PepsiCo

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This article is about the company. For the soft drink, see Pepsi.

PepsiCo

Type Public (NYSE: PEP)

Food
Industry
Beverages
New Bern, North Carolina,
Founded
U.S. (1898)
Caleb Bradham
Founder(s) Donald M. Kendall
Herman W. Lay
Headquarters Purchase, New York, U.S.
Area served Worldwide
Indra Nooyi
Key people
(Chairperson and CEO)[1]
Products Pepsi
Diet Pepsi
Mountain Dew
AMP Energy
Aquafina
Sierra Mist
SoBe
Starbucks Frappuccino
Lipton Iced Tea
7up
 Mirinda
Izze
Tropicana Products
Copella
Naked Juice
Gatorade
Propel Fitness Water
Quaker Oats Company
Lay's
Doritos
Cheetos
Kurkure
Fritos
Rold Gold
Ruffles
Tostitos
Slice
Revenue US$44.3 billion
Operating
income US$7.3 billion

Net income US$6.24 billion

Total assets US$39.8 Billion (FY 2009)[2]
Total equity US$16.8 Billion (FY 2009)[2]
Employees 203,000 (2010)
PepsiCo Americas (PepsiCo
Ameri Food, PepsiCo
Divisions
Americas Beverages),
PepsiCo International
Website PepsiCo.com
PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American multinational
corporation headquartered in Purchase, New York, with interests in manufacturing
and marketing a wide variety of carbonated and non-carbonated beverages, as well
as salty, sweet and cereal-based snacks, and other foods. Besides the Pepsi brands,
the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked,
Tropicana, Copella, Mountain Dew, Mirinda and 7 Up (outside the USA).

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and
the company's beverage distribution and bottling is undertaken primarily by
associated companies such as The Pepsi Bottling Group (NYSE: PBG) and Pepsi
Americas (NYSE: PAS). PepsiCo is a SIC 2080 (beverage) company.
Contents
[hide]
1 History
2 Corporate governance
2.1 Former top executives at
PepsiCo
3 Lobbying
4 Pepsi Music
5 PepsiCo brands
5.1 Partnerships
5.2 Discontinued lines
5.3 Former brands
5.4 Diversity
5.5 Tampering
6 Criticisms
6.1 PepsiCo in India
6.1.1 Soft drinks market in
India
6.2 Consumption patterns in
India
6.3 PepsiCo in Burma
6.4 PepsiCo in Israel
7 Pepsi Bottlers
8 See also
9 Notes and references
10 External links
[edit] History

Headquartered in Purchase, New York, with Research and Development

Headquarters in Valhalla, The Pepsi Cola Company began in 1898 by a NC
Pharmacist and Industrialist Caleb Bradham, but it only became known as PepsiCo
when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, 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. In December 2005, PepsiCo surpassed Coca-Cola Company in
market value for the first time in 112 years since both companies began to
compete. [2]

[edit] Corporate governance

Pepsi-Cola Venezuela

Current members of the board of directors of PepsiCo are Indra Nooyi C.E.O., Robert
E. Allen, Dina Dublon, Victor Dzau, Ray Lee 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 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 Pepsi-Co International Division.

[edit] Former top executives at PepsiCo

Steven Reinemund

Roger Enrico

D. Wayne Calloway

John Sculley

Michael H. Jordan

Donald M. Kendall

Christopher A. Sinclair

Alfred Steele

[edit] Lobbying

In the US, working with its competitor Coca Cola Company, PepsiCo is a major
lobbying force working to gain favorable legislation for the beverage industry. In
2005, PepsiCo spent $740,000 on lobbying, in 2006, $880,318, in 2007, $1 million,
and in 2008, $1,176,000. In 2009, lobbying expenses rose to $4.2 million or nearly a
300 percent increase. Much of the increased lobbying expenses are due to the
industry’s fight against increased taxes on soft drinks.[3] For 2009, PepsiCo has 31
lobbyists at 8 different firms lobbying on its behalf.[4]

[edit] Pepsi Music

Pepsi Music is a promotional music label that is seen on Yahoohoo. It has many
parts like the Pepsi Mic Pass, the most famous in Houston, Texas. It also contracts
artists to advertise with Pepsi and other PepsiCo products.

Pepsi Musica is seen on the Latino channel Mun2, on the show, Pepsi Musica.

Green Label Sound is Mountain Dew's record label that gives free downloads
promoting unsigned artists.

[edit] PepsiCo brands

PepsiCo owns 5 different billion-dollar brands. These are Pepsi, Tropicana, Frito-Lay,
Quaker, and Gatorade. The company owns many other brands as well.

Pepsi, 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 Mountain Dew, Crush, Mug Root Beer,
Sierra Mist, Tropicana Twister Soda and Frawg,

7 Up (Globally, outside the USA)

Other U.S. beverages, including Aquafina (Flavor Splash, Alive, and Twist/Burst),
Tava, Dole, Gatorade, Izze, AMP Energy, Propel Fitness Water, SoBe, Quaker Milk
Chillers, and Tropicana

Beverages marketed outside the U.S.: Alvalle, Concordia, Copella, Evervess, Fiesta,
Frui'Vita, Fruko, H2OH!, Ivi, Junkanoo, Kas, Loóza, Manzana Corona, Manzanita Sol,
Mirinda, Paso de los Toros (drink), Radical Fruit, San Carlos, Schwip Schwap, 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, Ollie's Meat Snacks, Quavers, Rold Gold, Ruffles, Rustler's Meat
Sticks, Sabritas, Sabritones, Sandora, Santitas, Simba, Smartfood, The Smith's
Snackfood Company, Sonric's, Stacy's Pita Chips, Sun Chips, Tor-tees, Kurkure,
Tostitos, Walkers, and Wotsits
Quaker Oats brands: Aunt Jemima, Cap'n Crunch, Chewy Granola bars, Coqueiro,
Crisp'ums, Cruesli, FrescAvena, King Vitaman, Life, Oatso Simple, Quake, Quisp,
Rice-A-Roni, and Spudz

In 2005 PepsiCo launched Sting Energy Drink (carbonated) in Vietnam[5], and in

some Asian countries in 2010 including Pakistan, Philippines & Malaysia.

In 2007, Nooyi spent $1.3 billion on healthier-alternative brands like Naked Juice, a
California maker of soy drinks and organic juice.

Pepsico has also recently acquired a 50% stake in U.S.-based Sabra Dipping
Company.[6]

[edit] 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.

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 & juice drinks (license)

Sunny Delight (produced by PepsiCo for Sunny Delight Beverages)

FRS[7]

[edit] Discontinued lines

Teem, Pepsi's answer to Sprite and 7up, discontinued after PepsiCo bought 7up.

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.
Aspen Soda, an apple-flavored soft drink (late 1970s-early 80's)

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.

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 (soda): 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.

Smooth Moos: launched 1995, a flavored milk-based drink.

Storm: launched March 15, 1998, replaced by Sierra Mist.

Miranda Lime: Launched in the second half of the 1990 decade(in India) but failed

[edit] 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)
Hot 'n Now (bought in 1990, sold in 1997)

Jollibee (bought in 1994,sold in 1997)

KFC (bought October 1986 from RJR Nabisco, spun off October 1997 to form TriCon,
later Yum! Brands)

North American Van Lines

Pizza Hut (bought in 1977, spun off October 1997 to form TriCon, later Yum! Brands)

Stolichnaya

Taco Bell (bought in 1978, spun off October 1997 to form TriCon, later Yum! Brands)

Wilson Sporting Goods

[edit] Diversity

PepsiCo received a 100 percent rating on the Corporate Equality Index released by
the LGBT-advocate group Human Rights Campaign starting in 2004, the third year
of the report.[8]

[edit] 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. By June 15, 1993, consumers reported finding a bullet,
pins and screws in their Diet Pepsi. 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.[9]

[edit] Criticisms

This article needs additional citations for verification.

Please help improve this article by adding reliable references. Unsourced
material may be challenged and removed. (October 2009)
[edit] 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.[10] 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."[11]

In 2003, the Centre for Science and Environment (CSE), a non-governmental

organization in New Delhi, 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.[12] 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.

As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share
of soft-drink sales in India.[13] PepsiCo has also been accused by the Puthussery
panchayat in the Palakkad district in Kerala, India, of practicing "water piracy" due
to its role in exploitation of ground water resources resulting in scarcity of drinking
water for the panchayat's residents, who have been pressuring the government to
close down the PepsiCo unit in the village.[14]

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.[15] In the Indian state of
Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned
by the state government in 2006,[16] but this was reversed by the Kerala High
Court merely a month later.[17] Five other Indian states have announced partial
bans on the drinks in schools, colleges and hospitals.[18]

[edit] Soft drinks market in India

India is one of the top five markets in terms of growth of the soft drinks market. The
per capita consumption of soft drinks in the country is estimated to be around 6
bottles per annum in the year 2003. It is very low compared to the corresponding
figures in US (600+ bottles per annum). But being one of the fastest growing
markets and by the sheer volumes, India is a promising market for soft drinks.

The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co,
like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca,
Gold Spot and Thums Up when it entered Indian market for the second time. Pepsi
Co’s soft drink portfolio also consists of Miranda and 7Up along with Pepsi. The
market share of each of the company is more or less the same, though there is a
conflict in the estimates quoted by different sources [19]

The major ingredient in a soft drink is water. It constitutes close to 90% of the soft
drink content. Added to this, the drink also contains sweeteners, Carbon dioxide,
Citric Acid/Malic acid, Colors, Preservatives, Anti Oxidants and other emulsifying
agents, etc.[19]

[edit] Consumption patterns in India

In Tier 1, 2 and 3 cities in India, 29% of Indian consumers report consuming

carbonated beverages/soft drinks during a fixed time of the day suggesting
consumption has become a routine part of their day, with most consumption taking
place during the 'afternoon to evening' time period. Not surprisingly, consumption is
highest in Tier I cities such as Mumbai, Delhi, Kolkata, Chennai, Hyderabad and
Bangalore. The level of consumption is seen to increase with rising household
incomes (with the exception of the highest income level) while decreasing with age.
[20]

This section may contain original research. Please improve it by verifying the
claims made and adding references. Statements consisting only of original
research may be removed. More details may be available on the talk page.
(September 2009)
The Indian soft drinks market is not under any regulation. Prevention of Food
adulteration act 1954 does not include soft drinks. None of the BIS standards that
existed before August 2003 had any guidelines or set criteria for the residue levels
of pesticides in the soft drinks. But different lie agencies have set standards for the
residue levels of pesticides. The European Economic Community (EEC) sets the
maximum admissible concentration of individual pesticides and related products in
drinking water at 0.1 parts per billion to ensure that the toxicity is not dangerous to
human beings. For a few pesticides like aldrin, dieldin and heptachlor epoxide the
admissible limit is even more stringent, i.e., 0.03 parts per billion.[19]

[edit] PepsiCo in Burma

From 1991 until 1997, PepsiCo is 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.[21]

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 San 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.

[edit] PepsiCo in Israel

Until 1991 PepsiCo was not sold in Israel, for which it was criticised by many in the
United States who believed it was supporting the Arab boycott of Israel. PepsiCo
always denied this allegation, saying Israel was simply too small to support a
franchise. As a result, the Israeli market was taken over by Pepsi's rival Coca Cola,
and to this day Pepsi has a very small market share in Israel.[22][23]

[edit] Pepsi Bottlers

The Pepsi Beverages Company logo.

On August 4, 2009 PepsiCo announced that it had reached a final merging

agreement with its two largest bottlers The Pepsi Bottling Group, Inc and
PepsiAmericas, Inc both of which it had previously spun off in the 1990s. The total
cost of the transaction is estimated at $7.8 billion.[24]

The merger was approved by shareholders of both bottling companies on February

17, 2010 and was completed on February 26, forming a new wholly-owned division
of the PepsiCo North American Beverages unit, Pepsi Beverages Company (PBC).
Also included in the merger was a new agreement with the Dr Pepper Snapple
Group in which PBC would soon be taking over the bottling and distribution of the Dr
Pepper, Schweppes and Crush brands in those markets where they were formerly
distributed by PBG and PAS through a 20-year licensing deal (PBC's predecessors
have been bottling and distributing Crush in most of their markets since February
2009). It is currently unknown if and when PBC will also distribute Dr Pepper and
Schweppes in the rest of its territory (as those markets, such as the Chicago
market, also have DPS-owned bottlers serving those areas). Additionally, in those
areas of the US that are served by PBC- and DPS-owned bottlers, the bottling rights
to certain other DPS-owned brands such as Vernors and Hawaiian Punch would be
transferred to the DPS bottlers. The international operations of both former bottlers
were transferred directly to the wholly separate PepsiCo International unit.

[edit] See also

Pepsi Stuff

Cola wars

Pepsi Challenge

List of Pepsi types

Indra Nooyi

Caleb Bradham

Coca-Cola
[edit] Notes and references

^ http://www.pepsico.com/Company/Leadership.html#block_Indra K. Nooyi

^ a b Pepsico (PEP) annual SEC balance sheet filing via Wikinvest

^ http://www.opensecrets.org/lobby/clientsum.php?
year=2009&lname=PepsiCo+Inc&id=Center for Responsive Politics, Pepsi Co Inc,,
Nov 20, 2009

^ http://www.opensecrets.org/lobby/clientlbs.php?lname=PepsiCo+Inc&year=2009
Center for Responsive Politics, PepsiCo Inc, Nov 20, 2009

^ Pepsi's story in Vietnam

^ PepsiCo Buys 50% Stake in Sabra

^ "PepsiCo Secures FRS Healthy Energy Brand". Nutraceuticals World.(June 18,

2010).http://www.nutraceuticalsworld.com/contents/view/24756

^ 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, December 9, 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

^ "Pepsi gets reprieve in Kerala case", Rediff India Abroad, April 11, 2007

^ Cola sales down 10% on state bans

^ Sanjoy Majumder (2006-08-09). "Kerala bans Coke and Pepsi". BBC News.
http://news.bbc.co.uk/2/hi/south_asia/4776623.stm. Retrieved 2008-01-03.

^ K.C. Gopakumar (2006-09-23). "Kerala HC quashes ban on Coke and Pepsi". The
Hindu BusinessLine.
http://www.thehindubusinessline.com/2006/09/23/stories/2006092305340100.htm.
Retrieved 2008-01-03.

^ Indian state bans Pepsi and Coke

^ a b c CSE Report: Analysis of pesticide residues in soft drinks, August 2006

^ Store-Bought Non Alcoholic Beverages in India, June 2009

^ "A Historical Look at the Pepsico/Burma Boycott " in Boycott Quarterly (Summer
1997), online at
http://www.thirdworldtraveler.com/Boycotts/Hx_PepsiBurmaBoy.html [1]

^ GETTING IN TEMPO WITH PEPSI COLA (Jerusalem Post, 1991)

^ Snopes.com: Coca-Cola and Israel, March 13, 2007

^ "PepsiCo Reaches Merger Agreements with Pepsi Bottling Group and

PepsiAmericas ", online at http://www.pepsico.com/PressRelease/PepsiCo-Reaches-
Merger-Agreements-with-Pepsi-Bottling-Group-and-PepsiAmericas08042009.html

[edit] External links

Official website

PepsiCo India

PepsiCo UK

PepsiCo Benelux (Belgium/Netherlands/Luxembourg)

PepsiCo France

PepsiCo Germany

PepsiCo Spain

PepsiCo Canada

Yahoo! – PepsiCo, Inc. Company Profile

‘349’ consumer activist cleared in libel case filed by Pepsi

Coalition 349 Website - Philippines

http://www.sirpepsi.com/pepsi11.htm

Animation TV commercial - 15 sec campaign (Hungary)

Companies portal

[show]
v•d•e
PepsiCo, Incorporated

Corporate Indra Nooyi (Chairwoman and CEO) · Robert Allen · Dina

 Dublon · Victor Dzau · Ray Hunt · Alberto Ibargüen · Arthur
Directors Martinez · Steven Reinemund · Sharon Rockefeller · James
Schiro · Franklin Thomas · Cynthia Trudell · River King

Pepsi · Diet Pepsi · Pepsi Max · Jazz Diet Pepsi · Pepsi ONE · Kas ·
Mountain Dew · Manzanita Sol · Mirinda · Mug Root Beer · Sierra
Mist · Slice · AMP Energy · Aquafina · Ethos Water (under
Pepsi-Cola
license) · Lipton (Brisk · Iced Tea) (under license) · No Fear
(under license) · Ocean Spray (under license) · Frappuccino
(under license) · Starbucks (under license) · SoBe · Shani

Lay's · Ruffles · Doritos · Tostitos · Fritos · Cheetos · Rold Gold ·

Funyuns · Sun Chips · Cracker Jack · Munchos · Smartfood ·
Oberto (distributed) · Hostess · Lay's Stax · Miss Vickie's ·
Frito-Lay
Munchies · Walkers (Salt 'n' Shake · Frazzles · Quavers · Monster
Munch · Wotsits) · Sabritas · Smith's (Twisties · Burger Rings ·
Parker's · Nobby's) · Bluebird · Gamesa · Kurkure

Tropicana Tropicana · Dole (under license) · Naked · Copella

Quaker Instant Oatmeal · Cap'n Crunch · Life · Quisp · King

Quaker Oats Vitaman · Oh's · Aunt Jemima · Chewy Granola Bars · Rice-A-
Roni · Toddy

Gatorade Gatorade · Propel Fitness Water

Retrieved from "http://en.wikipedia.org/wiki/PepsiCo"

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companies of the United States | Companies established in 1969 | PepsiCo |
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Multinational companies

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Disclaimers

"Convincing India that it needs Western junk has not been easy." 1
- A New Internationalist Magazine Article, commenting on Pepsi's struggle to enter India,
in August 1988.
A Letter to Pepsi
In 1988, the New York office of the President of the multi-billion cola company PepsiCo
received a letter from India. The company had been trying for some time to enter the Indian
market - without much success.
The letter was written by George Fernandes
(Fernandes), the General Secretary of one of the
country's leading political parties, Janata Dal. He
wrote, "I learned that you are coming here. I am
the one that threw Coca-Cola out, and we are soon
going to come back into the government. If you
come into the country, you have to remember that
the same fate awaits you as Coca-Cola."2 This
development did not seem to be a matter that
could be ignored. PepsiCo's arch-rival and the
world's number one cola company, Coca-Cola,
had indeed been forced to close operations and
leave India in 1977 after the Janata Dal came to
power.3 Even in the late 1980s, India had a closed
economy and government intervention in the
corporate sector was quite high.
However, multinational companies such as PepsiCo had been eyeing the Indian market for a long
time for a host of reasons. As the major market for PepsiCo, the US, seemed to be reaching
saturation levels, the option to expand on a global scale seemed to have become inevitable for
the company.
India was a lucrative destination since its vast
population offered a huge, untapped customer
base. During the late 1980s, the per capita
consumption of soft drinks in India was only three
bottles per annum as against 63 and 38 for Egypt
and Thailand respectively. Even its neighbor
Pakistan boasted of a per capita soft drink
consumption of 13 bottles. PepsiCo was also
encouraged by the fact that increasing
urbanization had already familiarized Indians with
leading global brands. Given these circumstances,
PepsiCo officials had been involved in hectic
lobbying with the Indian government to obtain
permission to begin operations in the country.
However, the company could not deny that many
political parties and factions were opposed to its
entry into the country. It had therefore become
imperative for PepsiCo to come up with a package
attractive enough for the Indian government.