The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the world's 2
carbonated soft-drink maker. The company's soft drinksinclude Pepsi, Mountain Dew, and Slice. It owns Frito-Lay, the world's 1
maker of snacks such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles).Cola is not the company's only beverage: PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices(licensed) and Lipton ready-to-drink tea (licensed from Unilever). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). Wal-Mart is PepsiCo's largest customer,accounts for 9% of sales.PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks and juice sales help to quench the company's thirst for bottom-line growth. Frito-Lay'ssalty snacks rule the US market; the snack division accounts for about one-third of company sales.The company announced a major restructuring in 2007, splitting its two businessunits (Pepsi-Cola North America and PepsiCo International) into three: one for USfood, a second for US drinks, and a third for food and drinks abroad. CEO of PepsiCo Indra Nooyi said that due to the company's healthy growth in recent years,PepsiCo is approaching a size that can be better managed as three units rather thantwo.The split looks like this: PepsiCo Americas Foods includes Frito-Lay NorthAmerica, Quaker, and the Latin American food and snack businesses; PepsiCoAmericas Beverages includes North American beverage sales, including Gatoradeand Tropicana; and PepsiCo International includes business in the UK, the rest of Europe, Asia, the Middle East, and Africa.With a saturated soft-drink market, the company continues to try new iterations: In2007 the company introduced its first vitamin-enhanced water, called AquafinaAlive. It signed a licensing agreement with Ben & Jerry's in 2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal with Starbucks for thedistribution of the coffee purveyor's Ethos water brand. Hot on the heels of Coke'sintroduction of Blak, in 2006 Pepsi launched a coffee-flavored cola, named, PepsiMax Cino, in the UK.Venturing further into the non-cola category, PepsiCo acquired sparkling juicecompanies IZZE and Naked Juice in 2006. It also began selling Fuelosophy, asmoothie drink, at organic grocery store chain Whole Foods, and struck a deal todevelop products with juice maker Ocean Spray Cranberries.