TABLE OF CONTENTS 1. 2. • • • • • • • Overview of Pepsi Co. 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. 5. 6. 7. Product Profile Research Methodology Data Introduction Findings • Graphical Analysis • SWOT Analysis • Recommendation Bibliography Annexure

8. 9.

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 sevenbuilding 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 sevenbuilding 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 mostrecognized 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 notfrom-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.


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2007 Milestones : PepsiCo signs Maria Sharapova for International endorsement of Gatorade and Tropicana Tropicana launches Tropicana Healthy Heart with Omega3s, 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, vitaminenhanced 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

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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

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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

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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).


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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 multiyear 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 :

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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

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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 CalciumEnriched 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

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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


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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 flavorsOrange, Lime and Strawberry. Tropicana Pure Premium announces sponsorship of Disney’s award-winning show The Lion King TropicariaAg Pure PremiumAS introduces 14-oz. singleserve resealable ‘bottle you can take with you for the on-thegoconsumers. 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.


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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.


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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

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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 Caramelflavored 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

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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.

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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.

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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.

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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 triangleshaped 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.

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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.

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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.

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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.

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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-todrink 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 :


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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 :

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“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.


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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.

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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.

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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 FritoLay 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.”

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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

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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 bestloved 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.”

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1972 Milestones : Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package graphics from hillbillies to actionoriented 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.

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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.”

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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.

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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 wellknown foreign companies that draw plenty of attention.” In 2003, the Centre for Science and Environment (CSE), a nongovernmental 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 locallymade 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 postliberalisation 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 softdrink 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.

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