Pepsico Case Study

PepsiCo is an American multinational food and beverage corporation that was founded in 1965 when the Pepsi-Cola Company merged with Frito-Lay Inc. This corporation excels in developing and distributing snack foods, beverages, and other products. PepsiCo diversified further by purchasing Pizza Hut Inc., Taco Bell Inc., and KFC which are three restaurant chains. In 1998 PepsiCo acquired the Tropicana and Dole juice brands from the Seagram Company. This corporation merged with Quaker Oats Company in 2001 to form Quaker Foods and Beverages.

PepsiCo has a food and beverage portfolio that includes 22 brands that each generates more than $1 billion in estimated annual sales. The primary product brand categories include Pepsi-Cola, Frito-Lay snacks, Gatorade sports beverages, Quaker Oats products, and Tropicana fruit juices. As of 2012 PepsiCo’s product mix consisted of 63 percent foods and 37 percent beverages. The worldwide product lines include several hundred brands that have been estimated to produce nearly $108 billion in cumulative annual retail sales. To be designated as a food and beverage industry main brand PepsiCo had to reach annual sales of over $1 billion which it achieved in 2009.

PepsiCo has a significant presence in Mexico through its acquisition of the Gamesa cookie company and the Sabritas snack company. The corporation has a division in Europe that includes all operations in Europe and South Africa. PepsiCo also has a Middle East and Africa division that includes all operations in Asia, the Middle East, and Africa. The 2013 annual sales for PepsiCo were as follows: PepsiCo America Foods 24,573,550,000; PepsiCo America Beverages 21,252,800,000; PepsiCo Europe 13,947,150,000; and PepsiCo AMEA 6,641,500,...

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...d sales more than $1.26 billion as of 2013. Through demonstrating concern for consumer health and taste preferences PepsiCo is more likely to have continued success in this market. There are other opportunities for PepsiCo in India such as producing soya-based and milk based beverages. By providing nutrients that are lacking in the local consumer’s diets PepsiCo is showing that they have a concern for their consumers’ overall health and well-being.

In conclusion I have learned a lot about PepsiCo through the process of this assignment. I have learned about how the corporation adapts it products to local tastes and preferences in multiple markets. Also I have learned that PepsiCo has concern for the health and well-being of their customers. This corporation has a proven track record and has demonstrated a willingness to adapt its product for continued success.