/Creator (Workiva) The court ruling stated that the "percentage of pesticides" found in the tested beverages was "within the tolerance limits subsequently prescribed in respect of such product," since at the time of testing "there was no provision governing pesticide adulteration in cold drinks. /Type /Page In response to this initiative, PepsiCo, along with food manufacturers Campbell Soup, Coca-Cola, General Mills, and others in an alliance referred to as the "Healthy Weight Commitment Foundation", announced in 2010 that the companies will collectively cut one trillion calories from their products sold by the end of 2012 and 1.5trillion calories by the end of 2015. On a per-share basis, the Purchase, NY-based firm reported net income of $0.95. But opting out of some of these cookies may affect your browsing experience. In the same year, slightly more than 60 percent of PepsiCo's beverage sales came from its primary non-carbonated brands, namely Gatorade and Tropicana.[48]. << /Parent 2 0 R /Type /Page The cookie is used to store the user consent for the cookies in the category "Analytics". [164], Following the 2022 Russian invasion of Ukraine, a number of companies faced growing pressure to halt operations in Russia after not initially doing so. endobj 32 0 obj 3 0 obj [129], PepsiCo's India operations were met with substantial resistance in 2003 and again in 2006, when an environmental organization in New Delhi made the claim that, based on its research, it believed that the levels of pesticides in PepsiCo (along with those from rival The Coca-Cola Company), exceeded a set of proposed safety standards on soft drink ingredients that had been developed by the Bureau of Indian Standards. [93] In 1956 PepsiCo paid US$2million for the previous building at the site. /Contents 40 0 R In 2019 PepsiCo sued four small farmers in India US$142,000 each for growing a type of potato it says it owns. >> [74][75], Pepsico will market and distribute Starbucks products in several Latin American countries for 2016. [62], In addition to the production and sales of several worldwide Pepsi-Cola, Quaker Foods, and Frito-Lay beverage and food product lines (including Pepsi and Doritos), this segment of PepsiCo's business markets regional brands such as Mirinda, Kurkure, and Red Rock Deli, among others. This has resulted in KFC and Pizza Hut chains in the country to switch to Coca-Cola products. a4c7nGd;! z[C[@% {E]59/$anA5s`o We've detected you are on Internet Explorer. Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. /Resources 37 0 R This division also owns and produces the Pearl Milling Company brand, which as of 2009 was the top selling line of syrups and pancake mixes within this region. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. /MediaBox [0.0 0.0 612.0 792.0] << 7ef9rnZ+2g!C,q%^aj&:,I%E*fow72neYm6m|vp5~T oS*l'Cp#4SwX=Yv7` YPA <585\Iks%>!zlGEOtGz #|"yVy41wg4-YuEu$N7`GdyCJhRpzEB>G7 ]3NnqC9;BTjIwkbKx9[.ar}H1]9'*c2+(0GCny,W6wgiuh {TT"S1*U)>(V={^qzz3e2Kn+U https://www.barrons.com/articles/pepsico-stock-russia-ukraine-51646085700. << /MediaBox [0.0 0.0 612.0 792.0] EL!hA^5%4ejK!nGvmC58~PqLs3p16)+NYxO8|H*V0MO(A.v9Vp*r>J t+6-8aHO,@b:8=wlGxsVD{ >> In 2021, PepsiCo's operating profit from the region increased 43 per cent, primarily reflecting net revenue growth, a 31-percentage-point impact of the prior-year acquisition and divestiture-related charges associated with the acquisition of Pioneer Foods and productivity savings. [27] When it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food and beverage company in Russia. /MediaBox [0.0 0.0 612.0 792.0] In 2010 this acquisition was completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi Beverages Company. (1214536e15bb494686fa377d7d998952_46) [24 0 R /XYZ null 570 null] It was one of the last architectural works by Edward Durell Stone. "For 2022, we expect to deliver 6 per cent organic revenue growth, which is at the high-end of our long-term target range and implies a strong acceleration in our organic revenue growth on a two-year basis," he added. /Type /Page These impacts were partially offset by certain operating cost increases, including strategic initiatives and incremental transportation costs, an 8-percentage-point impact of higher commodity costs, primarily cooking oil and packaging material, and higher advertising and marketing expenses. Your support through more subscriptions can help us practise the journalism to which we are committed. PepsiCo also has formed partnerships with several beverage brands it does not own, in order to distribute or market them with its own brands. [63], This division contributed 35 percent of PepsiCo's net revenue as of 2015,[60] and involves the manufacture (and in some cases licensing), marketing and sales of both carbonated and non-carbonated beverages in North America. /Type /Page promotional (including digital), packaging, convenience, service, and the ability to effectively anticipate and respond to consumer preferences and trends, including an increased consumer focus on health, wellness, and sustainability and the continued acceleration of electronic commerce and other methods of distribution and purchase of products. [42], In March 2020, PepsiCo announced that it had entered into agreement to acquire Rockstar Energy for US$3.85 billion. [71], The division contributed 4 percent of PepsiCo's net revenues in 2015. [145], In a bid to reduce packaging consumption, in recent years the PepsiCoPartners launched as a service offering carbonated drinks dispensers within the US. >> Rs[$)l#%?~ 3}{0u7B|b*:0*?Ww"oBFp-PN@- Iep40oo[?BZ Other competitors for soda are RC Cola, Keurig Dr. Pepper, and independent brands varying by region. [60], PepsiCo began to expand its distribution in Europe in the 1980s, and in 2015 it made up 17 percent of the company's global net revenue. /Resources 33 0 R We believe in free, fair and credible journalism. /MediaBox [0.0 0.0 792.0 612.0] [161] In 2008, in accordance with guidelines adopted by the International Council of Beverages Associations, PepsiCo eliminated the advertising and marketing of products that do not meet its nutrition standards, to children under the age of 12. In 2021, PepsiCo and The Coca-Cola Company (TCCC) accounted for 22% and 19%, respectively, of the U.S. liquid soft drink category, based on estimated retail sales in channels measured by Information Resources, Inc. >> >> /Parent 2 0 R endobj 2022 Endeavor Business Media, LLC. As of January 2021, the company possesses 23 brands that have over US$1 billion in sales. 17 0 obj 16 0 R 17 0 R 18 0 R 19 0 R 20 0 R 21 0 R 22 0 R 23 0 R 24 0 R 25 0 R PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. Ramon Laguarta has been the chief executive of PepsiCo since 2018. [105] The main recipients of grants as part of the refresh project are community organizations with a local focus and nonprofit organizations, such as a high school in Michigan thatas a result of being selected in 2010received US$250,000 towards construction of a fitness room. [155], In response to shifting consumer preferences and in part due to increasing governmental regulation, PepsiCo in 2010 indicated its intention to grow this segment of its business, forecasting that sales of fruit, vegetable, whole grain, and fiber-based products will amount to US$30billion by 2020. We also use third-party cookies that help us analyze and understand how you use this website. 20 0 obj [6] The company was incorporated in Delaware in 1919. /Filter /FlateDecode << In November 2014, the firm's president Zein Abdalla announced he would be stepping down from his position at the firm by the end of 2014. /Contents 72 0 R [148] Beginning largely in 2006, PepsiCo began development of more efficient means of producing and distributing its products using less energy,[149] while also placing a focus on emissions reduction. endobj /Type /Page endobj Guth also used Loft resources to promote Pepsi, and moved the soda company to a location close by Loft's own facilities in New York City. /F 2 Pepsi will hold a 39% stake in the joint venture as well as having exclusive rights to the brand in the USA. /Title (Q4 2021 8-K - Exhibit 99.1)
/Resources 35 0 R Kindly visit the Manage my subscription page to discover the benefits of this programme. /Resources 45 0 R [38][39] Pepsi said they would end the suit if the farmers grew potatoes for them. /MediaBox [0.0 0.0 792.0 612.0] [65] In 2015, PepsiCo also introduced Stubborn Soda, a line of carbonated beverages without high fructose corn syrup.[66]. In 1959, the USSR held an exhibition of Soviet technology and culture in New York. /MediaBox [0.0 0.0 612.0 792.0] /Contents 48 0 R /Contents 58 0 R /Pages 2 0 R PepsiCo purchased the orange juice company Tropicana Products in 1998,[23] and merged with Quaker Oats Company in 2001,[24] adding with it the Gatorade sports drink line and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima, among others. Digital Editor. /Resources 49 0 R
"[118], PepsiCo's usage of water was the subject of controversy in India in the early and mid-2000s, in part because of the company's alleged impact on water usage in a country where water shortages are a perennial issue. We, however, have a request. [54] The deal also originated an erroneous factoid which claims that, after acquiring the Soviet fleet, PepsiCo briefly possessed one of the most powerful navies in the world.
[91] In 2017, Ramon Laguarta became the president and became its CEO in 2018. endobj << [65], PepsiCo's European presence expanded in Russia in 2009 as the company announced a US$1B investment,[77] and with its acquisition of Russian juice and dairy product brand Wimm-Bill-Dann Foods in December 2010 and Lebedyansky juice producer in March 2008. << Opportimes Copyright 2022, All Rights Reserved. >> [150] Also in 2009, PepsiCo began the test deployment of so-called "green vending machines", which reduce energy usage by 15 percent in comparison to average models in use. Due to Soviet restrictions on transporting rubles abroad, PepsiCo struck a barter deal whereby Stolichnaya vodka would be exchanged for Pepsi syrup. /Contents 52 0 R /Parent 2 0 R [137] PepsiCo's India unit received recognition on the basis of its water conservation and safety practices and corresponding results. /Prev 79 0 R (1214536e15bb494686fa377d7d998952_43) [23 0 R /XYZ null 572 null] >> /Count 0 [108] In late 2010, the refresh project was reported to be expanding to include countries outside of North America in 2011. endobj [126][127], As a result of water reduction practices and efficiency improvements, PepsiCo in 2009 saved more than 12billion liters of water worldwide,[128] compared to its 2006 water usage. /MediaBox [0.0 0.0 612.0 792.0] /C [0.0 0.0 0.0] As his drink gained popularity Bradham founded the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903. /Resources 75 0 R This copy is for your personal, non-commercial use only. Lay Company, produces the top-selling line of snack foods in the U.S. Its main brands in the U.S., Canada, and Mexico include Lay's and Ruffles potato chips; Doritos tortilla chips; Tostitos tortilla chips and dips; Cheetos cheese flavored snacks; Fritos corn chips; Rold Gold pretzels; Sun Chips; and Cracker Jack popcorn. [154] Sales of such healthier-oriented PepsiCo brands totaled US$10billion in 2009, representing 18 percent of the company's total revenue in that year. PepsiCo's net revenue in 2021 from Africa, Middle East, South Asia (AMESA) division, which includes India, was up 32.91 per cent to USD 6.07 billion as against USD 4.57 billion earlier. PepsiCo reported fourth-quarter profit of $1.32 billion. SodaStream, which PepsiCo acquired in 2018 is based in Israel, while Sabra (which PepsiCo co-owns with the Israeli food conglomerate Strauss Group) holds a 60% market share for hummus sales in the United States as of 2015. This cookie is set by GDPR Cookie Consent plugin. [125] In the United Kingdom, also in response to regional drought conditions, PepsiCo snacks brand Walkers' reduced water usage at its largest potato chip facility by 45 percent between the years 2001 and 2008. >> [165][166][167][168][169][170] On March 8, 2022, PepsiCo announced in a letter from CEO Laguarta the "suspension of the sale of Pepsi-Cola our global beverage brands in Russia, including 7 Up and Mirinda [and] capital investments and all advertising and promotional activities in Russia." PepsiCo Australia & New Zealand is located on the Pacific Highway, Chatswood, New South Wales.[84][85][86]. [22], The divestments concluding in 1997 were followed by multiple large-scale acquisitions, as PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of foods and beverages. [48] As a result of mergers, acquisitions, and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader product base, including foods, snacks, and beverages. [142][143] The use of resin to manufacture its plastic bottles has resulted in reduced packaging weight, which in turn reduces the volume of fossil fuels required to transport certain PepsiCo products. /Type /Page
PepsiCo have said to pilot production in 2012, and upon successful completion of the pilot, intends moving to full-scale commercialization, however in 2021 there are still no records of such bottles being produced. 27 0 obj :Ppa_XX[q qz7I~+V Earnings adjusted for both non-recurring and restructuring costs were $1.53 a share. This cookie is set by GDPR Cookie Consent plugin. endobj [60] Until November 2009, Christopher Furman, President of Ventura Foods Inc., occupied the position of Food Services CEO. For the best Barrons.com experience, please update to a modern browser. endobj % In 2009, PepsiCo had previously used the same strategy successfully in Argentina. /MediaBox [0.0 0.0 792.0 612.0] This copy is for your personal, non-commercial use only. /Contents 74 0 R endobj [40][41], On December 2, 2019, PepsiCo acquired the snacks brand, BFY Brands, who are going to be folded into the Frito-Lay division. The weight of Aquafina bottles was reduced nearly 40 percent, to 15grams, with a packaging redesign in 2009. >> In the convenient foods segment, its unit volume grew 38 per cent in the AMESA division, primarily reflecting a 35-percentage-point impact of its acquisition of South Africa-based company Pioneer Foods. 19 0 obj In response PepsiCo has made public comments on its commitment to minimizing their impact but has not released public information documenting progress on most of its public commitments. [130] PepsiCo denied the allegations, and India's health ministry has also dismissed the allegationsboth questioning the accuracy of the data compiled by the CSE, as it was tested by its own internal laboratories without being verified by outside peer review. endobj >> 23 0 obj l1s99YbpcPskI[k_9sg@;;\WwL[^&"/ Quaker Foods North America's operating profit grew 8%, primarily reflecting effective net pricing and productivity savings, partially offset by certain operating cost increases, including incremental transportation costs, a 14-percentage-point impact of higher commodity costs and higher advertising and marketing expenses. /Contents 64 0 R According to PepsiCo, its beverage and convenience food products are in highly competitive categories and markets and compete with products from international beverage and convenience food companies operating in multiple geographies, as well as regional, local, and private label manufacturers and economy brands and other competitors, including smaller companies that develop and sell micro-brands directly to consumers through e-commerce platforms or through locally sourced-focused retailers. 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[65] While PepsiCo owns its own manufacturing and distribution facilities in certain parts of these regions, more of this production is conducted via alternate means such as licensing (which it does with Aquafina), contract manufacturing, joint ventures, and affiliate operations. >> These cookies ensure basic functionalities and security features of the website, anonymously. PepsiCo /Length 2920 11 0 obj 6 0 obj /Type /Page This cookie is set by GDPR Cookie Consent plugin. As the result of a more recent focus on such efforts, "critics consider (PepsiCo) to be perhaps the most proactive and progressive of the food companies", according to former New York Times food industry writer Melanie Warner in 2010. PepsiCo (ticker: PEP) generated $3.4 billion of revenue in Russia in 2021, or 4% of its total sales of $79 billion. [121], In 2009, Tropicana (owned by PepsiCo) was the first brand in the U.S. to determine the carbon footprint of its orange juice product, as certified by the Carbon Trust, an outside auditor of carbon emissions. endobj << /Type /Page The Pioneer Foods acquisition is key to PepsiCo's growth strategy across the entire African continent. << /Resources 59 0 R Products made by this division are sold to independent distributors and retailers, and are transported from Frito-Lay's manufacturing plants to distribution centers, principally in vehicles owned and operated by the company. << By clicking Accept, you consent to the use of ALL the cookies. ", "Sabra 'well on its way' to becoming our next $1bn brand, says PepsiCo", "The Surprising Rise of Hummus in America", "IBISWorld - Industry Market Research, Reports, and Statistics", "PepsiCo President Zein Abdalla to retire", "American Can Co. Plans to Leave City; Plans to Go to Greenwich", "$2,000,000 is Paid for City Building; 500 Park Ave. In doing so, the factory used machinery that captured water naturally contained in potatoes, and used it to offset the need for outside water. /Type /Page [44], On August 3, 2021, Pespico announced that they have agreed to sell a majority stake in Tropicana, Naked and other North American juice brands to French private equity firm PAI Partners for US$3.3 billion, so that the company can concentrate on its healthy snack food business. /Parent 2 0 R [39] A number of Farmers' associations are requesting that the government get involved in the case stating that Pepsi is attempting to intimidate people. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Its beverage and convenience food products compete primarily on the basis of brand recognition and loyalty, taste, price, value, quality, product variety, innovation, distribution, advertising, marketing and activity. [106] Following the Gulf of Mexico oil spill in the spring of 2010, PepsiCo donated US$1.3 million to grant winners determined by popular vote. [K04ivw]~VHmeFRHF0s3/'$G1SL]zQTp]zQH lQ4+hv0XrQ+FNqMsH.jo$D=(2 endobj /MediaBox [0.0 0.0 612.0 792.0] /Contents 56 0 R Westchester Magazine stated "The buildings' square blocks rise from the ground into low, inverted ziggurats, with each of the three floors having strips of dark windows; patterned pre-cast concrete panels add texture to the exterior surfaces. /Type /Page "[135][136] In 2010, PepsiCo was among the 12 multinational companies that displayed "the most impressive corporate social responsibility credentials in emerging markets", as determined by the U.S. Department of State. %PDF-1.4 [140] The company has employed efforts to minimize these environmental impacts via packaging developments combined with recycling initiatives. In 2010, PepsiCo announced a goal to create partnerships that prompt an increase in the beverage container recycling rate in the U.S. to 50 percent by 2018. PepsiCo has maintained a philanthropic program since 1962 called the PepsiCo Foundation,[98] in which it primarily funds "nutrition and activity, safe water and water usage efficiencies,[99] and education," according to the foundation's website. /F 2 Auctioned to Pepsi-Cola, Which Will Build a New Headquarters", "Mayor Tried to Halt Move; City Attempted to Dissuade Pepsi", "Pepsi-Cola Planning to Leave City for Westchester; New Use for Club Fought Pepsi-Cola Plans Move From City", "PepsiCo Foundation Announces Support for Sustainable Water Initiatives", "PepsiCo's Journey Toward an Ethical and Socially Responsible Culture", "YMCA, PepsiCo Join Forces to Promote a Healthier America", "The Pepsi Refresh Project: A Thirst for Change", "Pepsi's Refresh Everything Vs. Coke's Live Positively: Which Soda Wins The War? PepsiCo also produces and distributes the soft drink 7UP in Europe via license agreement. It oversees the manufacturing, distribution, and marketing of its products. ), Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. endobj endobj /Count 0 /Type /Page /MediaBox [0.0 0.0 792.0 612.0] /C [0.0 0.0 0.0] /Parent 2 0 R /Parent 2 0 R <<
] Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. However, TCCC has a significant carbonated soft drink (CSD) share advantage in many markets outside the United States. [12], Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses outside of its core focus of packaged food and beverage brands; however it exited these non-core business lines largely in 1997, selling some, and spinning off others into a new company named Tricon Global Restaurants, which later became known as Yum! x[[oFer4nF#6j@ ]l]eA << Pepsi's net income dropped to $2.22 billion, or $1.60 a share, from $2.29 billion NAMA adds new experiences to expand Coffee Tea & Water event, launches registration, With their proven process, Advantage Refreshments is poised to support mainstream operators, Keurig Dr Pepper announces executive leadership team changes in advance of CEO transition, Kevin McAdams appointed president of Perdue Foods and COO of Perdue Farms, Primo Water Corporation announces acquisition of Highland Mountain Water. /Contents 36 0 R For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.