PepsiCo
| File:Pepsico-top r1 c1.gif | |
| Company type | Public (NYSE: PEP) |
|---|---|
| Industry | Food and beverage |
| Founded | 1965 |
| Headquarters |  Purchase, New York, USA |
Key people |  Indra Nooyi, Chairwoman, President & CEO |
| Products | Pepsi Tropicana Products Gatorade Lay's Doritos Frappuccino (for Starbucks) Mountain Dew |
| Revenue | 86,392,000,000 United States dollar (2022)  |
 $6.44 billion USD (2006) | |
| $5.64 billion USD (2006) 16.06% profit margin | |
| Total assets | 92,377,000,000 United States dollar (2021) |
Number of employees | 153,000(2005) |
PepsiCo, Incorporated (NYSE: PEP) is a global American beverage and snack company. The company manufactures, markets and sells a variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. Besides the Pepsi-Cola brands (including Mountain Dew), the company manufactures Quaker Oats, Gatorade, Frito-Lay, SoBe, and Tropicana. In many ways, PepsiCo differs from its competitor, The Coca-Cola Company, having almost three times as many employees and larger revenues (See comparison at Yahoo Finance). The company formed for distribution and bottling is The Pepsi Bottling Group (NYSE: PBG). PepsiCo is a SIC 2080 (beverage) company.
History
Headquartered in Purchase, New York, The Pepsi Cola Company began in 1898, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned Kentucky Fried Chicken, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998, and Quaker Oats in 2001.
Corporate governance
Current members of the board of directors of PepsiCo are Indra K Nooyi C.E.O., Robert E. Allen, Dina Dublon, Victor Dzau, Ray Hunt, Alberto Ibargüen, Arthur Martinez, Steven Reinemund, Sharon Rockefeller, James Schiro, Franklin Thomas, Cynthia Trudell, and River King.
On October 1, 2006, former Chief Financial Officer and President Indra Krishnamurthy Nooyi replaced Steve Reinemund as chief executive officer. Nooyi remains the corporation's president, and became Chairman of the Board in May 2007.
Mike White is the President of PepsiCo International Division. Some analysts predict after the appointment of Ms. Indra Nooyi, Mike White may choose to leave PepsiCo. The departure is expected by some to be after mid-2007, when White is eligible for a 7-figure payout.[citation needed]
Former top executives at PepsiCo
- Steven Reinemund
- John Sculley
- Donald M. Kendall
- D. Wayne Calloway
- Christopher A. Sinclair
- Roger Enrico
- Alfred Steele
- Joan Crawford
PepsiCo brands
PepsiCo owns five different billion-dollar brands. These are Pepsi, Tropicana, Frito-Lay, Quaker, and Gatorade. The company owns many other brands as well.
- Pepsi, including Pepsi-Cola, Caffeine-Free Pepsi, Diet Pepsi/Pepsi Light, Caffeine-Free Diet Pepsi, Caffeine-Free Pepsi Light, Wild Cherry Pepsi, Pepsi Lime, Pepsi Max, Pepsi Twist and Pepsi ONE.
- Other U.S. carbonated soft drinks, including Frawg, Mountain Dew, Mug Root Beer, Sierra Mist and Tropicana Twister Soda
- 7 Up (international distribution)
- Other U.S. beverages, including Aquafina (Flavor Splash, Alive, and Twist/Burst), Dole, Gatorade, Izze, Mountain Dew AMP, Propel Fitness Water, SoBe, Quaker Milk Chillers, Ben & Jerry's MilkShakes, and Tropicana
- Beverages marketed outside the U.S.: Alvalle, Concordia, Copella, Evervess, Fiesta, Frui'Vita, Fruko, Kas, Loóza, Manzana Corona, Manzanita Sol, Mirinda, Paso de los Toros, Radical Fruit, San Carlos, Shani, Teem, Triple Kola, and Yedigun
- Frito-Lay brands: Baken-ets, Barcel, Bocabits, Cheese Tris, Cheetos, Chester's, Chizitos, Churrumais, Cracker Jack, Crujitos, Doritos, Fandangos, Fritos, Funyuns, Gamesa, Go Snacks, James' Grandma's Cookies, Hamka's, Lay's, Miss Vickie's, Munchies, Munchos, Nik Naks, Oberto Meat Snacks, Quavers, Rold Gold, Ruffles, Rustler's Meat Sticks, Sabritas, Sabritones, Santitas, Smartfood, The Smith's Snackfood Company, Sonric's, Stacy's Pita Chips, Sun Chips, Tor-tees, Tostitos, Walkers, and Wotsits
- Quaker Oats brands: Aunt Jemima, Cap'n Crunch, Coqueiro, Crisp'ums, Cruesli, FrescAvena, King Vitaman, Life, Oatso Simple,Quake, Quisp, Rice-A-Roni, and Spudz
Partnerships
PepsiCo also has formed partnerships with several brands it does not own, in order to distribute these or market them with its own brands.
- Elma Chips, leader of the Brazilian chip's market
- Frappuccino
- Starbucks DoubleShot
- Starbucks Iced Coffee
- Mandarin (license)
- D&G (license)
- Lipton Brisk
- Lipton Original Iced Tea
- Lipton Iced Tea
- Ben & Jerry's Milkshakes
- Dole juices and juice drinks (license)
- Sunny Delight (produced by PepsiCo for Procter & Gamble)
Discontinued lines
- All Sport, a line of sports drinks. All-Sport was lightly carbonated; in contrast, rivals Gatorade and Coke-owned POWERade were non-carbonated. The 2001 purchase of Quaker Oats (in effect acquiring Gatorade) made All Sport expendable, and the brand was sold to another company.
- Crystal Pepsi, a clear version of Pepsi-Cola.
- FruitWorks: Flavors were Strawberry Melon, Peach Papaya, Tangerine Citrus, Apple Raspberry, and Pink Lemonade. Two other flavors, Passion Orange and Guava Berry, were available in Hawaii only.
- Josta: launched 1995, "with Guarana," the first energy drink launched by a major soft drink company in the US, is now the subject of a "Save Josta" campaign.
- Matika: Run in August 2001, it was a tea/juice alternative beverage, sweetened with Cane Sugar & containing Ginseng. Dragonfruit Potion, Magic Mombin, Mythical Mango, Rising Starfruit, Skyhigh Berry
- Mazagran: launched 1995
- Mr. Green (SoBe)
- Patio: line of flavored drinks (1960-late '70s)
- Pepsi Edge, a mid-calorie version of Pepsi-Cola.
- Pepsi Blue, a berry-flavored, blue version of Pepsi-Cola.
- Pepsi Kona: launched 1997, a coffee-flavored version of Pepsi-Cola.
- Slice, a line of fruit-flavored carbonated soft drinks.
- Smooth Moos: launched 1995, a flavored milk-based drink.
- Storm: launched March 15, 1998, replaced by Sierra Mist.
Former brands
PepsiCo owned a number of restaurant chains until it exited that business in 1997, selling some, and spinning off others into a new company Tricon Global Restaurants, now known as Yum! Brands, Inc.. PepsiCo also previously owned several other brands that it later sold.
- California Pizza Kitchen (bought 1992, sold back to original founders in 1997)
- Chevys Fresh Mex (bought August 1993, sold May 1997 to J. W. Childs Equity Partners)
- D'Angelo Sandwich Shops (sold August 1997 to Papa Gino's)
- East Side Mario's (United States franchises – bought December 1993, sold early 1997 to Marie Callender's)
- Hot 'n Now (bought in 1990, sold in 1997)
- Kentucky Fried Chicken (bought October 1986 from RJR Nabisco, spun off October 1997)
- North American Van Lines
- Pizza Hut (bought in 1977, spun off October 1997)
- Stolichnaya
- Taco Bell (bought in 1978, spun off October 1997)
- Wilson Sporting Goods
Diversity
PepsiCo received a 100 percent rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report. [1]
Tampering
During the summer of 1993, PepsiCo managed to stave off a runaway hoax pertaining to alleged product tampering. Syringes were claimed to have been found in cans of Diet Pepsi -- first in Seattle, then throughout the U.S. over the next few days. With the arrests of several of the fraudulent claimants, reports of found hypodermic needles ceased. PepsiCo's subsequent handling of the situation via carefully-worded press releases and VNRs is frequently cited as a textbook example of how exactly to handle falsely spread rumors about a company.[2]
Criticisms
PepsiCo in the US
USA Today reported in January 07 that Pepsi was putting Omega 3 oils (most common source: fish) in its orange juice. Vegetarians, vegans, and others cannot drink such juices.
PepsiCo in India
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. [3] Others claim 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 PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." [4]
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 The Coca-Cola Company, 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, 7 Up, Mirinda, Fanta, Thums Up, Limca, and 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. [5]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.
The Coca-Cola Company 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 pesticides 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 December 7, 2004, India's Supreme Court ruled that both PepsiCo and competitor The Coca-Cola Company must label all cans and bottles of the respective soft drinks with a consumer warning after tests showed unacceptable levels of residual pesticides.[citation needed]
Both companies continue to maintain that their products meet all international safety standards without yet implementing the Supreme Court ruling.[citation needed] As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India. [6] PepsiCo has also been alleged [who?] to practice "water piracy" due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the natives of Puthussery panchayat in the Palakkad district in Kerala, India. Local residents have been pressuring the government to close down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products.[7] In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, has been banned.[8] Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals.[9] Italic text
PepsiCo in Burma
From 1991 until 1997, PepsiCo was one of the most notable companies to do business in Burma. PepsiCo's business partner, Thein Tun, was a noted business partner of the ruling Burmese military junta, which has been alleged to be responsible for some of the worst human rights violations in the world.
PepsiCo's involvement prompted one of the biggest Burma-related boycotts in history. The campaign was on a par with those against Texaco and Unocal, running around the same time, and currently against Total Oil.
PepsiCo formally began their investment in Burma in November 1991 when they opened a bottling plant in the then-capital Rangoon, despite the call by Aung San Suu Kyi and the National League for Democracy for companies to avoid doing business in Burma until it returned to democracy. The campaign against Pepsi was initiated by the Asian-based Burma Rights Movement for Action. The campaign later gained growing strength in the West as Burmese human rights groups focused on campaigns against companies in Burma, including the oil giants Texaco, Unocal, Amoco, and Petro-Canada.
When Petro-Canada left Burma, Canadian and U.S. based Burmese democracy groups sharpened their focus on PepsiCo. The campaign received a massive boost when, in 1996, the Free Burma Coalition took the lead in forcing Pepsi out of American universities. This included the scrapping of a multi-million dollar deal at Harvard.
The campaign also spread to Europe, where the UK-based organization, Third World First, adopted the boycott. In response, in 1996, PepsiCo attempted to step out of the spotlight by selling its share of its Burmese joint venture to its partner but retaining its Burmese franchise agreement. Aung Sung Suu Kyi responded, "As far as we are concerned, Pepsi[Co] has not divested from Burma" and both human rights and environmental groups continued the pressure on Pepsi. Eventually, with the Burmese regime holding violent anti-democracy rallies and pressure from around the world mounting, PepsiCo announced in January 1997 that it would cut all ties with Burma. However, to this day, PepsiCo has not admitted that it was morally wrong to invest in Burma as some other companies have upon leaving the country. Pepsi boycott history
Wikipedia Editing Controversy
The new Wikiscanner.virgil.gr revealed that about a year ago someone at PepsiCo modified the Pepsi entry at Wikipedia by deleting many paragraphs of the entry that focused on its detrimental health effects. [10]
The PepsiCo Wikiedit fiasco was just one among many other self-promoting corporation Wikiedits.
Trivia
PepsiCo in France
In mid-July 2005, there were rumors of a bid approach by PepsiCo for Groupe Danone, although PepsiCo denied this intention.[11] However, in a display of Economic nationalism, the French government vowed it would do everything it could to protect companies in "strategic industries[12]" such as Danone from takeover.
Notes and references
- ^ Corporate Equality Index 2006
- ^ The Pepsi Product Tampering Scandal of 1993
- ^ "Coca-Cola India", Jennifer Kaye, Tuck School of Business at Dartmouth, 2004 (PDF)
- ^ "Coke, Pepsi lose fight over labels", Knight Ridder News, 9 December 2004
- ^ "Indian Coke, Pepsi Laced with Pesticides, Says NGO", Inter Press Service, August 5, 2003
- ^ "How a Global Web of Activists Gives Coke Problems in India", Wall Street Journal, July 7 2005
- ^ Cola sales down 10% on state bans
- ^ Kerala bans Coke and Pepsi
- ^ Indian state bans Pepsi and Coke
- ^ "Seeing Corporate Fingerprints in Wikipedia Edits", New York Times, August 19 2007
- ^ ""PepsiCo ne lance pas d'OPA sur Danone"". Associated Press. July 25, 2005.
{{cite web}}: Unknown parameter|access date=ignored (|access-date=suggested) (help)Template:Fr icon - ^ ""Le gouvernement interdira le rachat de groupes français dans les secteurs stratégiques"". Associated Press. Boursorama. August 29, 2005.
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