final project-Pepsi Co Annual Report.

| November 27, 2016

Question
This is a Final Project it has to be done as a PowerPoint presentation it has to have at least 30 slices well specified the things that should be considered for the project are the following:

Chp 1 – Frame Work
Chp 2 – Pyramid
Chp 3 – Internal Controls
Chp 4 – Irregular Items

Corporate Headquarters, PepsiCo, Inc.
700 Anderson Hill Road
Purchase, NY 10577
www.pepsico.com

PepsiCo, Inc.
2009 Annual Report

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2009 Annual Report

3/6/10 6:11 PM

Corporate Headquarters, PepsiCo, Inc.
700 Anderson Hill Road
Purchase, NY 10577
www.pepsico.com

PepsiCo, Inc.
2009 Annual Report

0 1

88045_Cover_R3.indd 2

2 0 1 3 0 3

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2009 Annual Report

3/6/10 6:11 PM

WHAT IS

At PepsiCo, Performance with Purpose means delivering
sustainable growth by investing in a healthier future for
people and our planet. As a global food and beverage
company with brands that stand for quality and are
respected household namesQuaker Oats, Tropicana,
Gatorade, Lays and Pepsi-Cola, to name a fewwe will
continue to build a portfolio of enjoyable and wholesome
foods and beverages, find innovative ways to reduce the
use of energy, water and packaging, and provide a great
workplace for our associates. Additionally, we will respect,
support and invest in the local communities where we
operate, by hiring local people, creating products designed
for local tastes and partnering with local farmers, governments and community groups. Because a healthier future
for all people and our planet means a more successful
future for PepsiCo. This is our promise.

Indra K. Nooyi, Chairman and Chief Executive Officer

Dear Fellow
Shareholders,
A Roman author said more than two millennia ago that anyone
can steer the ship when the sea is calm. The true test of endurance and stamina, he went on, is to navigate through rough
waters. Well, this year has seen some of the roughest possible
waters. The economic tempest of 2008 turned into the perfect
storm of 2009. Business was battered by volatile commodity
costs, frozen credit markets, fluctuating currencies and negative
GDP rates.
At PepsiCo, it seemed as if each day brought a new challenge.
Every one of them tested the strength and capabilities of our
organization. And I can declare with great pride that we passed
the test of endurance and stamina wonderfully well. We are a
company with great resilience. The ability of our associates to
pull together has left me excited about our momentum from
2009 into 2010 and beyond.
I dont think this is due just to the ability of all the great
people we have. I think our company is more than the sum of
those considerable parts; we draw extra strength from the solid
foundation of values and principles upon which PepsiCo is built.
The business community and government did a great deal of
soul-searching in the midst of the challenging global economy,
seeking to uncover the source of our worlds financial problems
and how best to share responsibility to address the situation. As
debates raged on issues that are core to a vibrant, functioning
marketplace, it became increasingly clear as the year went on
that corporate ethics are inexorably linked to a healthy economy.
A former American president, Dwight Eisenhower, once
said, A people that values its privileges above its principles
soon loses both. The same is true of a company, and the past
18 months have proved the wisdom of the remark.
Here at PepsiCo, we are fortunate to have embedded
Performance with Purpose into our culture and fabric long
before this current downturn. It is one of the fundamental
factors that kept PepsiCo on the leading edge in 2009.
Our basic beliefthat companies today must marry
performance with ethical concernsis resonating more than
ever before. For consumers, this translates into receiving value,
both economic and social, from trusted brands. For governments and the wider public, it translates into responsibility.

2

88045_AR09_Gatefold_1_2_R2.indd 2

This acknowledges that businesses have a responsibility to the
communities in which they operate, to the consumers they
serve and to the environment whose resources they use.
We provide great-tasting products, outstanding quality and
supreme value to consumers worldwide, while maintaining an
underpinning of integrity and responsibility. We have instilled this
fundamental belief into all of our brandsQuaker Oats, Tropicana,
Sabritas, Walkers, Lays, Gatorade and Pepsi-Cola, to name a few
to ensure we offer consumers a diverse portfolio of enjoyable and
wholesome nutritious foods and beverages. We take seriously
our responsibility to find innovative ways to use less energy,
water and packaging, our responsibility to hire local people in
the communities where we operate, create products designed
for local tastes, and partner with local producers and suppliers.
And, we have expanded our responsibility to partner with local
governments and NGOs to address the growing twin problems
of malnutrition and obesity acute to different parts of the world.
Performance with Purpose means that we will continue to
bring together what is good for society and what is good for
business. It encourages us to think globally while acting locally. It
has helped us break into new regions and harness local products
and talent to drive our growth. It drives our commitment to
increase diversity in the workforce, enhancing our ability to

PepsiCo, Inc. 2009 Annual Report

3/6/10 6:34 PM

PerFormance

Human SuStainability

PepsiCo Values
Our commitment:

To all our investors
Its a promise to strive to deliver superior,
sustainable financial performance.*

To the people of the world
Its a promise to encourage people to live healthier by
offering a portfolio of both enjoyable and wholesome
foods and beverages.*

Our GOals and COmmitments

Our GOals and COmmitments

toP line:
Grow international revenues at two times real global GdP growth rate.
Grow savory snack and liquid refreshment beverage market share in the
top 20 markets.
Sustain or improve brand equity scores for Pepsicos 19 billion-dollar
brands in top 10 markets.
rank among the top two suppliers in customer (retail partner) surveys
where third-party measures exist.

ProductS:
Provide more food and beverage choices made with wholesome ingredients
that contribute to healthier eating and drinking.
increase the amount of whole grains, fruits, vegetables, nuts, seeds and
low-fat dairy in our global product portfolio.
reduce the average amount of sodium per serving in key global food
brands by 25 percent.
reduce the average amount of saturated fat per serving in key global
food brands by 15 percent.
reduce the average amount of added sugar per serving in key global
beverage brands by 25 percent.

bottom line:
continue to expand division operating margins.
increase cash flow in proportion to net income growth over three-year
windows.
deliver total shareholder returns in the top quartile of our industry group.
corPorate Governance and valueS:
utilize a robust corporate Governance structure to consistently score in
the top quartile of corporate Governance metrics.
ensure our Pepsico value commitment to deliver sustained growth
through empowered people acting with responsibility and building trust.

To deliver SuSTAined GrOWTh
through emPOWered PeOPle
acting with reSPOnSibiliTY
and building TruST

Contribution Summary
Contribution Summary (in millions)

PepsiCo Foundation
Corporate Contributions

3.0

division Contributions

6.6

estimated in-Kind donations

Guiding Principles

2009
$ 27.9

Total

39.0
$76.5

We must always strive to:
Care for customers, consumers and the world we live in
Sell only products we can be proud of
Speak with truth and candor
balance short term and long term
Win with diversity and inclusion
respect others and succeed together

Environmental Profile
All of this annual report paper is Forest Stewardship Council (FSC)
certified, which promotes environmentally appropriate, socially
beneficial and economically viable management of the worlds forests.
PepsiCo continues to reduce the costs and environmental impact of
annual report printing and mailing by utilizing a distribution model
that drives increased online readership and fewer printed copies.
We hope you will agree this is truly Performance with Purpose
in action. You can learn more about our environmental efforts at
www.pepsico.com.

marketPlace:
encourage people to make informed choices and live healthier.
display calorie count and key nutrients on our food and beverage
packaging by 2012.
advertise to children under 12 only products that meet our global
science-based nutrition standards.
eliminate the direct sale of full-sugar soft drinks in primary and secondary
schools around the globe by 2012.
increase the range of foods and beverages that offer solutions for
managing calories, like portion sizes.
community:
actively work with global and local partners to help address global
nutrition challenges.
invest in our business and research and development to expand our
offerings of more affordable, nutritionally relevant products for
underserved and lower-income communities.
expand Pepsico Foundation and Pepsico corporate contribution
initiatives to promote healthier communities, including enhancing
diet and physical activity programs.
integrate our policies and actions on human health, agriculture and
the environment to make sure that they support each other.

* For more information on our goals and commitments, including a metrics baseline and timeline,
and risks, please visit www.pepsico.com.

88045_Cover_R4.indd 1

* For more information on our goals and commitments, including a metrics baseline and timeline,
and risks, please visit www.pepsico.com.

design: bCn Communications; Goodby, Silverstein & Partners
Printing: lithographix
Photography: Todd Plitt; Four Square Studio; James Schnepf Photography
Photo on bottom of page 29 property of YmCA of the uSA 2008.

3/7/10 1:23 PM

PerFormance

Human SuStainability

PepsiCo Values
Our commitment:

To all our investors
Its a promise to strive to deliver superior,
sustainable financial performance.*

To the people of the world
Its a promise to encourage people to live healthier by
offering a portfolio of both enjoyable and wholesome
foods and beverages.*

Our GOals and COmmitments

Our GOals and COmmitments

toP line:
Grow international revenues at two times real global GdP growth rate.
Grow savory snack and liquid refreshment beverage market share in the
top 20 markets.
Sustain or improve brand equity scores for Pepsicos 19 billion-dollar
brands in top 10 markets.
rank among the top two suppliers in customer (retail partner) surveys
where third-party measures exist.

ProductS:
Provide more food and beverage choices made with wholesome ingredients
that contribute to healthier eating and drinking.
increase the amount of whole grains, fruits, vegetables, nuts, seeds and
low-fat dairy in our global product portfolio.
reduce the average amount of sodium per serving in key global food
brands by 25 percent.
reduce the average amount of saturated fat per serving in key global
food brands by 15 percent.
reduce the average amount of added sugar per serving in key global
beverage brands by 25 percent.

bottom line:
continue to expand division operating margins.
increase cash flow in proportion to net income growth over three-year
windows.
deliver total shareholder returns in the top quartile of our industry group.
corPorate Governance and valueS:
utilize a robust corporate Governance structure to consistently score in
the top quartile of corporate Governance metrics.
ensure our Pepsico value commitment to deliver sustained growth
through empowered people acting with responsibility and building trust.

To deliver SuSTAined GrOWTh
through emPOWered PeOPle
acting with reSPOnSibiliTY
and building TruST

Contribution Summary
Contribution Summary (in millions)

PepsiCo Foundation
Corporate Contributions

3.0

division Contributions

6.6

estimated in-Kind donations

Guiding Principles

2009
$ 27.9

Total

39.0
$76.5

We must always strive to:
Care for customers, consumers and the world we live in
Sell only products we can be proud of
Speak with truth and candor
balance short term and long term
Win with diversity and inclusion
respect others and succeed together

Environmental Profile
All of this annual report paper is Forest Stewardship Council (FSC)
certified, which promotes environmentally appropriate, socially
beneficial and economically viable management of the worlds forests.
PepsiCo continues to reduce the costs and environmental impact of
annual report printing and mailing by utilizing a distribution model
that drives increased online readership and fewer printed copies.
We hope you will agree this is truly Performance with Purpose
in action. You can learn more about our environmental efforts at
www.pepsico.com.

marketPlace:
encourage people to make informed choices and live healthier.
display calorie count and key nutrients on our food and beverage
packaging by 2012.
advertise to children under 12 only products that meet our global
science-based nutrition standards.
eliminate the direct sale of full-sugar soft drinks in primary and secondary
schools around the globe by 2012.
increase the range of foods and beverages that offer solutions for
managing calories, like portion sizes.
community:
actively work with global and local partners to help address global
nutrition challenges.
invest in our business and research and development to expand our
offerings of more affordable, nutritionally relevant products for
underserved and lower-income communities.
expand Pepsico Foundation and Pepsico corporate contribution
initiatives to promote healthier communities, including enhancing
diet and physical activity programs.
integrate our policies and actions on human health, agriculture and
the environment to make sure that they support each other.

* For more information on our goals and commitments, including a metrics baseline and timeline,
and risks, please visit www.pepsico.com.

88045_Cover_R4.indd 1

* For more information on our goals and commitments, including a metrics baseline and timeline,
and risks, please visit www.pepsico.com.

design: bCn Communications; Goodby, Silverstein & Partners
Printing: lithographix
Photography: Todd Plitt; Four Square Studio; James Schnepf Photography
Photo on bottom of page 29 property of YmCA of the uSA 2008.

3/7/10 1:23 PM

EnvironmEntal SuStainability

talEnt SuStainability

To the planet we all share

To the associates of PepsiCo

Its a promise to be a good citizen of the world, protecting the
Earths natural resources through innovation and more ecient
use of land, energy, water and packaging in our operations.*

Its a promise to invest in our associates to help them succeed and
develop the skills needed to drive the companys growth, while
creating employment opportunities in the communities we serve.*

Our GOals and COmmitments

Our GOals and COmmitments

WatEr:
respect the human right to water through world-class efficiency in our operations,
preserving water resources and enabling access to safe water.
improve our water use efficiency by 20 percent per unit of production by 2015.
Strive for positive water balance in our operations in water-distressed areas.
Provide access to safe water to three million people in developing
countries by the end of 2015.

culturE:
Enable our people to thrive by providing a supportive and empowering
workplace.
Ensure high levels of associate engagement and satisfaction as compared
with other Fortune 500 companies.
Foster diversity and inclusion by developing a workforce that reflects
local communities.
Encourage our associates to lead healthier lives by offering workplace wellness
programs globally.
Ensure a safe workplace by continuing to reduce lost time injury rates, while
striving to improve other occupational health and safety metrics through
best practices.
Support ethical and legal compliance through annual training in our code of
conduct, which outlines Pepsicos unwavering commitment to its human rights
policy, including treating every associate with dignity and respect.

land and Packaging:
rethink the way we grow, source, create, package and deliver our products to
minimize our impact on land.
continue to lead the industry by incorporating at least 10 percent recycled
polyethylene terephthalate (rPEt) in our primary soft drink containers in the
u.S., and broadly expand the use of rPEt across key international markets.
create partnerships that promote the increase of u.S. beverage container
recycling rates to 50 percent by 2018.
reduce packaging weight by 350 million poundsavoiding the creation
of one billion pounds of landfill waste by 2012.
Work to eliminate all solid waste to landfills from our production facilities.
climatE changE:
reduce the carbon footprint of our operations.
improve our electricity use efficiency by 20 percent per unit of production
by 2015.
reduce our fuel use intensity by 25 percent per unit of production by 2015.
commit to a goal of reducing greenhouse gas (ghg) intensity for
u.S. operations by 25 percent through our partnership with the u.S.
Environmental Protection agency climate leaders program.
commit to an absolute reduction in ghg emissions across global operations.
community:
respect and responsibly use natural resources in our businesses and in the local
communities we serve.
apply proven sustainable agricultural practices on our farmed land.
Provide funding, technical support and training to local farmers.
Promote environmental education and best practices among our
associates and business partners.
integrate our policies and actions on human health, agriculture and the
environment to make sure that they support each other.

* For more information on our goals and commitments, including a metrics baseline and timeline,
and risks, please visit www.pepsico.com.

88045_AR09_Gatefold_1_2_R2.indd 1

carEEr:
Provide opportunities that strengthen our associates skills and capabilities
to drive sustainable growth.
become universally recognized through top rankings as one of the best
companies in the world for leadership development.
create a work environment in which associates know that their skills,
talents and interests can fully develop.
conduct training for associates from the frontline to senior management,
to ensure that associates have the knowledge and skills required to achieve
performance goals.
community:
contribute to better living standards in the communities we serve.
create local jobs by expanding operations in developing countries.
Support education through Pepsico Foundation grants.
Support associate volunteerism and community involvement through
company-sponsored programs and initiatives.
match eligible associate charitable contributions globally, dollar for
dollar, through the Pepsico Foundation.

* For more information on our goals and commitments, including a metrics baseline and timeline,
and risks, please visit www.pepsico.com.

3/7/10 1:32 PM

EnvironmEntal SuStainability

talEnt SuStainability

To the planet we all share

To the associates of PepsiCo

Its a promise to be a good citizen of the world, protecting the
Earths natural resources through innovation and more ecient
use of land, energy, water and packaging in our operations.*

Its a promise to invest in our associates to help them succeed and
develop the skills needed to drive the companys growth, while
creating employment opportunities in the communities we serve.*

Our GOals and COmmitments

Our GOals and COmmitments

WatEr:
respect the human right to water through world-class efficiency in our operations,
preserving water resources and enabling access to safe water.
improve our water use efficiency by 20 percent per unit of production by 2015.
Strive for positive water balance in our operations in water-distressed areas.
Provide access to safe water to three million people in developing
countries by the end of 2015.

culturE:
Enable our people to thrive by providing a supportive and empowering
workplace.
Ensure high levels of associate engagement and satisfaction as compared
with other Fortune 500 companies.
Foster diversity and inclusion by developing a workforce that reflects
local communities.
Encourage our associates to lead healthier lives by offering workplace wellness
programs globally.
Ensure a safe workplace by continuing to reduce lost time injury rates, while
striving to improve other occupational health and safety metrics through
best practices.
Support ethical and legal compliance through annual training in our code of
conduct, which outlines Pepsicos unwavering commitment to its human rights
policy, including treating every associate with dignity and respect.

land and Packaging:
rethink the way we grow, source, create, package and deliver our products to
minimize our impact on land.
continue to lead the industry by incorporating at least 10 percent recycled
polyethylene terephthalate (rPEt) in our primary soft drink containers in the
u.S., and broadly expand the use of rPEt across key international markets.
create partnerships that promote the increase of u.S. beverage container
recycling rates to 50 percent by 2018.
reduce packaging weight by 350 million poundsavoiding the creation
of one billion pounds of landfill waste by 2012.
Work to eliminate all solid waste to landfills from our production facilities.
climatE changE:
reduce the carbon footprint of our operations.
improve our electricity use efficiency by 20 percent per unit of production
by 2015.
reduce our fuel use intensity by 25 percent per unit of production by 2015.
commit to a goal of reducing greenhouse gas (ghg) intensity for
u.S. operations by 25 percent through our partnership with the u.S.
Environmental Protection agency climate leaders program.
commit to an absolute reduction in ghg emissions across global operations.
community:
respect and responsibly use natural resources in our businesses and in the local
communities we serve.
apply proven sustainable agricultural practices on our farmed land.
Provide funding, technical support and training to local farmers.
Promote environmental education and best practices among our
associates and business partners.
integrate our policies and actions on human health, agriculture and the
environment to make sure that they support each other.

* For more information on our goals and commitments, including a metrics baseline and timeline,
and risks, please visit www.pepsico.com.

88045_AR09_Gatefold_1_2_R2.indd 1

carEEr:
Provide opportunities that strengthen our associates skills and capabilities
to drive sustainable growth.
become universally recognized through top rankings as one of the best
companies in the world for leadership development.
create a work environment in which associates know that their skills,
talents and interests can fully develop.
conduct training for associates from the frontline to senior management,
to ensure that associates have the knowledge and skills required to achieve
performance goals.
community:
contribute to better living standards in the communities we serve.
create local jobs by expanding operations in developing countries.
Support education through Pepsico Foundation grants.
Support associate volunteerism and community involvement through
company-sponsored programs and initiatives.
match eligible associate charitable contributions globally, dollar for
dollar, through the Pepsico Foundation.

* For more information on our goals and commitments, including a metrics baseline and timeline,
and risks, please visit www.pepsico.com.

3/7/10 1:32 PM

WHAT IS

At PepsiCo, Performance with Purpose means delivering
sustainable growth by investing in a healthier future for
people and our planet. As a global food and beverage
company with brands that stand for quality and are
respected household namesQuaker Oats, Tropicana,
Gatorade, Lays and Pepsi-Cola, to name a fewwe will
continue to build a portfolio of enjoyable and wholesome
foods and beverages, find innovative ways to reduce the
use of energy, water and packaging, and provide a great
workplace for our associates. Additionally, we will respect,
support and invest in the local communities where we
operate, by hiring local people, creating products designed
for local tastes and partnering with local farmers, governments and community groups. Because a healthier future
for all people and our planet means a more successful
future for PepsiCo. This is our promise.

Indra K. Nooyi, Chairman and Chief Executive Officer

Dear Fellow
Shareholders,
A Roman author said more than two millennia ago that anyone
can steer the ship when the sea is calm. The true test of endurance and stamina, he went on, is to navigate through rough
waters. Well, this year has seen some of the roughest possible
waters. The economic tempest of 2008 turned into the perfect
storm of 2009. Business was battered by volatile commodity
costs, frozen credit markets, fluctuating currencies and negative
GDP rates.
At PepsiCo, it seemed as if each day brought a new challenge.
Every one of them tested the strength and capabilities of our
organization. And I can declare with great pride that we passed
the test of endurance and stamina wonderfully well. We are a
company with great resilience. The ability of our associates to
pull together has left me excited about our momentum from
2009 into 2010 and beyond.
I dont think this is due just to the ability of all the great
people we have. I think our company is more than the sum of
those considerable parts; we draw extra strength from the solid
foundation of values and principles upon which PepsiCo is built.
The business community and government did a great deal of
soul-searching in the midst of the challenging global economy,
seeking to uncover the source of our worlds financial problems
and how best to share responsibility to address the situation. As
debates raged on issues that are core to a vibrant, functioning
marketplace, it became increasingly clear as the year went on
that corporate ethics are inexorably linked to a healthy economy.
A former American president, Dwight Eisenhower, once
said, A people that values its privileges above its principles
soon loses both. The same is true of a company, and the past
18 months have proved the wisdom of the remark.
Here at PepsiCo, we are fortunate to have embedded
Performance with Purpose into our culture and fabric long
before this current downturn. It is one of the fundamental
factors that kept PepsiCo on the leading edge in 2009.
Our basic beliefthat companies today must marry
performance with ethical concernsis resonating more than
ever before. For consumers, this translates into receiving value,
both economic and social, from trusted brands. For governments and the wider public, it translates into responsibility.

2

88045_AR09_Gatefold_1_2_R2.indd 2

This acknowledges that businesses have a responsibility to the
communities in which they operate, to the consumers they
serve and to the environment whose resources they use.
We provide great-tasting products, outstanding quality and
supreme value to consumers worldwide, while maintaining an
underpinning of integrity and responsibility. We have instilled this
fundamental belief into all of our brandsQuaker Oats, Tropicana,
Sabritas, Walkers, Lays, Gatorade and Pepsi-Cola, to name a few
to ensure we offer consumers a diverse portfolio of enjoyable and
wholesome nutritious foods and beverages. We take seriously
our responsibility to find innovative ways to use less energy,
water and packaging, our responsibility to hire local people in
the communities where we operate, create products designed
for local tastes, and partner with local producers and suppliers.
And, we have expanded our responsibility to partner with local
governments and NGOs to address the growing twin problems
of malnutrition and obesity acute to different parts of the world.
Performance with Purpose means that we will continue to
bring together what is good for society and what is good for
business. It encourages us to think globally while acting locally. It
has helped us break into new regions and harness local products
and talent to drive our growth. It drives our commitment to
increase diversity in the workforce, enhancing our ability to

PepsiCo, Inc. 2009 Annual Report

3/6/10 6:34 PM

recruit the brightest and most talented associates from around
the world. And it helps keep us focused on staying strong over
the long term so that we are well-prepared to capitalize on all
growth opportunities. Most importantly, the promise of PepsiCo
is to continue to generate solid value for our shareholders.
PEPSICO DELIVERED SOLID FINANCIAL
PERFORMANCE IN 2009
Amidst the most challenging global macroeconomic environment in decades, we demonstrated the strength and resilience
of both our people and portfolio by delivering solid operating
performance and generating signicant operating cash ow.
Net revenue grew 5% on a constant currency basis.*
Core division operating prot rose 6% on a constant
currency basis.*
Core EPS grew 6% on a constant currency basis.*
Management operating cash ow, excluding certain items,
reached $5.6 billion, up 16%.*
And, we raised the annual dividend by 6%.
Let me oer a few highlights from 2009:
PepsiCo Americas Foods (PAF) had another exceptional
year with strong net revenue and operating prot growth despite
signicant commodity ination. We held or grew share across the
region, sustaining consumer momentum with solid innovation
and targeted value oerings.
Although all of Europe was hit hard by the economic
recession, PepsiCo Europe outpaced its peers and delivered
solid results through excellent revenue management, tight
cost controls and outstanding productivity.
PepsiCo Asia Middle East and Africa (AMEA) had another
excellent year, with solid net revenue and operating prot
growth driven by strong volume growth across the region, with
exceptional growth in our India beverage business.
PepsiCo Americas Beverages (PAB), which faced considerable category pressures in North America, continued to
make signicant progress in rejuvenating the entire beverage
portfolio. We successfully launched the Pepsi Refresh Everything
campaign, gained traction on our Gatorade transformation to G,
* Core results and core results on a constant currency basis are non-GAAP measures that exclude certain items.
Please refer to pages 91 and 92 for a reconciliation to the most directly comparable nancial measure in
accordance with GAAP.

and brought exciting innovation to market with the launch of
zero-calorie SoBe Lifewater and Trop50 orange juice beverage,
both naturally sweetened with puried stevia extract. We also
reached agreement on merging into PepsiCo our two anchor
bottlers, Pepsi Bottling Group and PepsiAmericas, in order to create a more agile, ecient, innovative and competitive beverage
system, which will enable us to extend our leadership position in
the North American Liquid Refreshment Beverage business.
With the merger of our anchor bottlers, PepsiCo will be a
nearly $60 billion company in terms of annual revenue. We are
the largest food and beverage business in North America and the
second-largest food and beverage business in the world, making
us a critical partner for all retailers. We will have a new business
structure and, as outlined below, clear strategies to support continued strong growthgrowth that will enable us to continue to
be both an attractive place to work and an attractive investment.
STRATEGIES TO DRIVE OUR GROWTH
We continue to focus on delivering top-quartile nancial performance in both the near term and the long term, while making
the global investments in key regions and targeted product
categories to drive sustainable growth. The next chapter in our
growth is founded on six long-term growth strategies:
1. Expand the Global Leadership Position of Our Snacks
Business. PepsiCo is the global snacks leader, with the No. 1
savory category share position in virtually every key region
across the globe. We have advantaged positions across the
entire value chain in more than 40 developed and developing regions in which we operate as we capitalize on local
manufacturing and optimized go-to-market capabilities in
each region, as well as the ability to introduce locally relevant
products using global capabilities. And we have signicant
growth opportunities as we expand our current businesses
in these regions, extend our reach into new geographies and
enter adjacent categories. Importantly, we will continue to
make our core snacks healthier through innovations in hearthealthier oil, sodium reduction and the addition of whole
grains, nuts and seeds.

PepsiCo, Inc. 2009 Annual Report

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