History & Origin . . . . . . . . . . . . . . . . . . . 3

Early Evolution . . . . . . . . . . . . . . . . . . . .4

Global Expansion . . . . . . . . . . . . . . . . . 5

Modern Business . . . . . . . . . . . . . . . . . . 7

Company Structure . . . . . . . . . . . . . . . 9

Recent Efforts . . . . . . . . . . . . . . . . . . . .10

Company DNA . . . . . . . . . . . . . . . . . . 14

Summary . . . . . . . . . . . . . . . . . . . . . . . 15

Social Media Accounts . . . . . . . . . . . 16

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Caleb D. Bradham became convinced his drink relieved upset

stomachs and the pain from peptic ulcers, so in 1898 he had

christened it Pepsi-Cola.

In 1902, the first year of operation, he shifted around 2,000 gallons

of syrup and the next year ran advertising campaigns -

Exhilarating, Invigorating, Aids Digestion - which quadrupled sales

to almost 8,000 gallons. This volume was 1% of Coca-Cola’s sales

in the same year.

In January 1922, with liabilities five times assets on the balance

sheet, Caleb lost control to a Wall Street firm and left the

beverages business for good.

In 1931, Pepsi-Cola was in no fit state to survive the Great

Depression thus, it was declared bankrupt once again.

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Charles C. Guth, the president of the Loft Inc. chain of

confectionery stores, and after not being given a bigger discount

after selling Coke in his stores, bought the Pepsi-Cola firm for

around $12,000 and kicked Coke out of his stores.

Conceived the idea of partnering with bottlers that enabled him to

sell twice the amount of Pepsi over a bottle of Coke.

Walter Staunton Mack Junior, succeeded Guth and took a riskier

approach in promoting Pepsi through advertising and jingles that

paid off by creating a unique personality for the brand, they also

discontinued using beer bottles and instead adopted a unique

Pepsi bottle.

Alfred Steele brought Pepsi to a whole new level. He improved its

quality by setting-up standards of the cola’s production as well as

its quality in terms of taste and consistency.

By the time Steele died in 1959, Pepsi’s sales had tripled. 4

In 1934 Pepsi opened its first bottling plant outside the US,

Montreal serviced French Canada, where Pepsi holds the lead over

Coca-Cola to this day. Their next plants were in Cuba and the

Dominican Republic.

In 1940 Walter Mack poached William B. Forsythe from the Coca-

Cola Export Corporation. As a result, between 1945 and 1950,

Forsythe opened up fifty-six foreign markets for the Pepsi-Cola

brand. This increased export sales by 45% in 1946 and another

70% the year after. The countries in Latin America, South Africa,

the Middle East and the Far East all became strong markets for

Pepsi.

Future president Donald Kendall, in the 1950s, pushed the

company’s export side. During his first three years, Pepsi

International opened a new bottling plant abroad at the staggering

rate of one every 11.5 days. 5

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The outcome was that an international bottler network numbering

70 in 1957 had risen to 278 by 1962. Pepsi was now available in

nearly a hundred countries and international sales accounted for

half of Pepsi-Cola’s total revenue.

Eventually, attention turned to Europe and bottling partnerships

with big local players such as Britain’s Schweppes, France’s Perrier

and the Netherland’s Heineken.

In 1965, Donald M. Kendall initiated the diversification of brands

and products that Pepsi offered by merging with Frito-Lay; it now

became a beverage and snack company.

By 1970’s, PepsiCo continued to acquire different companies,

specifically quick service restaurant chains, where they were

initially falling a bit short, such as Taco Bell in 1977 and Pizza Hut

in 1978.

Frito-Lay was also able to reap the benefits of the merger as their

sale grew exponentially locally and internationally.

Grossing $7 billion by 1981, PepsiCo solidified itself in its three

divisions: soft drinks, snack foods and restaurants.

In later years, PepsiCo continued to dominate the cola wars and

the turning point was in 1985 when Coke decided to change their

beloved formula which led to dissatisfaction amongst its

consumers.

PepsiCo continued to acquire new beverage brands such as 7-Up.

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At the end of the 80’s, PepsiCo’s sales totaled to $11 Billion, the

highest ever recorded in the company’s history.

During the 1990’s, PepsiCo continued to broaden its current roster

of beverage products by latching onto emerging trends such as:

Ready to drink teas and coffee and unique flavors for Lays

Not only reached $20 Billion in sales but also directly influenced

the sales growth of American supermarkets, mass merchandisers

and drug stores more than any other packaged goods company in

1998.  

In 2003, PepsiCo was the fourth-largest food and beverage

company in the world behind Nestlé, Kraft and Unilever.

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Four Main Divisions:

PepsiCo Americas Foods

PepsiCo Americas Beverages

PepsiCo Europe

PepsiCo Asia, Middle East and Africa

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2004

Formed a single cohesive PepsiCo.

2005

Acquired several European snack companies and took full

ownership of Snack Ventures Europe, Europe’s largest snack food

company

Finalized their business process transformation project for 2006,

The Smart Spot Initiative, which included a reformulation of 250

product lines and promotion of active living to its consumers

2006

Experienced continuous growth despite sales declines in the US, as

they were performing outstandingly in their Chinese, South-

American and Russia markets

Launched the healthier lines of their snacks and beverages as part

of their smart spot initiative which led to a two-thirds growth in

sales for North America 10

2007

Corporate restructuring due to CEO change

Dismembering of PepsiCo Americas Food & Beverages back to

their separate brands

PepsiCo International was still the largest contributor to the

company’s sales and profit growth

2008

Reorganization of PepsiCo into three divisions to cover North –

South America, UK/Europe and Middle East/Africa/Asia

Total company operating profit was down due to the economic

recession as well as the costly major restructuring

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2009 Merging of PepsiCo, Pepsi Bottling Group and Pepsi Americas , to

create a more agile, efficient, innovative and competitive beverage

system which led to the valuation of PepsiCo at $60 Billion Declines yet again were experienced in the North American market

due to rebranding efforts of two flagship beverages: Aquafina and

Gatorade Stalling of sales were experienced in China, while in the rest of

Asia/Middle East/Africa snacks and beverage volumes grew

2010 Growth in most of the snack division per region was evident except

in North America Doubled sales and overall improvement was evident in PepsiCo

Americas due to: Inclusion of the bottled sales rather than concentrate sales in

the acquired bottlers

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The sales volume of brands distributed by the acquired bottlers

and not owned by PepsiCo The organic sales volume performance of PepsiCo brands

Announced an increased R&D investment in sweetener

technologies, next-generation processing and packaging and

nutritional products for the coming years

2011 Acquiring the bottlers, WBD and the enhanced agreement with the

Dr. Pepper Snapple Group gave a good gloss to the top-line

numbers, up almost $9 billion In Asia/Middle East/Africa, snacks were doing better than

beverages, up 15% versus 5% Latin America Foods pushed forward in its advantaged markets of

Mexico and Brazil In Europe (discounting the huge impact of the WBD acquisition

that added 31% to the division’s volume), underlying snacks grew

volume by 4%, thanks to the huge Walkers UK unit and 1% in

beverages 13

Has the DNA of a Brawler wherein from the time the company was

established to its current success as the world’s second largest

food and beverage company, it constantly battled and overcame

struggles and challenges.

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The rise of PepsiCo within one person’s lifespan from serial

bankrupt to the world’s second largest and North America’s largest

food and beverage company is one of the business success stories

of the modern era

PepsiCo sets targets to reduce bad ingredients by 2020

PepsiCo needs to get back to the attitude that got it to where it is

today

Website: www.pepsico.com/ Facebook: www.facebook.com/PepsiCo

 Instagram: instagram.com/pepsi Twitter: www.twitter.com/pepsico  Youtube: www.youtube.com/user/PepsiCoVideo

 

LinkedIn: www.linkedin.com/company/pepsico

Google+: plus.google.com/u/0/111883881632877146615/posts

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