts 100-calorie Jerky Bites in

original beef, and teriyaki turkey flavors
• IZZE Launches IZZE Esque, a low-calorie, nothing artificial
beverage in three flavors: Sparkling Mandarin, Sparkling I
Sparkling Black Raspberry and Sparkling Limon
• Propel unveils new K-Fit Has a Feelinga campaign and
New Powder Packets for On-The-Go
• New Quaker Mini Delights launches offering great taste
and portion control in a satisfying serving of mini snack cakes.
• Diet Pepsi Jazz introduces new Caramel Cream flavor.
• Grandmaa Cookies offering limited-edition flavors for
spring: Iced Lemon and Sugar flavors.
• PepsiCo launches Smart Spot Dance! Initiative with
celebrities Mario Lopez and LaChanze to help African American
and Hispanic families lead healthier, more active lifestyles
• Walkers is the first major food brand in the world to
display a carbon footprint reduction logo on its packs.
• SoBe Beverages launches SoBe Essential Energy.
• PepsiCo Announces 25% Dividend Increase and Raises
Share Repurchase Target; Nooyi Assumes Chairman Title.
• EPA Names PepsiCo 2007 ENERGY STAR(R) Partner of the
Year.
• PepsiCo Makes Largest Corporate Purchase of Renewable
Energy Certificates.
• Pepsi launches KoeDesign Our Pepsi CandEq National
Promotion.

• Tropicana unveils New Organic Line K” Tropicana Organic

Organic.

• QTG facility earns an Energy and Environmental Design

(LEED) Gold a certification from the U.S. Green Building
Council.
• PCNA and Frito-Lay launch Shrek the Third National
Summer Promotion.
• Indra Nooyi receives the Outstanding American by Choice
Award.
•
2006 Milestones :
• Quaker Snacks Unveils Breakfast Cookies
• Doritos unveils new packaging, including an updated logo
• PepsiCo Launches Pepsi Limon in Peru
• PepsiCo Completes Acquisition of Stacy’s Pita Chip
Company
• Tropicana Now Offering OJ with Benecol
• PepsiCo Foodservice Partners With Cracker Barrel to Serve
Up Fritos-Branded Menu Item
• PepsiCo Foodservice Pours Two New Account Wins:
Famous Dave’s of America and Roundtable Pizza
• Pepsi Celebrates 20th Consecutive Super Bowl With New
Diet Pepsi Campaign
• North American Coffee Partnership Launches New
Starbucks Beverages, Starbucks Iced Coffee, Starbucks Iced
Coffee Light as well as Strawberriesand Creme Frappuccino and
Starbucks DoubjeShot Light.
• PepsiCo India re-launches Mirinda.
• SoBe Launches New SoBe Life Water
• Cheetos kicks off the biggest marketing, campaign in its
history with “Undercover Chester,” an integrated
communications platform that asks consumers to help Chester
Cheetah recover the stolen recipe for Cheetos
• In selected cities cross the United States, Pepsi distributes
more than three million free cans of newly reformulated Diet
Mountain Dew, marking the largest single-day sampling effort
in company history
• Frito-Lay announces the launch of a new line of snack
chips called Lay’s Sensations and Tostitos Sensations
• Frito-Lay launches Tostitos Multigrain; new snack brings
flavor of
four wholesome grains to one of America’s favorite tortilla
chips
• Sam’s Club teams with Aquafma to “Return the Warmth”
to local communities through a national large-scale recycling
program. The 50 communities to collect the most Aquafina
bottles and deposit them at designated collection locations
receive a $1,000 grant from Sam’s Club in addition to an
assortment of fleece jackets made from recycled plastic bottle
material
• Lay’s Introduces Hot ‘n Spicy KC Masterpiece BBQ Potato
Chips
• Grammy award winning artist Mariah Carey writes and
records original ringtones for the Pepsi Cool Tones & Motorola
Phones promotion
• Rice-A-Roni introduces a new line of whole-grain side
dishes

• Pepsi Joins Bipartisan Alliance, Adopts New School Policy

to Promote Healthier Lifestyles for Elementary, Middle and High
School Students
• Frito-Lay cuts saturated fat in Lay’s, Ruffles by more than
50% with move to Nu Sun Sunflower Oil.
• Pepsi unveils new Dole Sparklers and Sierra Mist
Cranberry Splash.
• PepsiCo announces that it will be the official, exclusive
food and beverage partner of the highly anticipated Superman
Returns film
• Starbucks and PepsiCo sign a distribution agreement for
Ethos Water.
• PepsiCo,, the National Hockey League (NHL) and the
National Hockey League Players’ Association (NHLPA ) sign an
exclusive multi-year beverage and snack deal
• PepsiCo, National Hockey League and National Hockey
League Players Association sign multi-year deal, giving PepsiCo
exclusive beverage, bottled water and snack categories. With
this deal, Gatorade becomes the official sports drink of NHL.
• PepsiCo Mexico celebrates the official launch of the Vive
Saludable program illustrating their commitment to promote
healthy lifestyles for consumers and employees.
• Diet Pepsi launches Jazz, a new line of zero-calorie colas
available in rich flavors like Black Cherry French Vanilla and
Strawberries & Cream.
• PepsiCo introduces Ben & Jerry Milkshakes, a rich, creamy
drinkable treat in three classic flavors Cherry Garcia, Chunky
Monkey and Chocolate Fudge Brownie.
• Tropicana debuts Tropicana Pure a new line of 100%
premium juices.
• PepsiCo is added to the Dow Jones Sustainability North
America Index (DJSI).
• Quaker Oats debuts its new Quaker Oatmeal Crunch,
warm oatmeal with the crunchy texture of cold cereal.
• Indra Nooyi named Chief Executive Officer of PepsiCo as
of October 1, 2006
• Frito-Lay debuts action cups
• Frito-Lay kicks of its nationwide rollout of LaydCTMs with
100% Pure Sunflower Oil
• Pepsi acquires IZZE beverage company
• Arby dETM s names Pepsi-Cola as its Food and Beverage
Supplier Award winner
• Golden Corral restaurants and Pepsi announce a multi-
year agreement making Pepsi the chamdETNISpreferred
beverage supplier in all locations
• Grandmas Cookies releases 2 limited-edition dE-fall
favorite flavored Spiced Molasses and Fall Fudge Chip
• Cold Stone Creamery announces a multi-year agreement
making Pepsi its exclusive beverage supplier
• Frito-Lay North America signed agreement with the
Alliance for a Healthier Generation for a new policy for selling
our foods in schools.
• Frito-Lay launches new Baked!Tostitos Scoops! Tortilla
chips. With lower calorie and lower fat benefits
• Pepsi signs 5-year sponsorship renewal with Major League
Baseball Properties making Pepssco Official Soft Drink of Major
League Baseball.
• PBSG Parkwood and Frito-Lay headquarters associates
raise more
than $1.8 million dollars in the American Heart Association
Walk
• PepsiCo announced intent to acquire Naked Juice
Company
• Federal Trade Commission clears PepsiCo for Naked Juice
Co. purchase
• PepsiCo announces it will acquire New Zealand snack
company Bluebird Food.

2005 Milestones :
• Frito-Lay introduces Doritos Black Pepper Jack
• Diet Sierra Mist becomes Sierra Mist Free
• SoBe Launches Sugar-Free No Fear.
• PepsiCo launches “Smart Spot” symbol in Canada
• Tropicana Teams With Weight Watchers to Offer Tropicana
Light n Healthy as Part of ‘Points’ Program
• Pepsi Lime and Diet Pepsi Lime Launch
• Tropicana Twister Soda Launched in April

• The Fuddruckers restaurant chain signed a 7-year, 5.6

million gallon agreement with Pepsi-Cola North America to
serve Pepsi products
• Pepsi-Lipton Tea Partnership Announces New Lipton
Original Iced Tea and New Lipton Iced Tea; Reformulated
Ready-to-Drink Teas Hit Store Shelves
• Pepsi-Cola North America adds to its portfolio of Dole
100% juices K” Ruby Red Grapefruit K” as well as a new line of
50% juice beverages called Dole Lights.
• Gatorade introduces Gatorade Endurance Formula
• Pepsi-Cola North America announced it will add
SplendaA*) brand sweetener to a newly reformulated Pepsi
ONE, creating a full-flavor cola taste with only one calorie
• Frito-Lay Brings Wasabi Funyuns to Continental United
States
• Quaker snack bars re-launched with new branding,
packaging and advertising
• PepsiCo Celebrates 40th Anniversary
• PepsiCo International announced the appointment of
Pioneer Foods, a leading South African food and beverage
company, as its franchisee in the Republic of South Africa.
• Tropicana has launched ‘Tropicana Sensations’, a new line
of premium fruit juices in Spain
• PepsiCo launches Quaker Milk Chillers
• Gatorade Partners with NFL to Educate High School
Football Coaches on Proper Hydration During Practice
• Pepsi-Cola North America Launches Mountain Dew Pitch
Wack II
• Quaker Introduces Weight Control Instant Oatmeal
• Diet Pepsi Presents the NFL Rookie Challenge Winner
Receives Superbowl Tickets for Life
• Tropicana Launches All Fruit Smoothies
• Pepsi is chosen as the exclusive beverage provider for
Soup Kitchen International, Inc. and The Original SoupMan
• PepsiCo Donates $2 Million to Pakistan Earthquake Victims
• PepsiCo Launches New Samba Drink in Australia
• Pepsi-Cola North America Launches MDX Energy Soda
• Pepsi Partners with Harvey’s, Swiss Chalet and Milestone’s
Restaurants
• PepsiCo “Twistos” Croutons Launched in Russia
• Gatorade Launches Propel Calcium - First Calcium-
Enriched Fitness Water
• Frito-Lay Launches Quaker Oats in India
• Walkers to Launch New Beef Jerky Product in the U.K.
under its Nobby’s brand
• PepsiCo Health & Wellness Launches Everyday Smart
Moves Magazine
• PepsiCo, Cindy Crawford and KaBOOM Build First Smart
Spot Playground in Washington, D.C
• Pepsi Latte Launches in Thailand
• Tropicana FruitWise Campaign Launches

2004 Milestones :
• Frito-Lay aCTM s 24-count Multi-Sack variety pack won the
Institute of Packaging Professional’s (IoPP) Integrity Award, one
of the industry aCTMS top awards, at this yeardETMs AmeriStar
Packaging Awards
• Frito-Lay Introduces Doritos Black Pepper Jack
• Diet Sierra Mist Becomes Sierra Mist Free
• Pepsi Bottling Group (PBG) Pepsico biggest bottler
bought Phil Gaudreault et Fils Ltee, a Quebec-based Pepsi
bottler.
• SoBe Launches Sugar-Free No Fear
• PepsiCo Launches ‘Smart Spot” Symbol in Canada
• Frito-Lay launches Doritos Edge and Tostitos Edge line
extensions with 60% fewer carbohydrates.
• Gatorade introduces Gatorade Endurance Hydration
Formula a specialized sports drink to meet the needs of
endurance athletes.
• Frito-Lay introduces Quaker Chewy Cookies & Milk granola
bars and Quaker Fruit & Oatmeal cereal bars
• Frito-Lay Canada eliminates trans fats from chips and
launches a line of All Natural and Organic products
• Pepsi-Cola to launch Pepsi Edge, the first full-flavored cola
with 50% less sugar, carbohydrates and calories than regular
cola.
2003 Milestones :
• Pepsi-Cola launches Sierra Mist nationally.
• PepsiCo launches “Get Active/Stay Active” program.
• Quaker Chewy introduces Quaker Chewy Wholesome
Favorites and Quaker Chewy Trail Mix
• Gatorade unveils In-Car Hydration System for NASCAR
Drivers.
• SoBe sponsors U.S. Open Snowboarding Championships.
• Pepsi announces plans to launch Mt. Dew LiveWire, an
orange drink, this summer.
• Pepsi-Cola signs an exclusive four-year sponsorship deal
with the
Canadian Hockey Association, making Pepsi the official soft
drink.
• Pepsi announces four-year sponsorship agreement with
the UK Football Association.
• Frito-Lay announces new line of snacks made with organic
ingredients called Natural Snacks.
• Pepsi stuff Campaign kicks-off in Canada
• Frito-Lay finds winner of Would You Name Your Baby
HortondC11 search celebrating the birthday of its Ruffles
brand. The child will receive $50,000 college tuition fund from
Frito-Lay.
• PepsiCo creates PepsiCo International, the business that
will unite all international snack, beverage and food units in an
 effort to drive faster growth and improved profitability around
the world.
• PepsiCo releases a Spanish-language “Power of One”
television commercial starring Puerto Rican singer and actor,
Ponce, and Velasquez, Mexican-American singer and actress.
• Pepsico Cola trademark turns 100 years old.
• Quaker rolls out new Oatmeal Breakfast Squares.
• Pepsi Vanilla is launched in the United States.
• Tropicana introduces Tropicana 100% Juice Blends.
• Pepsi unveils a new tagline: “Pepsi. It’s the Cola.” It is the
brand’s first major campaign shift since 1999 and highlights
how Pepsi goes with everything from food to fun.

2002 Milestones :
• Frito-Lay introduces Go Snacks, canisters that truly go
anywhere
• Gatorade introduces new Gatorade ICE in three flavors-
Orange, Lime and Strawberry.
• Tropicana Pure Premium announces sponsorship of
Disney’s award-winning show The Lion King
• TropicariaAg Pure PremiumAS introduces 14-oz. single-
serve resealable ‘bottle you can take with you for the on-the-
goconsumers.
• Diet Pepsi has a new look
• “Mr. Green,” a green-tinted carbonated soft drink with
caffeine and ginseng, is launched under SoBe’s New Age
beverage line in April
• The North American Coffee Partnership (NACP), a joint
venture between Starbucks, Coffee Company and PepsiCo, Inc.
introduces Starbucks DoubleShot
• Quaker Oatmeal this year celebrates the 125th
anniversan, of the
nation’s number-one-choice for a nutritious, hot breakfast
cereal.
• Gatorade turns 35. It was created in 1960s to help
• performance of Florida Gators football team and now is
the leading sport drink.
• New line of Gatorade brand drinks, Xtremo, comes in
three new flavors - Mango, Tropical and Citrico.
• PepsiCo and Kenneth Cooper, M.D., M.P.H., of Cooper
Concepts Inc. (CCI), a division of the renowned Cooper Aerobics
Center in Dallas, TX enter into an agreement to promote
nutrition, fitness and wellness
• Dole Beverages enters chilled orange juice business as it
launches
• packages. new flavors and ..ci-L _-afges.
• Aquafina debuts new line of great-tasting enhanced
waters.
• Aquafina. Essentials target active, health-conscious adults
in four lightly sweetened varieties including B-Power,
Calcium+, Daily C and Multi-V in 20-oz. bottles.
• PepsiCo reorganizes to unite all North American beverage
operations, including Pepsi-Cola, Tropicana and Gatorade, into
one new division — PepsiCo Beverages and Foods North
America.
• PepsiCo announces $5 billion share repurchase program.
• Starbucks unveils white vanilla and coconut crA-me
Frappuccino.
• Tropicana has new ad campaign for Tropicana Pure
Premium Healthy Kids - TV spots designed to capture the
essence of children’s needs.
• Galaxy Nutritional Foods launches Ultra Smoothies made
with Tropicana juices
• PepsiCo publishes Health and Wellness Philosophy. (on
pepsico.com)
• Frito-Lay announces it is eliminating trans fats from
Doritos, Tostitos, and Cheetos.
• Frito-Lay announces plans to introduce Lay’s Reduced Fat
chips and Cheetos Reduced Fat snacks.
• Quaker’s Nutrition for Women team has developed a Food
Guide
Pyramid for Women as well as an online nutritional assessment.
• Brand Pepsi has a new look.
• Beyonce Knowles has joined the Pepsi family and will
collaborate with Pepsi two new TV commercials, radio — io, and
Internet ads
• PepsiCo introduces Marathon Kids, a program that
encourages kids and their families to be more physically active.
The program debuts in Dallas, TX.
• Tropicana introduces a new campaign with the tag line
“So pure. So alive. Tropicana Pure Premium.”
• Tropicana Pure Premium and Quaker Oatmeal launch the
Heart and Soul Mates Support Network featuring nutrition tips,
motivational messages and coaching advice, to help consumers
turn healthy habits into life-long change.

2001 Milestones :
• Pepsi-Cola Company launches Dole single-serve juices in
rending machines. coolers and other retail outlets throughout
the United States.
• Pepsi-Cola’s flagship brand will have new tagline, “The Joy
of Pepsi.”
• Tropicana celebrates a company milestone - 300 billion
fresh oranges squeezed since the company began making
country’s first ever mass distributed, not-from-concentrate
juice in 1947
• Tropicana introduces Smoothies. A natural juice-based
product, smoothies combine fruit juices and non-fat yogurt into
a smooth, filling drink that delivers nutrition, taste and
convenience.

• Pepsi-Cola launches the bold new Mount,—;.- Dew Code

Red nationwide. It is Mountain Dew’s first line extension since
the introduction of Diet Mountain Dew in 1988.
• May 2 -The Board of Directors of PepsiCo, Inc. elected
Steven S Reinemund chairman of the board and chief executive
officer, succeeding Roger Enrico who will become vice
chairman. The board also elected liidra K. Nooyi as a director
and gave her the additional title of president of PepsiCo in
addition to CFO
• Frito-Lay introduces Lay’s Bistro Gourmet potato chips.
• Pepsi-Cola Company introduces a “Pepsi Twist.” Regular
and diet versions of the crisp new cola with lemon are entering
retail outlets in selected U.S. markets.
• SLAM, the orange brand Mirinda. is launched in Italy.
• PepsiCo acquires Tasali Foods, Saudi Arabia’s leading
snack company.
• On August 2, PepsiCo merges with The Quaker Oats
Company, creating a $25 billion food and beverage company
focused on the rapidly growing consumer demand for
convenience.
• Tropicana Pure Premium Low Acid orange juice makes
official debut atTropicana 400
• Diet Sierra Mist is Introduced

2000 Milestones :
• Pepsi-Cola revives its “Pepsi Challenge” advertising
campaign. Challenge includes Pepsi One and Diet Coke as well
as regular cola.
• Pepsi-Cola teams up with Yahoo Inc., the biggest web
navigation company, in a multimedia marketing campaign
aimed at teens and campaign young adults.
• Tropicana, in a joint venture with Galaxy Foods Co., will
introduce an icy smoothie soy milk-and-fruit drink, made with
juice, fruit puree along with soymilk and soy protein.
• Aquafina brand bottled water becomes the best-selling
brand of single-serve bottled water in US retail channels.
• PepsiStuff.com, a web site for merchandise, discounts and
digital music files from biggest names in movies, music, video
games, apparel and sports is launched in joint promotion with
Yahoo
• Pepsi-Cola launches “Sierra Mist” a caffeine-free,
lemon/lime soda.
• The North American Coffee Partnership launched Caramel-
flavored bottled Frappuccino Coffee Drink - the sixth flavor
addition to its popular line of ready-to-drink coffee.
• PepsiCo, Inc. reaches agreement to acquire a majority
stake in South Beach Beverage Company, whose highly
 innovative SoBe brand has made it one of industry’s most
successful companies
• PepsiCo, Inc. and The Quaker Oats Company reached an
agreement to merge.
• PepsiCo completes the acquisition of a majority stake in
South Beach Beverage Co
• PepsiCo sales are $20 billion and the company has
125,000 employees at year end
• PepsiColaunchesDiversity@work,http://www.pepsico.com/
diversity website.

1999 Milestones :
• Tropicana introduces two new calcium-fortified Pure
Premium juices: Pure Premium Grovestand Calcium and Pure
Premium Ruby Red Grapefruit Calcium.
• Pepsi launches “The Joy of Cola” advertising campaign.
• In March, The Pepsi Bottling Group, the world’s largest
Pepsi bottler, begins trading on the New York Stock Exchange.
It is listed under the symbol PBG. The $2.3 billion public
offering is among the biggest initial public offerings in stock
market history.
• Steve Reinemund named president of PepsiCo.
• Hallie Eisenberg “Joy of Cola” commercials named #6 of
“Fifty Greatest TV commercials of all time,” by TV Guide.
• Lipton introduces Iced Tea Green Tea with Honey and Diet
Peach.
• PepsiCo and Suntory Limited signed an agreement to
create a joint venture linking bottling networks in North
Carolina and New York. The new company, Pepsi Bottling
Ventures, will be the third largest bottler in the Pepsi system.
• Tropicana juices are entering the huge India market for
the first time. Spearheaded by Tropicana Asia Pacific, orange
juice will appear in the New Delhi and Bangalore markets
• Frito-Lay introduces a new corporate logo.
• Frito-Lay signs agreement with Oberto Sausage to be the
exclusive distributor of the natural-style jerky.
 1998 Milestones :
• Pepsi-Cola introduces two-liter plastic bottle with built-in
“grip handle” that makes it easier to grip and pour.”
• PepsiCo Chairman and CEO Roger A. Enrico donates his
salary to provide scholarships for children of PepsiCo
employees.
• Pepsi introduces new look called the “Globe” which
prominently features a 3-dimensional Globe against a blue ice
backdrop.
• Pepsi-Cola announces breakthrough product: Pepsi One,
great-tasting, one-calorie cola is first in United States with
newly FDA approved sweetener SunettAk.
• Former Chairman and CEO Wayne Calloway dies on July
9th. He
joined PepsiCo in 1967 becoming its Chairman and CEO in
1986.
• PepsiCo acquires Tropicana Products from Seagram
Company Ltd., the biggest acquisition ever undertaken by
PepsiCo. Tropicana was founded in 1947 by Anthony Rossi. Its
major brand is Tropicana Pure Premium Juices.
• The Frito-Lay Company purchases Smith’s Snackfood
Company in Australia from United Biscuits Holdings, Inc.
(Purchase completed on Aug. 26.)
• In November the PepsiCo Board of Directors authorizes
the company to convert a significant portion of its $7 billion
company-owned bottling operations, The Pepsi Bottling Group
(PBG) into public ownership.
• PepsiCo signs groundbreaking 10-year agreement with the
YMCA of the USA through which both Pepsi-Cola and Frito-Lay
will
• develop national and local marketing programs to support
the organization’s many charitable efforts.
• Frito-Lay becomes the snack chip leader in South and
Central America as it enters a joint venture with Empreseas
Polar SA of Venezuela.
• Frito-Lay acquires Barcel, Chile’s second-largest snack
company.
• Frito-Lay acquires an expanded state in Tasty Foods
Egypt.
• Pepsi and Frito-Lay media buying is consolidated.
• PepsiCo products contribute more than any other
packaged goods company to the sales growth in U.S.
supermarkets, mass merchandisers and chain drug stores.
• Tropicana Products, Inc. acquires Alimentos del Valle S.A.,
one of Spain’s leading chilled juice and soup companies.

1997 Milestones :
• Pepsi-Cola introduces new advertising campaign with the
theme “Generation Next.”
• Pepsi-Cola North American bottling operations become a
separate unit called The Pepsi-Cola Bottling Co.
• National roll-out of Aquafina bottled water.
• Frito-Lay announces plans to buy the 104-year-old snack,
Cracker Jack, a candy-coated mix of popcorn and peanuts from
Borden Foods Corp.
• Pepsi-Cola kicks off the celebration of its 1998 100th
Anniversary with first worldwide bottlers conference, held in
Hawaii.
• Frito-Lay introduces Doritos 3D’s Tortilla Chips, a triangle-
shaped chip

1996 Milestones :
• Pepsi-Cola launches Pepsi World at
• “Pepsi Stuff’ unveiled. Consumers save points for
merchandise.
• PepsiCo stocks splits two-for-one.
• Pepsi-Cola domestic and international operations
combined into Pepsi-Cola Company. International and domestic
snack food operations combined into one business unit called
Frito-Lay Company.
• Mountain Dew launches a massive beeper network called
“The Mountain Dew Extreme Network.”
• PepsiCo, Inc. and Lucasfilm Ltd. announce the largest
promotional alliance in entertainment history, linking existing
and future Star Wars series with PepsiCo beverage, snack foods
and restaurant brands worldwide.
• Pepsi-Cola and MTV establish a partnership to develop
international programming, cross promotions, marketing tie-ins
and special events.
• Filming of the world’s first commercial in space.
Cosmonauts shoot a large blue Pepsi can in orbit outside the
MIR Space station.
• International retail sales.
• brand tortilla chips exceed $250 million, global expansion
nears 20 countries.
• PepsiCo announces plans to spin off its restaurant
businesses as an independent publicly-traded company, sell its
food distribution company and focus on its core beverage and
snack food businesses.
• The spin-off is completed October 6, 1997. Shareholders
receive one share in the new restaurant company, Tricon
Global Restaurants, Inc., for every 10 shares they hold in
PepsiCo, Inc.
• PepsiCo is now a $20 billion company with approximately
140,000 employees worldwide.
• Pepsi-Cola introduces “Nothing else is a Pepsi” theme line.
• Pepsi-Cola is top ad scorer in Super Bowl.
• Mountain Dew sponsors the Grammy Awards. Theme line
is “Been There, Done That, Tried That.”
• The Pepsi Lipton Tea Partnership debuts new ad campaign
emphasizing “There’s only one Original.”
• Pepsi-Cola introduces Smooth Moos Smoothies, a line of
low-fat dairy shakes.
• Roger Enrico succeeds Wayne Calloway as chief executive
officer and chairman of the Board of Directors.

1995 Milestones :
• Pepsi-Cola introduces “Nothing else is a Pepsi” theme line.
• Pepsi-Cola is top ad scorer in Super Bowl.
• Mountain Dew sponsors the Grammy Awards. Theme line
is “Been There, Done That, Tried That.”
• The Pepsi Lipton Tea Partnership debuts new ad campaign
emphasizing “There’s only one Original.”
• Pepsi-Cola introduces Smooth Moos Smoothies, a line of
low-fat dairy shakes.
• 7Up International launches 7UP Ice Cola, a new clear cola.
• Frito-Lay aggressively expands its low/no-fat snack
segment. Baked Lays is introduced.
• Frito-Lay tests Baked Tostitos, Rold Gold Fat Free Pretzels,
Ruffles Reduced Fat Potato Chips and Tostitos fat-free salsas
and black bean dip brands. Campaign line is “Taste the fun, not
the fat.”
• PepsiCo will introduce Lay’s brand potato chips in 20
markets throughout the world.

1994 Milestones :
• Pepsi-Cola is first major soft drink maker to begin
producing and distributing its product in Vietnam
• Pepsi—Cola launches its sports drink All Sport. It is sold in
2001.
• Pepsi-Cola International acquires Indian company, its first
big bottling plant in Bombay.
• Doritos is introduced to the United Kingdom, marking the
creation of a new “global brand.”
• Frito-Lay and K.C. Masterpiece Original Brand Barbecue
Sauce Original launches Lay’s Masterpiece brand Barbecue
Flavor Potato Chips, marking the first time Lay’s has entered
into a co-branding agreement.
• PepsiCo and Starbucks form the North American Coffee
Partnership to jointly develop ready-to-drink coffee beverages.
• Pepsi-Cola licenses the Citrus Hill trademark from The
Procter & Gamble Co. to launch a line of fountain juices and
drinks.
• China gets cheese-less Cheeotos, the first time a major
snack-food brand will be produced in China for Chinese tastes.
• Reba McEntire becomes first celebrity to appear nationally
on a Frito-Lay package.
• Frito-Lay nationally launches new baked Rold Gold Fat
Free Thins Pretzels, the first fat free reduced sodium pretzel
introduced by the company.
• Wake Forest University names its School of Business and
Accountancy in honor of Wayne Calloway.
• PepsiCo sales reach $30.4 billion. There are 470,000
employees worldwide, making PepsiCo the third largest
employer.

1993 Milestones :
• Frito-Lay launches new Doritos brand Tortilla Thins. Within
five months of launch, Tortilla Thins breaks into the ranks of
the 10 largest-selling snack chips in the U.S
• After a 27-year absence, Pepsi returns to Broadway with
the lighting of a spectacular new neon sign in Times Square.

• Both PepsiCo beverages and snack food operating profits

pass the $1 billion mark.
• Pepsi-Cola introduces freshness dating.
• Frito-Lay introduces Baked Tostitos brand Tortilla Chips.
• Pepsi introduces “The Cube,” an innovative 24-can
multipack, that satisfies growing consumer demand for
convenient large size soft drink packaging.
• PepsiCo acquires East Side Mario’s Restaurants Inc. It sells
the 40 units in 1997.
• PepsiCo acquires D’Angelo Sandwich Shops chain, which is
sold in 1997.
• Pepsi-Cola International introduces Pepsi Max, a soft drink
with unique blend of sweeteners that delivers maximum cola
taste in a no-sugar product.
• Frito-Lay nationally launches Wavy Lay’s Original and Au
Gratin flavors.
• Pepsi-Cola introduces Aquafina bottled water into test
market.
 1992 Milestones :
• PepsiCo purchases an equity interest in California Pizza
Kitchen. It is sold in 1997.
• Pepsi-Cola introduces new “Gotta Have It” advertising
theme and launches the “Gotta Have It” card.
• Frito-Lay and General Mills agree to merge snack food
businesses in Europe.
• Frito-Lay introduces reformulation of Doritos brand Nacho
Cheesier flavored tortilla chips.
• Frito-Lay presents network Lay’s/Ruffles advertising the
first in 10 years.
• Frito-Lay enlists George Foreman for Doritos advertising.
• Pepsi introduces new slogan “Be Young - Have Fun - Drink
Pepsi.”
• Pepsi-Cola begins distribution of Lipton’s line of ready-to-
drink teas nationwide.

1991 Milestones :
• PepsiCo acquires an equity interest in Wedel SA, the
leading manufacturer of chocolate and confectionery in Poland
Snacks now include operations in 23 countries.
• Pepsi-Cola introduces a new logo, its eighth in 93 years.
Advertising features rap singer MC Hammer.
• Pepsi-Cola forms joint venture with Thomas J. Lipton Co. to
develop and market tea-based drinks. p
• Frito-Lay launches Sunchips, its first multigrain snack.
• Frito-Lay introduces Chee tos Paws
• Frito-Lay introduces Tostitos brand Restaurant-Style
tortilla chips.
• Ray Charles teams up with the Uh-Huh Girls. The slogan
for Diet slogan Pepsi is modified to “You Got The Right One
Baby, Uh-Huh!”
• PepsiCo purchases an equity position in Carts of Colorado,
Inc., the leading manufacturer and marketer of mobile
merchandising equipment. It is sold in 1995.

1990 Milestones :
• PepsiCo acquires a controlling interest in Gamesa,
Mexico’s largest cookie company.
• Frito-Lay advertising for Doritos brand tortilla chips
features talk celebrity Jay Leno.
• PepsiCo signs the largest commercial trade agreement in
history with the Soviet Union.
• PepsiCo profits exceed $1 billion for the first time.

1989 Milestones :
• PepsiCo acquires Walkers Crisps and Smith Crisps, two of
the United Kingdom’s leading snack food companies.
• PepsiCo acquires Smartfood ready-to-eat popcorn
business.
• PepsiCo enters top 25 of Fortune 500 ranking with sales of
$15.4 10, billion, it is number 23. The company has more than
300,000 employees.

1988 Milestones :
• Pepsi-Cola International enters a landmark joint venture
agreement in India.
• Renewed accord with the Soviet Union extends PepsiCo
trade relationships.
• Hostess Frito-Lay, a major new partnership in Canada, is
formed with Hostess Foods in Canada.
• “Chase,” a four-part Pepsi ad featuring Michael Jackson in
his first-ever episodic commercial, airs during the Grammy
awards and becomes the most-watched commercial in
advertising history.
• Pepsi-Cola runs first paid advertisement on Soviet TV
during “Pozner in America,” a joint US-Soviet production.
• Worldwide retails sales of Doritos brand tortilla chips hit
$1 billion. It is the world’s largest selling snack chips brand.
• PepsiCo introduces SharePower Stock Optio program for
all employees, becoming the first large corporation to award
stock options to virtually all full-time employees.

1987 Milestones :
• “Mustang,” a Diet Pepsi commercial, becomes the first ad
ever to appear in a home video cassette. The cassette, “Top
Gun,” becomes the largest-selling video ever.
• Machine, David Bowie and Tina Turner.
• Frito-Lay pioneers the use of hand-held computers for
marketing.

1986 Milestones :
• Wayne Calloway becomes chairman of the Board of
Directors and chief executive officer in May when Donald M.
Kendall retires.
• The corporation is reorganized and decentralized.
Beverage operations are combined under PepsiCo Worldwide
Beverages; snack food operations are combined under PepsiCo
Worldwide Foods.
• Shareholders approve reincorporation of PepsiCo in North
Carolina.
• PepsiCo stock splits three-for-one.
• PepsiCo purchases Kentucky Fried Chicken, the leader in
the quick service chicken market. KFC was founded by Colonel
Harland Sanders. Colonel Sanders began franchising the
company in 1952. KFC is spun off along with Pizza Hut and
Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997.
• PepsiCo purchases Seven-Up International, the third
largest franchise soft drink operation outside the United States
• PepsiCo passes $10 billion in sales.
• PepsiCo is listed on the Tokyo stock exchange.

• Chester Cheetah makes his prime-time television debut

for Frito-Lay with a fully animated commercial for Cheeotos
cheese flavored snacks.
• “Dew it Country Cool, “ becomes new slogan for Mountain
Dew.
• Diet Pepsi gets a new logo.
• Pepsi-Cola acquires Mug Root Beer.
• Pepsi-Cola sponsors the first Western-produced consumer
commercial in the Soviet Union, appearing during the Goodwill
Games.
• PepsiCo Board of Directors visits the People’s Republic of
China to mark the opening of Pepsi’s second bottling plant in
Chi
• Bottling in China.
• Frito-Lay introduces Santitas brand restaurant style tortilla
chips.

1985 Milestones :
• PepsiCo is now the largest company in the beverage
industry. The company has revenues of more than $7.5 billion,
more than 137,000 employees.
• Pepsi-Cola products are available in nearly 150 countries
and territories around the world. Snack food operations are in
10 international markets.
• Frito-Lay expands into new headquarters in Plano, Texas.
• PepsiCo’s first line of sweet snacks, Sonrics, is added in
Mexico.
• The cola war takes “one giant sip for mankind,” when a
Pepsi “space can” is successful tested aboard the space
shuttle.
• Pepsi’s successful “Entertainment Marketing” strategy is
extended, with singers Lionel Richie and Tina Turner and actor
Michael J. Fox, among others.
• Pepsi distributes products in China.

1984 Milestones :
• PepsiCo is restructured to focus on its three core
businesses: soft drinks, snack foods and restaurants.
Transportation and sporting goods businesses are sold.
• Wayne Calloway becomes president of PepsiCo.
• Diet Pepsi is reformulated with 100% NutraSweet.
• Slice and Diet Slice, the first major soft drinks with fruit
juice, are introduced.
• Pepsi-Cola makes advertising history as Michael Jackson
and his brothers usher in a new generation of Pepsi-Cola
advertising in two of the most eagerly-awaited television
commercials featuring music marketing. Pepsi becomes “The
Choice of a New Generation.”
• Herman W. Lay Award of Excellence established at Frito-
Lay to recognize world-class selling excellence.

1983 Milestones :
• The Bottler Hall of Fame is established to recognize the
achievement and dedication of international bottlers.
• “Dew It to It,” theme is incorporated to brand Mountain
Dew.

1982 Milestones :
• Pepsi Free and Diet Pepsi Free, the first major brand
caffeine-free colas, are introduced.
• Inauguration of the first Pepsi-Cola operation in China.

1981 Milestones :
• PepsiCo passes $7 billion in sales.
• Tostitos brand crispy round tortilla chips are introduced by
Frito-Lay.
• PepsiCo Fitness Center is completed; making PepsiCo one
of the most advanced companies in the area of employee
health and fitness.
• Frito-Lay begins nutritional labeling on a national basis
• ”Pepsi’s got your taste for life(“ is the new campaign.
• PepsiCo and China reach agreement to manufacture soft
drinks, with agreement production beginning in 1982.
• PepsiCo launches PepsiCo Food Systems (PFS), its
restaurant supply company. PFS is sold to AmeriServe in 1997.
• “Give me a Dew” succeeds the ,,, sloan “Reach for the
Sun, Reach for slogan a Mountain Dew.”
 1980 Milestones :
• PepsiCo Food Service International (PFSI) is formed to
focus on overseas development of restaurants.
• PepsiCo now has 111,000 employees.
• First presentation of the international Donald M. Kendall
Bottler-of the-Year Award.
• Frito-Lay begins nationwide roll-out of Grandma’s brand
cookies.
• Garden designer Russell Page (1906-1985) begins to
extend the gardens at PepsiCo.

1979 Milestones :
• Opening of PepsiCo Research and Technical Center in
Valhalla, N.Y.
• PepsiCo reaches $5 billion in sales.
• PepsiCo’s international snack food operations continue to
grow. It is now larger than Frito-Lay at the time of its merger
with Pepsi-Cola
• Pepsi’s new campaign, “Catch that Pepsi Spirit!” reflects
the upbeat campaign, attitude of an increasingly positive
America
• “Hello Sunshine” campaign remains basically intact,
theme line is changed to “Reach for the Sun, Reach for
Mountain,Dew.”
• Pepsi introduces twelve-pack cans.

1978 Milestones :
• Taco Bell is acquired. Taco Bell was established in the mid
1960s by Glen Bell. It is spun off along with Pizza Hut and KFC
businesses as Tricon Global Restaurants, Inc. in 1997. Later
becomes YUM.

1977 Milestones :
• PepsiCo acquires Pizza Hut, Inc. Pizza Hut was founded in
1958 by Dan and Frank Carney. It is spun off along with Taco
 Bell and KFC businesses as Tricon Global Restaurants, Inc. in
1997.
• PepsiCo passes the $3 billion mark in sales.
• PepsiCo stock splits three-for-one.

1976 Milestones :
• The Pepsi Challenge, introduced in Dallas, Tex. in 1975,
becomes a national campaign. Around the nation, consumers
select Pepsi-Cola as the best tasting cola.
• PepsiCo adopts Code of Worldwide Business Conduct.
• Pepsi-Cola becomes the single largest selling soft drink
brand sold in U.S. supermarkets. Advertising campaign is
“Have a Pepsi day!” “Puppies,” becomes one of America’s best-
loved ads.

1975 Milestones :
• PepsiCo has 49,000 employees
• Pepsi Light, with a distinctive lemon taste, is introduced as
an alternative to traditional diet colas.
• “Hello Sunshine” becomes the slogan for Mountain Dew

1974 Milestones :
• PepsiCo sales pass the $2 billion mark.
• Pepsi-Cola becomes the first American consumer product
to be produced, marketed and sold in the former Soviet Union.

1973 Milestones :
• Foods International, later called PepsiCo Foods
International (PFI) and subsequently named Frito-Lay
International, is established to market snack foods around the
world.
• Individualism flourishes, Pepsi advertising picks up on the
movement, plays it back as “Join the Pepsi people, feelin’ free.”
• The third Mountain Dew slogan appears “Put A Little
Yahoo in Your Life.”
 1972 Milestones :
• Mountain Dew, acquired by Pepsi-Cola in 1964, switches
its advertising and package graphics from hillbillies to action-
oriented scenes. Sales climb and Mountain Dew will become
one of the 10 best-selling soft drinks in the United States
• Don Kendall announces agreement making Pepsi-Cola the
first foreign product sold in the then U.S.S.R. PepsiCo is given
exclusive rights to import Stolichnaya Russian vodka in the U.S.

1971 Milestones :
• PepsiCo Chief Executive Officer Donald M. Kendall
assumes the position of chairman of the Board of Directors on
the retirement of Herman W. Lay. Lay maintains an active role
in the corporation until his death December 6, 1982.
• Andrall E. Pearson is appointed president of PepsiCo, a
position he holds until his retirement in 1984.

1974 Milestones :
• PepsiCo sales pass the $2 billion mark.
• Pepsi-Cola becomes the first American consumer product
to be produced, marketed and sold in the former Soviet Union.

1973 Milestones :
• Foods International, later called PepsiCo Foods
International (PFI) and subsequently named Frito-Lay
International, is established to market snack foods around the
world.
• Individualism flourishes, Pepsi advertising picks up on the
movement, plays it back as “Join the Pepsi people, feelin’ free.”
• The third Mountain Dew slogan appears “Put A Little
Yahoo in Your Life.”

1972 Milestones :
• Mountain Dew, acquired by Pepsi-Cola in 1964, switches
its advertising and package graphics from hill scenes. Sales
climb and Mountain Dew will become one of the 10 best-selling
soft drinks in the United States.
• Don Kendall announces agreement making Pepsi- Cola the
first foreign product sold in the then U.S.S.R. PepsiCo is given
exclusive rights to import Stolichnaya Russian vodka in the U.S.

1971 Milestones :
• PepsiCo Chief Executive Officer Donald M. Kendall
assumes the position of chairman of the Board of Directors on
the retirement of Herman W. Lay. Lay maintains an active role
in the corporation until his death December 6, 1982.
• Andrall E. Pearson is appointed president of PepsiCo, a
position he holds until his retirement in 1984.

1970 Milestones :
• PepsiCo sales pass the $1 billion mark. The company has
36,000 employees.
• PepsiCo moves from New York City to new world
headquarters in Purchase, N.Y. The new corporate
headquarters feature a building by one of America’s foremost
architects, Edward Durrell Stone (1902-1978), set on a campus
of 144 acres amid an outdoor sculpture garden.
• Frito-Lay begins a program of expansion. Over the next
decade, the company opens, on average, more than one new
plant a year.
• W.C. Fritos is introduced as Frito-Lay’s new advertising
mascot.
• Wilson Sporting Goods, a top name in sports equipment,
joins PepsiCo. It is divested in 1985.
• Pepsi introduces the industry’s first two-liter bottle.
• Pepsi is the first company to respond to consumer
preference with lightweight, recyclable, plastic bottles.

1969 Milestones :
• Bold, modem Pepsi-Cola packaging using red, white and
blue is using introduced. “You’ve got a lot to live, Pepsi’s got a
lot to give,” becomes the advertising theme.
• Frito-Lay introduces Funyuns brand onion flavored snacks.
• Mountain Dew changes its slogan to “Get That Barefoot
Feelin’ Drinkin’ Mountain Dew.”
 1968 Milestones :
• North American Van Lines (NAVL), a premier
transportation company, joins PepsiCo. NAVL remains a strodng
contributor to PepsiCo until it is divested in 1984.

1967 Milestones :
• Pepsi Generation advertising, “Come Alive! You’re in the
Pepsi Generation” campaign that named and claimed a whole
generation (1963-67), introduces a new theme: “Taste that
beats the others cold. Pepsi pours it on!”

1966 Milestones :
• Doritos brand tortilla chips are introduced. They are
destined to become the most popular snack chip in the U.S.
• Pepsi enters Japan and Eastern Europe.

1965 Milestones :
• 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. 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 is chairman of the Board of Directors of the new company;
Donald M. Kendall is president and chief executive officer. The
new company reports sales of $510 million and has 19,000
employees.

Pepsi in India
By most accounts, Pepsi gained entry to India in 1988 by
creating a joint venture with the Punjab government-owned
Punjab Agro Industrial Corporation (PAIL) and Voltas India
Limited. This joint venture marketed and sold Lehar Pepsi until
1991 when the use of foreign brands was allowed; Pepsi bought
out its partners and ended the joint venture in 1994.
Othersclaim that firstly Pepsi was banned from import in India,
in 1970, for having refused to release the list of its ingredients
and in 1993, the ban was lifted, with Pepsi arriving on the
market shortly afterwards. These controversies are a reminder
of “India’s sometimes acrimonious relationship with huge
multinational companies.” Indeed, some argue that Coke and
Pepsi have “been major targets in part because they are well-
known foreign companies that draw plenty of attention.” In
2003, the Centre for Science and Environment (CSE), a non-
governmental organization in New Dehli, said aerated waters
produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and Coca-Cola, contained toxins
including lindane, DDT, malathion and chlorpyrifos —pesticides
that can contribute to cancer, a breakdown of the immune
system and cause birth defects. Tested products included
Coke, Pepsi, Seven Up, Mirinda, Fanta, Thumbs Up, Limca,
Sprite. CSE found that the Indian-produced Pepsi’s soft drink
products had 36 times the level of pesticide residues Permitted
under European Union regulations; Coca Cola’s 30 times. CSE
said it had tested the same products in the US and found no
such residues. However, this was the European standard for
water, not for other drinks. No law bans the presence of
pesticides in drinks in India.Coca Cola and PepsiCo angrily
denied allegations that their products manufactured in India
contained toxin levels far above the norms permitted in the
developed world. But an Indian parliamentary committee, in
2004, backed up CSE’s findings and a government-appointed
committee is now trying to develop the world’s first pesticide
standards for soft drinks. Coke and PepsiCo opposed the move,
arguing that lab tests aren’t reliable enough to detect minute
traces of pesticides in complex drinks. On Decernee—7, 2004,
India’s Supreme Court ruled that both Pepsi and competitor
Cocola must label all cans and bottles of the respective soft
drinks with a can’§itrner warning after tests showed
unacceptable levels of residual pesticides.Both companies
continue to maintain that their products meet all international
safety standards without yet implementing the Supreme Court
ruling. As of 2005, Coke and Pepsi together hold 95% market
share of soft-drink sales in India. Pepsi has also been alleged to
practice “water piracy” due to its role in exploitation of ground
water resources resulting in scarcity of

drinking water for the natives of Pudussery panchayat in the

Palakkad distict in Kerala, India. Local residents have been
pressuring the government to close down the Pepsi unit in the
village.
Coca-Cola controlled the Indian market until 1977, when the
Janata Party beat the Congress Party of then Prime Minister
Indira Gandhi. T o punish Coca-Cola’s principal bottler, a
Congress Party stalwart and longtime Gandhi supporter, the
Janata government demanded that Coca-Cola transfer its syrup
formula to an Indian subsidiary (Chakravarty, 43). Coca-Cola
balked and withdrew from the country. India, now left without
both Coca-Cola and Pepsi, became a protected market. In the
meantime, India’s two largest soft-drink producers have gotten
rich and lazy while controlling 80% of the Indian market. These
domestic producers have little incentive to expand their plants
or develop the country’s potentially enormous market . Some
analysts reason that the Indian market may be more lucrative
than the Chinese market. India has 850 million potential
customers, 150 million of whom comprise the middle class,
with disposable income to spend on cars, VCRs, and
computers. The Indian middle class is growing at 10% per year.
To obtain the license for India, Pepsi had to export $5 of locally-
made products for every $1 of materials it imported, and it had
to agree to help the Indian government to initiate a second
agricultural revolution. Pepsi has also had to take on Indian
partners. In the end, all parts involved seem to come out
ahead: Pepsi gains access to a potentially enoalTys market;
Indian bottlers will get to serve a market that is expanding
rapidly Pecauise of competition; and the Indian consumer
benefits from the competition fibm abroad and will pay lower
prices. Even before the first bottle of Pepsi hit the shelves, local
soft drink manufacturers increased the size of their bottles by
25% without raising costs.
From Joint Venture to Fully-Owned Subsidiary Pepsi is no longer
a joint venture company with its Indian partners. Taking full
advantage of liberalised policies, it has taken full control of
Pepsi Foods. In 1994, Pepsi made a offer to both Voltas and
PAIC to buy their equity at ‘attractive’ terms. Voltas sold all its
shares to Pepsi while PAIC, being a public enterprise, was
forced to pull out and now it holds less than 1 percent of the
total equity in Pepsi Foods Ltd. Instead of taking strict, action
against Pepsi for not following its commitments, the Indian
government has given more concessions to it in the post-
liberalisation period. For instance, it has allowed Pepsi to
increase its turnover of beverages component to beyond 25
percent, and Pepsi is also no longer restricted by its
commitment to export 50 percent of its turnover. Recently the
government also allowed PepsiCo to set up a new company in
India called PepsiCo India Holdings Pvt.Ltd, a wholly owned
subsidiary of PepsiCo International. Surprisingly, the new
company is also engaged in beverage manufacturing, bottling
and exports activities as Pepsi Foods Ltd. All the new
investments by the PepsiCo International have been
channelised through this new venture. It now handles 28
bottling plants with a sales turnover of Rs 500 crores which is
higher than Pepsi Foods’s turnover of Rs.375 crore in 1996.
(The Financial Express, April 21, 1997). Although the financial
performance of both these companies in India has not been
creditable so far, with total accumulated losses close to Rs.350
crore (except small surplus in 1996), yet it has been successful
in achieving significant market share and brand royalty in India.
The company in recent years has not only bought over bottlers
in different parts of India but also bought Dukes, a popular soft-
drink brand in western India to consolidate its market share. It
has also shrewdly consolidated its position through aggressive
marketing and advertising in India. According to surveys
conducted by many market research agencies, Pepsi now holds
over 40
percent share in Indian soft drink market. In 1995 alone, the
company’s beverage business grew 50 percent, well ahead of
the market which expanded by 20 percent. Another important
recent shift in Pepsi’s marketing strategy has been its focus on
Cola over other non-Cola brands. “We have single- mindedly
focused on brand Pepsi” admits Rishi, Vice-President,
Marketing, and Pepsi. (Business India, January 15-28, 1996). At
the international level, PepsiCo International has been focusing
more on India where the consumption of soft drinks is expected
to increase many-fold which is only three ounces per person
flow as compared to 200 ounces in Europe and over 300
ounces in North America. But, at the same time it is not
realized that there is a vast difference between the purchasing
power of an average Indian and North American as it takes an
Indian 1.5 hours of work to be able to buy a bottle of Pepsi
whereas for a North American, it takes less than 5 minutes.
This experience of eight years clearly shows that Pepsi, totally
preoccupied with selling soft drinks in India, has broken
promises. The responsibility of implementation of commitments
cannot be left to Pepsi alone. One should expect the state
machinery to intervene and enforce these commitments on
Pepsi. Surprisingly, there is a total silence on the part of state
machinery.

PEPSI COMPANY IN UTTAR PRADESH

Uttar Pradesh, which has spread of two 2,94,416sq. Km. as

geographical area i.e. about 8.9% of India’s total geographical
area and 16.44% of total population still lives in rural area of
the state.

Pepsi company has divided North India in three regions viz.

Western, Central and Eastern region. The Central and Eastern
regions are know as UPCOBO( Uttar Pradesh Company Owned
Both Operations) whereas western region is known as
FOBO(Franchise Owned Bottling Operation)
The company has three bottling units (COBO) in Uttar Pradesh
on at Satharia (Allahabad), another at Kanpur Dehat and third
at bajpur.UPCOBO has five warehouseLucknow, Gorakhpur,
Kanpur, Allahabadand Bareilly. Warehouse are mainly for
storing finished Pepsi products from where the distribution
takes place through direct and indirect routes. Direct routes in
markets area where Pepsi supplies its products through the
warehouse vans .

Where indirect routes cover those market area where the

company appoints it’s distribution who supply in the market.

The company in U.P. operates it’s direct routes ony in two cities
i.e. Luck now and Kanpur . The rest of area is covered through
indirect routes of distribution.