beverage corporation The drink industry (or drinks industry, also known as the beverage industry) produces drinks, in particular ready to drink products. Drink production can vary greatly depending on the product being made. ManufacturingDrinks.com explains that "bot ...

Purchase Purchasing is the process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between ...

Frito-Lay Frito-Lay is an American subsidiary of PepsiCo that manufactures, markets, and sells corn chips, potato chips, and other snack foods. The primary snack food brands produced under the Frito-Lay name include Fritos corn chips, Cheetos cheese-fla ...

Pepsi Cola Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961. History Pepsi was ...

Pioneer Foods Pioneer Foods is a South African packaged goods company and in March 2020 became a subsidiary of PepsiCo. It operates in South Africa as well as two other African countries and exports a number of its brands globally. The company's core busin ...

Quaker Oats Company The Quaker Oats Company, known as Quaker, is an American food conglomerate based in Chicago. It has been owned by PepsiCo since 2001. History Precursor miller companies In the 1850s, Ferdinand Schumacher and Robert Stuart founded oat mills. Sc ...

Gatorade Gatorade is an American brand of sports-themed beverage and food products, built around its signature line of sports drinks. Gatorade is currently manufactured by PepsiCo and is distributed in over 80 countries. The beverage was first develop ...

Tropicana Products Tropicana Brands (''pronounced as'' traa·puh·ka·nuh) is a former American fruit-based beverage company. It was founded in 1947 by Anthony T. Rossi in Bradenton, Florida. Between 1998 and 2021 it was a subsidiary of PepsiCo, but in August 2021 ...

net revenue In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, ...

Nestlé Nestlé S.A. (; ; ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other metrics, since ...

Coca-Cola Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola Company. Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton in Atlanta ...

cola wars The cola wars are the long-time rivalry between cola producers The Coca-Cola Company and PepsiCo, who have engaged in mutually-targeted marketing campaigns for the direct competition between each company's product lines, especially their flag ...

Ramon Laguarta Ramon Laguarta (born 1963) is a Spanish businessman who is the chairman and chief executive officer of PepsiCo. He became CEO on 3 October 2018 after Indra Nooyi stepped down. He is the sixth CEO in the company's history and the first Spanish CEO ...

palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 33% of global oils produced from ...

plastic pollution Plastic pollution is the accumulation of plastic objects and particles (e.g. plastic bottles, bags and microbeads) in the Earth's environment that adversely affects humans, wildlife and their habitat. Plastics that act as pollutants are catego ...

Caleb Bradham Caleb Davis Bradham (May 27, 1867 – February 19, 1934) was an American pharmacist, best known as the inventor of soft drink Pepsi. Early life Bradham was born Caleb Davis Bradham on May 27, 1867, in Chinquapin, North Carolina to George Washi ...

Duplin County, North Carolina Duplin County ()
, from the North Carolina Collection's website at the

...

. He coined the name "Pepsi-Cola" in 1898 marketing the drink from his pharmacy in

New Bern, North Carolina New Bern, formerly called Newbern, is a city in Craven County, North Carolina, United States. As of the 2010 census it had a population of 29,524, which had risen to an estimated 29,994 as of 2019. It is the county seat of Craven County and t ...

. As his drink gained popularity Bradham founded the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903. The company was incorporated in Delaware in 1919. Bradham's company experienced years of success leading up to

World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...

. However, sugar rationing during the war and a volatile sugar market in the war's aftermath damaged the company's financial health to such a degree that in 1923, Bradham declared

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

and returned to running pharmacies in North Carolina. On June 8, 1923, the company trademark and secret recipe were purchased by Craven Holding Corporation. In 1931, Roy Megargel, a Wall Street broker, purchased the Pepsi trademark, business, and goodwill from Craven Holding in association with

Charles Guth Charles George Guth (June 3, 1877May 24, 1948) was an American businessman, who, as executive of the Loft Candy Company, purchased the trademark and the syrup recipe of the twice-bankrupt Pepsi-Cola Company. He was President of Loft Candy Compan ...

. Guth was also the president of

Loft, Incorporated Loft, Inc. was the world's largest maker and seller of candy in the 1920s. It manufactured its own products and distributed them throughout greater New York City and Newark, New Jersey. Happiness Candy Stores, Inc., was controlled by Loft, Inc. ...

, a leading candy manufacturer based in Long Island City, New York. Loft ran a network with 115 stores across the Mid Atlantic at the time of Guth's acquisition. Guth used Loft's labs and chemists to reformulate the Pepsi syrup recipe, and he used his position as president of the company to replace

Coca-Cola Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola Company. Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton in Atlanta ...

with Pepsi Cola at Loft's shops and restaurants. Guth also used Loft resources to promote Pepsi, and moved the soda company to a location close by Loft's own facilities in New York City. In 1935, the shareholders of Loft sued Guth for his 91% stake of Pepsi-Cola Company in the landmark case ''

Guth v. Loft Inc. ''Guth v. Loft Inc'', 5 A.2d 503, 23 Del. Ch. 255 (Del. 1939) is a Delaware corporation law case, important for United States corporate law, on corporate opportunities and the duty of loyalty. It deviated from the year 1726 rule laid down in ''Keec ...

'' Loft won the suit and on May 29, 1941, formally absorbed Pepsi into Loft, which was then re-branded as Pepsi-Cola Company that same year. Loft restaurants and candy stores were spun off at this time. In the early 1960s, Pepsi-Cola's product lines expanded with the creation of

Diet Pepsi Diet Pepsi is a Diet drink, diet carbonation, carbonated cola soft drink produced by PepsiCo, introduced in 1964 as a variant of Pepsi with no sugar. First test marketed in 1963 under the name Patio (soda), Patio Diet Cola, it was re-branded as ' ...

and purchase of Mountain Dew. In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc. At the time of its foundation, PepsiCo was incorporated in the state of

Delaware Delaware ( ) is a state in the Mid-Atlantic region of the United States, bordering Maryland to its south and west; Pennsylvania to its north; and New Jersey and the Atlantic Ocean to its east. The state takes its name from the adjacent Del ...

and headquartered in

Manhattan Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...

, New York. The company's headquarters were relocated to the present location of Purchase, New York in 1970, and in 1986 PepsiCo was reincorporated in the state of

North Carolina North Carolina () is a state in the Southeastern region of the United States. The state is the 28th largest and 9th-most populous of the United States. It is bordered by Virginia to the north, the Atlantic Ocean to the east, Georgia and So ...

. After 39 years trading on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...

, PepsiCo moved its shares to

Nasdaq The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...

on December 20, 2017.

Acquisitions and divestments

Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses outside of its core focus of packaged food and beverage brands; however it exited these non-core business lines largely in 1997, selling some, and spinning off others into a new company named Tricon Global Restaurants, which later became known as Yum! Brands, Inc. PepsiCo also previously owned several other brands that it later sold so it could focus on its primary snack food and beverage lines, according to investment analysts reporting on the divestments in 1997. Brands formerly owned by PepsiCo include:

Pizza Hut Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958 in Wichita, Kansas by Dan and Frank Carney. They serve their signature pan pizza and other dishes including pasta, breadsticks and dessert a ...

,

Taco Bell Taco Bell is an American-based chain of fast food restaurants founded in 1962 by Glen Bell (1923–2010) in Downey, California. Taco Bell is a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Mexican-inspired foods, includin ...

, KFC,

Hot 'n Now Hot 'n Now is an American fast-food restaurant based in Holt, Michigan. Founded in 1984, the chain once grew to more than 150 locations throughout the United States at its peak. Subsequently, under the ownership of PepsiCo, the chain filed for ...

,

East Side Mario's East Side Mario's is a Canadian chain of casual dining restaurants, managed by its parent holding company Recipe Unlimited. The restaurant specializes in Italian-American cuisine. Individual locations aim to recreate the historic ambience found ...

,

D'Angelo Sandwich Shops D'Angelo Grilled Sandwiches is a chain of 83 neighborhood-style sandwich shops found throughout New England, in Massachusetts, New Hampshire, Maine, Rhode Island and Connecticut. Founded in 1967 in Dedham, Massachusetts, D’Angelo Grilled Sandw ...

,

Chevys Fresh Mex Chevys Fresh Mex is an American chain of Mexican-style casual dining restaurants located in the United States. The chain was founded in 1986 by Warren Simmons in Alameda, California. The chain's headquarters are currently located in Cypress, Cal ...

,

California Pizza Kitchen California Pizza Kitchen (CPK) is an American casual dining restaurant chain that specializes in California-style pizza. The restaurant was started in 1985 by attorneys Rick Rosenfield and Larry Flax in Beverly Hills, California, United States ...

, Stolichnaya (via licensed agreement),

Wilson Sporting Goods The Wilson Sporting Goods Company is an American sports equipment manufacturer based in Chicago, Illinois. The company has been a subsidiary of Finnish multinational company Amer Sports since 1989, and is, in turn, now under the Chinese Anta Spor ...

, and North American Van Lines. The divestments concluding in 1997 were followed by multiple large-scale acquisitions, as PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo purchased the

orange juice Orange juice is a liquid extract of the orange tree fruit, produced by squeezing or reaming oranges. It comes in several different varieties, including blood orange, navel oranges, valencia orange, clementine, and tangerine. As well as vari ...

company

Tropicana Products Tropicana Brands (''pronounced as'' traa·puh·ka·nuh) is a former American fruit-based beverage company. It was founded in 1947 by Anthony T. Rossi in Bradenton, Florida. Between 1998 and 2021 it was a subsidiary of PepsiCo, but in August 2021 ...

in 1998, and merged with

Quaker Oats Company The Quaker Oats Company, known as Quaker, is an American food conglomerate based in Chicago. It has been owned by PepsiCo since 2001. History Precursor miller companies In the 1850s, Ferdinand Schumacher and Robert Stuart founded oat mills. Sc ...

in 2001, adding with it the

Gatorade Gatorade is an American brand of sports-themed beverage and food products, built around its signature line of sports drinks. Gatorade is currently manufactured by PepsiCo and is distributed in over 80 countries. The beverage was first develop ...

sports drink line and other Quaker Oats brands such as Chewy Granola Bars and

Aunt Jemima Pearl Milling Company (formerly known as Aunt Jemima from 1889 to 2021) is an American breakfast brand for Baking mix, pancake mix, syrup, and other breakfast food products. The original version of the pancake mix for the brand was developed i ...

, among others. In August 2009, PepsiCo made a US$7 billion offer to acquire the two largest bottlers of its products in North America:

Pepsi Bottling Group The Pepsi Bottling Group, Inc. was the world's largest bottling company, bottler of Pepsi-Cola beverages. PBG sales of Pepsi-Cola beverages accounted for more than one-half of the Pepsi-Cola beverages sold in the United States and Canada and abou ...

and

PepsiAmericas PepsiAmericas, Inc. was the world's second-largest bottler of Pepsi-Cola products, under contract with product owner PepsiCo. PepsiAmericas also held contracts to produce beverages for Dr Pepper Snapple Group and smaller regional brands. PepsiA ...

. In 2010 this acquisition was completed, resulting in the formation of a new

wholly owned subsidiary A subsidiary, subsidiary company or daughter company is a company (law), company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company ...

of PepsiCo, ''Pepsi Beverages Company''. In February 2011, the company made its largest international acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann Foods, a Russian food company that produces milk, yogurt, fruit juices, and dairy products. When it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food and beverage company in Russia. In July 2012, PepsiCo announced a joint venture with the Theo Muller Group which was named Muller Quaker Dairy. This marked PepsiCo's first entry into the dairy space in the U.S. The joint venture was dissolved in December 2015. On May 25, 2018, PepsiCo announced that it would acquire fruit and veggie snack maker Bare Foods. It will also quarter-own allMotti in late November 2018 and it will be PepsiCo's first owned Tech and Computer Service company. On August 20, 2018, PepsiCo announced that it had entered into agreement to acquire SodaStream. The purchase was completed in December 2018 as part of a strategic plan to steer Pepsi toward offering healthier products. In 2019, PepsiCo sued four small farmers in India US$142,000 each for growing a type of potato it says it owns. Pepsi said they would end the suit if the farmers grew potatoes for them. A number of Farmers' associations are requesting that the government get involved in the case stating that Pepsi is attempting to intimidate people. After pressure from the public as well as state and national governments, PepsiCo withdrew the lawsuit on May 2, 2019. On October 3, 2019, PepsiCo announced that they will leave

Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...

after terminating their partnership with local distributor PT Anugerah Indofood Barokah Makmur (AIBM). Both companies stopped production of PepsiCo products on October 10. This has resulted in KFC and

Pizza Hut Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958 in Wichita, Kansas by Dan and Frank Carney. They serve their signature pan pizza and other dishes including pasta, breadsticks and dessert a ...

chains in the country to switch to Coca-Cola products. On December 2, 2019, PepsiCo acquired the snacks brand,

BFY Brands BFY may refer to: * Bremenfly (ICAO code BFY), a German charter airline * Bagheli language Bagheli (Devanagari: बघेली) or Baghelkhandi is a Central Indo-Aryan language spoken in the Baghelkhand region of central India. Classifica ...

, who are going to be folded into the Frito-Lay division. In March 2020, PepsiCo announced that it had entered into agreement to acquire

Rockstar Energy Rockstar (stylized as ROCKST★R or ЯR) is an energy drink created in 2001, which, , has a 0.3% market share of the US non-alcoholic beverage market. Rockstar is based in Purchase, New York. , Rockstar Energy Drink was available in more than 2 ...

for US$3.85 billion. In January 2021, as a plan to fight global warming, PepsiCo announced that it is planning to achieve

net zero Carbon neutrality is a state of net-zero carbon dioxide emissions. This can be achieved by balancing emissions of carbon dioxide with its removal (often through carbon offsetting) or by eliminating emissions from society (the transition to the " ...

greenhouse gas emissions by 2040, knowing that it had already started generating about 57 million metric tonnes of greenhouse gas emissions globally in 2019. On August 3, 2021, PespiCo announced that they have agreed to sell a majority stake in Tropicana, Naked and other North American juice brands to French private equity firm

PAI Partners PAI Partners is a French private equity firm based in Paris, France. It is one of the oldest firms in the sector, with its origins dating back to Paribas Affaires Industrielles, the historical principal investment activity of Paribas, which sta ...

for US$3.3 billion, so that the company can concentrate on its healthy snack food business. Pepsi will hold a 39% stake in the joint venture as well as having exclusive rights to the brand in the USA. In August 2022, PepsiCo acquired a $550 million stake in the energy drink maker Celsius.

Competition

The Coca-Cola Company The Coca-Cola Company is an American multinational beverage corporation founded in 1892, best known as the producer of Coca-Cola. The Coca-Cola Company also manufactures, sells, and markets other non-alcoholic beverage concentrates and syrups, ...

has historically been considered PepsiCo's primary competitor in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 12 years since both companies began to compete. In 2009, The Coca-Cola Company held a higher market share in carbonated

soft drink A soft drink (see § Terminology for other names) is a drink that usually contains water (often carbonated), a sweetener, and a natural and/or artificial flavoring. The sweetener may be a sugar, high-fructose corn syrup, fruit juice, a su ...

sales within the U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies. As a result of mergers, acquisitions, and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader product base, including foods, snacks, and beverages. The majority of PepsiCo's revenues no longer come from the production and sale of carbonated soft drinks. Beverages accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly more than 60 percent of PepsiCo's beverage sales came from its primary non-carbonated brands, namely

Gatorade Gatorade is an American brand of sports-themed beverage and food products, built around its signature line of sports drinks. Gatorade is currently manufactured by PepsiCo and is distributed in over 80 countries. The beverage was first develop ...

and

Tropicana Tropicana may refer to: Companies *Tropicana Entertainment, a former casino company that owned several Tropicana-branded casinos *Tropicana Products, a Chicago-based food company known for orange juice Hotels and nightclubs *Tropicana Casino & Re ...

. PepsiCo's

Frito-Lay Frito-Lay is an American subsidiary of PepsiCo that manufactures, markets, and sells corn chips, potato chips, and other snack foods. The primary snack food brands produced under the Frito-Lay name include Fritos corn chips, Cheetos cheese-fla ...

and

Quaker Oats The Quaker Oats Company, known as Quaker, is an American food conglomerate based in Chicago. It has been owned by PepsiCo since 2001. History Precursor miller companies In the 1850s, Ferdinand Schumacher and Robert Stuart founded oat mills. Sc ...

brands hold a significant share of the U.S. snack food market, accounting for approximately 39 percent of U.S. snack food sales in 2009. One of PepsiCo's primary competitors in the snack food market overall is

Kraft Foods The second incarnation of Kraft Foods is an American food manufacturing and processing conglomerate, split from Kraft Foods Inc. in 2012 and headquartered in Chicago, Illinois. It became part of Kraft Heinz in 2015. A merger with Heinz, arra ...

(now

Mondelez International Mondelez International, Inc. ( ), often styled Mondelēz, is an American multinational confectionery, food, holding and beverage and snack food company based in Chicago. Mondelez has an annual revenue of about $26 billion and operates in ...

), which in the same year held 11 percent of the U.S. snack market share. Other competitors for soda are

RC Cola RC Cola (short for Royal Crown Cola) is an American brand of cola invented by Claud A. Hatcher in 1905. Royal Crown Ginger Ale was the first product of the RC Cola line, and it referred to the original ingredient: ginger. More ingredients w ...

, Keurig Dr. Pepper, and independent brands varying by region.

Soviet Union

In 1959, the

USSR The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen nationa ...

held an exhibition of Soviet technology and culture in New York. The United States reciprocated with an exhibition in

Sokolniki Park Sokolniki Park, named for the falcon hunt of the Grand Dukes of Muscovy formerly conducted there, is located in the eponymous Sokolniki District of Moscow. Sokolniki Park is not far from the center of the city, near Sokolnicheskaya Gate. Th ...

,

Moscow Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...

, which led to the famous

kitchen debate The Kitchen Debate (russian: Кухонные дебаты, translit=Kukhonnye debaty) was a series of impromptu exchanges through interpreters between U.S. Vice President Richard Nixon, then 46, and Chairman of the Council of Ministers Nikita ...

. One of the American products exhibited was Pepsi Cola. After obtaining a photo of U.S. President

Richard Nixon Richard Milhous Nixon (January 9, 1913April 22, 1994) was the 37th president of the United States, serving from 1969 to 1974. A member of the Republican Party, he previously served as a representative and senator from California and was ...

and Soviet Premier

Nikita Khrushchev Nikita Sergeyevich Khrushchev (– 11 September 1971) was the First Secretary of the Communist Party of the Soviet Union from 1953 to 1964 and chairman of the country's Council of Ministers from 1958 to 1964. During his rule, Khrushchev s ...

sipping Pepsi, PepsiCo executive Donald Kendall was able to capture the attention of the Soviet people and, in 1972, negotiate a cola monopoly in the USSR. Due to Soviet restrictions on transporting

roubles The ruble (American English) or rouble (Commonwealth English) (; rus, рубль, p=rublʲ) is the currency unit of Belarus and Russia. Historically, it was the currency of the Russian Empire and of the Soviet Union. , currencies named ''rub ...

abroad, PepsiCo struck a barter deal whereby Stolichnaya vodka would be exchanged for Pepsi syrup. This deal lasted until 1990, when the USSR and PepsiCo re-negotiated a US$3 billion deal to exchange syrup for vodka and a small fleet of decommissioned Soviet warships including 17

submarine A submarine (or sub) is a watercraft capable of independent operation underwater. It differs from a submersible, which has more limited underwater capability. The term is also sometimes used historically or colloquially to refer to remotely op ...

s, a

frigate A frigate () is a type of warship. In different eras, the roles and capabilities of ships classified as frigates have varied somewhat. The name frigate in the 17th to early 18th centuries was given to any full-rigged ship built for speed and ...

, a

cruiser A cruiser is a type of warship. Modern cruisers are generally the largest ships in a fleet after aircraft carriers and amphibious assault ships, and can usually perform several roles. The term "cruiser", which has been in use for several hu ...

and a

destroyer In naval terminology, a destroyer is a fast, manoeuvrable, long-endurance warship intended to escort larger vessels in a fleet, convoy or battle group and defend them against powerful short range attackers. They were originally developed in ...

. This deal fell through before it could take place due to the

fall of the Soviet Union The dissolution of the Soviet Union, also negatively connoted as rus, Разва́л Сове́тского Сою́за, r=Razvál Sovétskogo Soyúza, ''Ruining of the Soviet Union''. was the process of internal disintegration within the Sov ...

and was renegotiated with the former nations of the USSR. The new trade deal included receiving cheese from Russia to supply its Pizza Hut locations and receiving double-hulled tankers from Ukraine. The deal also originated an erroneous

factoid A factoid is either an invented or assumed statement presented as a fact, ''or'' a true but brief or trivial item of news or information. The term was coined in 1973 by American writer Norman Mailer to mean a piece of information that becomes ac ...

which claims that, after acquiring the Soviet fleet, PepsiCo briefly possessed one of the most powerful

navies A navy, naval force, or maritime force is the branch of a nation's armed forces principally designated for naval and amphibious warfare; namely, lake-borne, riverine, littoral, or ocean-borne combat operations and related functions. It includ ...

in the world. This is false as, not only did the deal ultimately not take place, it would have only granted PepsiCo "small, old, obsolete, unseaworthy vessels."

Finances

For the fiscal year 2017, PepsiCo reported earnings of US$4.857 billion, with an annual revenue of US$62.525 billion, an increase of 1.2% over the previous fiscal cycle. PepsiCo's shares traded at over US$109 per share, and its market capitalization was valued at over US$155.9 billion in September 2018. PepsiCo ranked No. 45 on the 2018 Fortune 500 list of the largest United States corporations by total revenue.

Products and brands

PepsiCo's product mix as of 2015 (based on worldwide net revenue) consists of 53 percent foods, and 47 percent beverages. On a worldwide basis, the company's current products lines include several hundred brands that in 2009 were estimated to have generated approximately US$108 billion in cumulative annual retail sales. The primary identifier of a food and beverage industry main brand is annual sales over US$1 billion. As of 2015, 22 PepsiCo brands met that mark, including:

Pepsi Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961. History Pepsi was ...

, Diet Pepsi, Mountain Dew,

Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...

,

Gatorade Gatorade is an American brand of sports-themed beverage and food products, built around its signature line of sports drinks. Gatorade is currently manufactured by PepsiCo and is distributed in over 80 countries. The beverage was first develop ...

,

Tropicana Tropicana may refer to: Companies *Tropicana Entertainment, a former casino company that owned several Tropicana-branded casinos *Tropicana Products, a Chicago-based food company known for orange juice Hotels and nightclubs *Tropicana Casino & Re ...

,

7 Up 7 Up (stylized as 7up outside North America) is an American brand of lemon-lime-flavored non-caffeinated soft drink. The brand and formula are owned by Keurig Dr Pepper although the beverage is internationally distributed by PepsiCo. 7 Up co ...

/

Teem Teem is a brand of Lemon-lime drink, lemon-lime-flavored soft drink produced by PepsiCo, The Pepsi-Cola Company. It was introduced in 1959 as Pepsi's answer to 7 Up and Sprite (drink), Sprite. Overview In the pre-planning stages, Teem was known ...

, Evervess,

Doritos Doritos () is an American brand of flavored tortilla chips produced since 1964 by Frito-Lay, a wholly owned subsidiary of PepsiCo. The original Doritos were not flavored. The first flavor was Toasted Corn, released in 1966, followed by Taco in ...

, Brisk, Quaker Foods,

Cheetos Cheetos (formerly styled as Chee-tos until 1998) is a crunchy corn puff snack brand made by Frito-Lay, a subsidiary of PepsiCo. Fritos creator Charles Elmer Doolin invented Cheetos in 1948, and began national distribution in the U.S. The initi ...

,

Mirinda Mirinda is a brand of soft drink originally created in Spain in 1959 and now owned by PepsiCo with global distribution. Its name comes from the Esperanto translation of "admirable" or "amazing". It is available in many fruit varieties, like ...

, Ruffles,

Aquafina Aquafina (pronunciation: ) is an American brand of purified bottled water that is produced by PepsiCo, consisting of both unflavored and flavored water. The Aquafina brand name is also licensed for use on multiple skin care products, includ ...

, Naked, Kevita, Propel, Sobe, H2oh, Sabra,

Starbucks Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 c ...

(ready to Drink Beverages),

Pepsi Max Pepsi Max (also known as Pepsi Black in some countries) is a low- calorie, sugar-free cola, marketed by PepsiCo as an alternative to Pepsi and Diet Pepsi. Pepsi Max is still available primarily in Asian and European markets. While Pepsi Max ...

,

Tostitos Tostitos is a brand of Frito-Lay that produces different tortilla chips and a range of accompanying dips. Varieties There are many varieties of Tostitos chips: * Tostitos ''Gold'' (and bite size ''Gold'') - a thicker and larger version of t ...

,

Sierra Mist Sierra Mist is a lemon-lime flavored soft drink line. Originally introduced by PepsiCo in 1999, it was eventually made available in all United States markets by 2003. The drink was rebranded as "Mist Twist" in 2016, although it reverted to Sierr ...

,

Fritos Fritos is an American brand of corn chips and dipping sauces that was created in 1932 by Charles Elmer Doolin and produced since 1961 by the Frito-Lay division of PepsiCo. Fritos are made by deep-frying extruded whole cornmeal, unlike the simi ...

, Walkers, and Bubly.

Business divisions

The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of December 2021 it is separated into seven main divisions: PepsiCo Beverages North America (PBNA), Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America, Europe, Africa, Middle East, South Asia (AMESA) and Asia Pacific, Australia/New Zealand, China (APAC). As of 2015, 73 percent of the company's

net revenue In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, ...

s came from North and South America; 17 percent from Europe and Sub-Saharan Africa; and 10 percent from Asia, the Middle East, and Africa. PepsiCo and its combined subsidiaries employed approximately 263,000 people worldwide as of December 2015.

PepsiCo Beverages North America

This division contributed 35 percent of PepsiCo's net revenue as of 2015, and involves the manufacture (and in some cases

licensing A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...

), marketing and sales of both carbonated and non-carbonated beverages in North America. The main brands distributed under this division include

Pepsi Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961. History Pepsi was ...

, Mountain Dew,

Gatorade Gatorade is an American brand of sports-themed beverage and food products, built around its signature line of sports drinks. Gatorade is currently manufactured by PepsiCo and is distributed in over 80 countries. The beverage was first develop ...

,

7 Up 7 Up (stylized as 7up outside North America) is an American brand of lemon-lime-flavored non-caffeinated soft drink. The brand and formula are owned by Keurig Dr Pepper although the beverage is internationally distributed by PepsiCo. 7 Up co ...

(outside the U.S.),

Tropicana Tropicana may refer to: Companies *Tropicana Entertainment, a former casino company that owned several Tropicana-branded casinos *Tropicana Products, a Chicago-based food company known for orange juice Hotels and nightclubs *Tropicana Casino & Re ...

Pure Premium orange juice,

Sierra Mist Sierra Mist is a lemon-lime flavored soft drink line. Originally introduced by PepsiCo in 1999, it was eventually made available in all United States markets by 2003. The drink was rebranded as "Mist Twist" in 2016, although it reverted to Sierr ...

,

SoBe SoBe (stylized as ) is an American brand of teas, fruit-juice blends and enhanced water beverages owned by PepsiCo. The name SoBe is an abbreviation of South Beach, named after the upscale area located in Miami Beach, Florida. In the past, the ...

Lifewater, Tropicana juice drinks,

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, Naked Juice, and Izze.

Aquafina Aquafina (pronunciation: ) is an American brand of purified bottled water that is produced by PepsiCo, consisting of both unflavored and flavored water. The Aquafina brand name is also licensed for use on multiple skin care products, includ ...

, the company's bottled water brand, is also marketed and licensed through North America Beverages. In 2015, PepsiCo also introduced Stubborn Soda, a line of carbonated beverages without

high fructose corn syrup High-fructose corn syrup (HFCS), also known as glucose–fructose, isoglucose and glucose–fructose syrup, is a sweetener made from corn starch. As in the production of conventional corn syrup, the starch is broken down into glucose by enzy ...

. PepsiCo also has formed partnerships with several beverage brands it does not own, in order to distribute or market them with its own brands. As of 2010, its partnerships include:

Starbucks Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 c ...

(Frappuccino, DoubleShot, and Iced Coffee),

Unilever Unilever plc is a British multinational consumer goods company with headquarters in London, England. Unilever products include food, condiments, bottled water, baby food, soft drink, ice cream, instant coffee, cleaning agents, energy dri ...

's

Lipton Lipton is a British brand of tea, owned by Ekaterra. Lipton was also a supermarket chain in the United Kingdom, later sold to Argyll Foods, after which the company sold only tea. The company is named after its founder, Sir Thomas Lipton, who fo ...

brand (Lipton Brisk and Lipton Iced Tea), and

Dole Dole may refer to: Places * Dole, Ceredigion, Wales * Dole, Idrija, Slovenia * Dole, Jura, France ** Arrondissement of Dole * Dole (Kladanj), a village at the entity line of Federation of Bosnia and Herzegovina-Republika Srpska * Dole, Ljubušk ...

(licensed juices and drinks).

Frito-Lay North America

''Frito-Lay North America'', the result of a merger in 1961 between the Frito Company and the H.W. Lay Company, produces the top-selling line of snack foods in the U.S. Its main brands in the U.S., Canada, and Mexico include

Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...

and Ruffles potato chips;

Doritos Doritos () is an American brand of flavored tortilla chips produced since 1964 by Frito-Lay, a wholly owned subsidiary of PepsiCo. The original Doritos were not flavored. The first flavor was Toasted Corn, released in 1966, followed by Taco in ...

tortilla chips;

Tostitos Tostitos is a brand of Frito-Lay that produces different tortilla chips and a range of accompanying dips. Varieties There are many varieties of Tostitos chips: * Tostitos ''Gold'' (and bite size ''Gold'') - a thicker and larger version of t ...

tortilla chips and dips;

Cheetos Cheetos (formerly styled as Chee-tos until 1998) is a crunchy corn puff snack brand made by Frito-Lay, a subsidiary of PepsiCo. Fritos creator Charles Elmer Doolin invented Cheetos in 1948, and began national distribution in the U.S. The initi ...

cheese flavored snacks;

Fritos Fritos is an American brand of corn chips and dipping sauces that was created in 1932 by Charles Elmer Doolin and produced since 1961 by the Frito-Lay division of PepsiCo. Fritos are made by deep-frying extruded whole cornmeal, unlike the simi ...

corn chips;

Rold Gold Rold Gold refers to first a company and then a remaining brand of pretzels, now owned by Frito-Lay. The company, originally named "American Cone and Pretzel Company", was founded in 1917 by Philadelphia businessman Lorraine Schumaker. Run for i ...

pretzels; Sun Chips; and

Cracker Jack Cracker Jack is an American brand of snack food that consists of molasses-flavored, caramel-coated popcorn, and peanuts, well known for being packaged with a prize of trivial value inside. The Cracker Jack name and slogan, "The More You Eat The ...

popcorn. Products made by this division are sold to independent distributors and retailers, and are transported from Frito-Lay's manufacturing plants to distribution centers, principally in vehicles owned and operated by the company. The division contributed 23 percent of PepsiCo's net revenue in 2015. Until November 2009, Christopher Furman, President of Ventura Foods Inc., occupied the position of Food Services CEO.

Quaker Foods North America

''Quaker Foods North America'', created following PepsiCo's acquisition of the

Quaker Oats Company The Quaker Oats Company, known as Quaker, is an American food conglomerate based in Chicago. It has been owned by PepsiCo since 2001. History Precursor miller companies In the 1850s, Ferdinand Schumacher and Robert Stuart founded oat mills. Sc ...

in 2001, manufactures, markets, and sells Quaker Oatmeal, Rice-A-Roni,

Cap'n Crunch Cap'n Crunch is a corn and oat breakfast cereal manufactured by Quaker Oats Company, a subsidiary of PepsiCo since 2001. After introducing the original cereal in 1963, marketed simply as ''Cap'n Crunch'', Quaker Oats has since introduced numer ...

, and Life cereals, as well as

Near East The ''Near East''; he, המזרח הקרוב; arc, ܕܢܚܐ ܩܪܒ; fa, خاور نزدیک, Xāvar-e nazdik; tr, Yakın Doğu is a geographical term which roughly encompasses a transcontinental region in Western Asia, that was once the hist ...

side dishes within North America. This division also owns and produces the

Pearl Milling Company Pearl Milling Company (formerly known as Aunt Jemima from 1889 to 2021) is an American breakfast brand for pancake mix, syrup, and other breakfast food products. The original version of the pancake mix for the brand was developed in 1888–18 ...

brand, which as of 2009 was the top selling line of

syrup In cooking, a syrup (less commonly sirup; from ar, شراب; , beverage, wine and la, sirupus) is a condiment that is a thick, viscous liquid consisting primarily of a solution of sugar in water, containing a large amount of dissolved sugars ...

s and pancake mixes within this region. ''Sabritas'' and ''Gamesa'' are two of PepsiCo's food and snack business lines headquartered in Mexico, and they were acquired by PepsiCo in 1966 and 1990, respectively.

Sabritas Papa Sabritas is a Mexican snacks company. They are best known for manufacturing chips. History Sabritas was founded in 1943 by Pedro Antonio Marcos Noriega as Golosinas y Productos Selectos in Mexico City. It produced and sold potato chips, ...

markets Frito-Lay products in Mexico, including local brands such as Poffets, Rancheritos, Crujitos, and Sabritones.

Gamesa Gamesa (formerly Galletera Mexicana S.A. de C.V. "Mexican Biscuit Company") is Mexico's largest manufacturer of cookies. The company also makes flour, ready to eat cereals and other related products. It is headquartered in San Nicolás de los Gar ...

is the largest manufacturer of

cookies A cookie is a baked or cooked snack or dessert that is typically small, flat and sweet. It usually contains flour, sugar, egg, and some type of oil, fat, or butter. It may include other ingredients such as raisins, oats, chocolate chips, nuts ...

in Mexico, distributing brands such as Emperador, Arcoiris and Marías Gamesa. The division contributed 4 percent of PepsiCo's net revenues in 2015.

Latin America

PepsiCo's ''Latin America Foods'' (Spanish: ''Snacks América Latina'') operations market and sell primarily Quaker- and Frito-Lay/Sabritas/Elma Chips-branded snack foods within Mexico,

Central Central is an adjective usually referring to being in the center of some place or (mathematical) object. Central may also refer to: Directions and generalised locations * Central Africa, a region in the centre of Africa continent, also known as ...

and South America, including Argentina, Brazil, Peru, and other countries in this region. Snacks América Latina purchased Peruvian company Karinto S.A.C. including its production company Bocaditas Nacionales (with three production facilities in Peru) from the Hayashida family of Lima in 2009, adding the Karito brand to its product line, including Cuates, Fripapas, and Papi Frits. The company started a new market strategy to sell its Pepsi Cola product in Mexico, stating that about one-third of the population has difficulty pronouncing "Pepsi". With manufacture and sales of its product under the label 'Pécsi', the advertisement campaign features the Mexican soccer celebrity

Cuauhtémoc Blanco Cuauhtémoc Blanco Bravo (; born 17 January 1973) is a Mexican politician and former professional footballer who is the current Governor of Morelos under the coalition '' Juntos Haremos Historia''. He formerly served as the municipal president ...

. In 2009, PepsiCo had previously used the same strategy successfully in Argentina. Pepsico will market and distribute

Starbucks Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 c ...

products in several Latin American countries for 2016. The division contributed 13 percent of PepsiCo's net revenues in 2015.

Europe

PepsiCo began to expand its distribution in Europe in the 1980s, and in 2015 it made up 17 percent of the company's global net revenue. Unlike PepsiCo's Americas business segments, both foods and beverages are manufactured and marketed under one umbrella division in this region, known as ''PepsiCo Europe''. The primary brands sold by PepsiCo in Europe include Pepsi-Cola beverages, Frito-Lay snacks, Tropicana juices, and Quaker food products, as well as regional brands unique to Europe such as

Walkers crisps Walkers is a British snack food manufacturer mainly operating in the UK and Ireland. The company is best known for manufacturing potato crisps and other (non-potato-based) snack foods. In 2013, it held 56% of the British crisp market. Walker ...

, Copella, Paw Ridge, Snack-a-Jack,

Duyvis Duyvis is a Dutch brand of salty snacks, peanuts and nuts. Dip sauces are also sold under the Duyvis brand. History The Duyvis name is attested since the 16th century in the Zaanstreek. In 1806, Teewis Duyvis (1757–1832), member of an anaba ...

, and others. PepsiCo also produces and distributes the soft drink 7UP in Europe via license agreement. PepsiCo has 3 sites in South Africa (Isando, Parrow, and Prospecton) which produce Lay's and Simba chips. PepsiCo's European presence expanded in Russia in 2009 as the company announced a US$1B investment, and with its acquisition of Russian juice and dairy product brand Wimm-Bill-Dann Foods in December 2010 and Lebedyansky juice producer in March 2008. According to Reuters, "PepsiCo reported that in 2017, its

Russia Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...

n operations generated net revenue of US$3.23 billion, which made up 5.1 percent of the company's total net revenue." Following the

2022 Russian invasion of Ukraine On 24 February 2022, in a major escalation of the Russo-Ukrainian War, which began in 2014. The invasion has resulted in tens of thousands of deaths on both sides. It has caused Europe's largest refugee crisis since World War II. An ...

, a number of companies faced growing pressure to halt operations in Russia after not initially doing so. On March 8, 2022, PepsiCo announced in a letter from CEO Laguarta the "suspension of the sale of Pepsi-Cola... our global beverage brands in Russia, including

7 Up 7 Up (stylized as 7up outside North America) is an American brand of lemon-lime-flavored non-caffeinated soft drink. The brand and formula are owned by Keurig Dr Pepper although the beverage is internationally distributed by PepsiCo. 7 Up co ...

and

Mirinda Mirinda is a brand of soft drink originally created in Spain in 1959 and now owned by PepsiCo with global distribution. Its name comes from the Esperanto translation of "admirable" or "amazing". It is available in many fruit varieties, like ...

... ndcapital investments and all advertising and promotional activities in Russia." However, PepsiCo maintained it had a "responsibility" to continue to sell "milk and other dairy offerings, baby formula and baby food", and that " continuing to operate, we will also continue to support the livelihoods of our 20,000 Russian associates and the 40,000 Russian agricultural workers in our supply chain".

, Middle East, South Asia (AMESA)

The AMESA sector consists of the Africa, Middle East and South Asia regions, and features many leading global and local snack brands including Lay's, Cheetos, and Doritos, along with local favorites such as Chipsy (Egypt), Simba (South Africa) and Kurkure (India and Pakistan), as well as various beverage brands including 7UP, Pepsi, Aquafina, Mtn Dew, Mirinda, and Sting. The AMESA sector covers a wide span of developing and emerging markets, including the key countries of Egypt, India, Saudi Arabia, Pakistan and South Africa. In 2020, PepsiCo acquired Pioneer Foods, a leading food and beverage company in South Africa, adding its robust, well-known brands including Weet-Bix, Bokomo and Ceres to PepsiCo's portfolio. The Pioneer Foods acquisition is key to PepsiCo's growth strategy across the entire African continent. In addition to the production and sales of several worldwide Pepsi-Cola, Quaker Foods, and Frito-Lay beverage and food product lines (including Pepsi and Doritos), this segment of PepsiCo's business markets regional brands such as

Mirinda Mirinda is a brand of soft drink originally created in Spain in 1959 and now owned by PepsiCo with global distribution. Its name comes from the Esperanto translation of "admirable" or "amazing". It is available in many fruit varieties, like ...

,

Kurkure Kurkure is a brand of spiced crunchy puffcorn snacks made up of rice, lentil and corn, owned by PepsiCo. The snack was originated in India and was launched in 1999 in the country. The snack is currently being manufactured and sold in India, Pak ...

, and

Red Rock Deli Red is the color at the long wavelength end of the visible spectrum of light, next to orange and opposite violet. It has a dominant wavelength of approximately 625–740 nanometres. It is a primary color in the RGB color model and a secondar ...

, among others. While PepsiCo owns its own manufacturing and distribution facilities in certain parts of these regions, more of this production is conducted via alternate means such as

licensing A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...

(which it does with Aquafina), contract manufacturing, joint ventures, and affiliate operations. PepsiCo's businesses in these regions, as of 2015, contributed 10 percent to the company's

net revenue In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, ...

worldwide. In 1992, the Pepsi Number Fever marketing campaign in the

Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...

accidentally distributed 800,000 winning bottle caps for a 1 million

peso The peso is the monetary unit of several countries in the Americas, and the Philippines. Originating in the Spanish Empire, the word translates to "weight". In most countries the peso uses the Dollar sign, same sign, "$", as many currencies na ...

grand prize, leading to riots and the deaths of five people. In August 2012, PepsiCo signed an agreement with a local Myanmar distributor to sell its soft drinks after a 15-year break to re-enter the country. SodaStream, which PepsiCo acquired in 2018 is based in Israel, while

Sabra Sabra may refer to: Arts and entertainment * Sabra (comics), a fictional Israeli female superhero in the Marvel Comics universe * Sabra (magazine), a Japanese magazine for men * '' Sabra Command'' the original title of the film ''Warhead'' * "Sab ...

(which PepsiCo co-owns with the Israeli food conglomerate

Strauss Group Strauss Group Ltd. ( he, שטראוס גרופ בע״מ), formerly known as Strauss-Elite (), is among the largest food products manufacturers in Israel. Strauss Group focuses on dairy products, coffee, water, snacks, salads, and dips. Its ...

) holds a 60% market share for hummus sales in the United States as of 2015. The Strauss Group produces and distributes Frito-Lay products in Israel.

Pacific, Australia/New Zealand, China (APAC)

PepsiCo Australia & New Zealand is located on the Pacific Highway,

Chatswood, New South Wales Chatswood is a major business and residential district in the Lower North Shore of Sydney, in the state of New South Wales, Australia, 10 kilometres north of the Sydney central business district. It is the administrative centre of the lo ...

.

Corporate governance

Headquartered in Harrison, New York, in the hamlet of

Purchase Purchasing is the process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between ...

, with research and development headquarters in

Valhalla In Norse mythology Valhalla (;) is the anglicised name for non, Valhǫll ("hall of the slain").Orchard (1997:171–172) It is described as a majestic hall located in Asgard and presided over by the god Odin. Half of those who die in combat e ...

, New York, PepsiCo's Chairman and CEO is

Ramon Laguarta Ramon Laguarta (born 1963) is a Spanish businessman who is the chairman and chief executive officer of PepsiCo. He became CEO on 3 October 2018 after Indra Nooyi stepped down. He is the sixth CEO in the company's history and the first Spanish CEO ...

. The board of directors is composed of eleven outside directors as of 2010, including

Ray Lee Hunt Ray Lee Hunt (born 1943) is an American billionaire heir and businessman. Early life Hunt is the son of the late H. L. Hunt (1889–1974), founder of Hunt Oil Co. His parents married in 1957. Hunt's sisters include June Hunt, Swanee Hunt, and ...

,

Shona Brown Shona L. Brown (born ) is a business executive and consultant to non-profits and corporations. She was an executive at Google from 2003 to 2012, where she was senior vice president of business operations. Life Brown has a bachelor of computer s ...

, Victor Dzau, Arthur C. Martinez,

Sharon Percy Rockefeller Sharon Lee Percy Rockefeller (born December 10, 1944) is the wife of former West Virginia Senator John Davison "Jay" Rockefeller IV and served as that state's First Lady from 1977 to 1985. On November 21, 2019, she was awarded the National Med ...

,

Daniel Vasella Daniel Lucius Vasella (born 15 August 1953) is a Swiss medical doctor, author, and executive who served as CEO and chairman of the Swiss pharmaceutical company Novartis AG, the world's fifth largest drug company. During his tenure Novartis shares f ...

,

Dina Dublon Dina Dublon (born 1953) is a senior lecturer at Harvard Business School and current member of the boards of directors at Microsoft, Accenture, T. Rowe Price, and PepsiCo. She also serves as a trustee of Carnegie Mellon University and on the b ...

, Ian M. Cook, Alberto Ibargüen, and Lloyd G. Trotter. Former top executives at PepsiCo include Steven Reinemund,

Roger Enrico Roger Anthony Enrico (November 11, 1944 – June 1, 2016) was an American businessman who is best known for his lengthy service as chief executive officer of PepsiCo. Early life Enrico was born on November 11, 1944, to Italian immigrants in the ...

,

D. Wayne Calloway Wayne Calloway (September 12, 1935 - July 8, 1998) was an important North American golf course architect who designed many courses in Canada and the United States. was chairman and CEO of PepsiCo from 1986 until the mid-1990s. He was chairman of ...

,

John Sculley John Sculley III (born April 6, 1939) is an American businessman, entrepreneur and investor in high-tech startups. Sculley was vice-president (1970–1977) and president of PepsiCo (1977–1983), until he became chief executive officer (CEO) ...

,

Michael H. Jordan Michael H. Jordan (June 13, 1936 – May 25, 2010) was an American businessman. He served as the chief executive officer of PepsiCo Worldwide Foods (1986–1990), Westinghouse Electric Corporation (1993–1998), CBS Corporation (1995–1998), and ...

,

Donald M. Kendall Donald Mcintosh Kendall (March 16, 1921 – September 19, 2020) was an American businessman and political adviser. He served as CEO of Pepsi Cola (which merged with Herman Lay's Frito Lay, Inc. to become PepsiCo in 1965) and as CEO of Peps ...

, Christopher A. Sinclair,

Irene Rosenfeld Irene Blecker Rosenfeld (born May 3, 1953) is an American businesswoman who was the chairman and chief executive officer (CEO) of Mondelēz International. Rosenfeld's career began at Dancer Fitzgerald Sample, a New York City advertising agency. ...

, David C. Novak, Brenda C. Barnes, and

Alfred Steele Alfred Nu Steele (April 24, 1900 – April 19, 1959) was an American soft drink businessman most known for being the CEO of Pepsi-Cola Company from 1949 until his death in 1959. Life and career Alfred Steele graduated from Northwestern Univers ...

. On October 1, 2006, former Chief Financial Officer and President

Indra Nooyi Indra Nooyi (née Krishnamurthy; born October 28, 1955) is an Indian-American business executive and former chief executive officer and chairperson of PepsiCo. She has consistently ranked among the world's 100 most powerful women. In 2014, sh ...

replaced Steve Reinemund as chief executive officer. Nooyi remained as the corporation's president, and became Chairman of the Board in May 2007, later (in 2010) being named No.1 on ''

Fortune Fortune may refer to: General * Fortuna or Fortune, the Roman goddess of luck * Luck * Wealth * Fortune, a prediction made in fortune-telling * Fortune, in a fortune cookie Arts and entertainment Film and television * ''The Fortune'' (1931 film) ...

'' list of the "50 Most Powerful Women" and No.6 on ''

Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...

'' list of the "World's 100 Most Powerful Women". PepsiCo received a 100 percent rating on the

Corporate Equality Index The Corporate Equality Index is a report published by the Human Rights Campaign Foundation as a tool to rate American businesses on their treatment of gay, lesbian, bisexual and transgender employees, consumers and investors. Its primary source o ...

released by the

LGBT ' is an initialism that stands for lesbian, gay, bisexual, and transgender. In use since the 1990s, the initialism, as well as some of its common variants, functions as an umbrella term for sexuality and gender identity. The LGBT term is a ...

-advocate group

Human Rights Campaign The Human Rights Campaign (HRC) is an American LGBTQ advocacy group. It is the largest LGBTQ political lobbying organization within the United States. Based in Washington, D.C., the organization focuses on protecting and expanding rights for LGB ...

starting in 2004, the third year of the report. In November 2014, the firm's president Zein Abdalla announced he would be stepping down from his position at the firm by the end of 2014. In 2017, Ramon Laguarta became the president and became its CEO in 2018.

Headquarters

The PepsiCo headquarters are located in the hamlet of Purchase, New York, in the town and village of Harrison, New York. It was one of the last architectural works by

Edward Durell Stone Edward Durell Stone (March 9, 1902 – August 6, 1978) was an American architect known for the formal, highly decorative buildings he designed in the 1950s and 1960s. His works include the Museum of Modern Art, in New York City, the Museo de A ...

. It consists of seven three-story buildings. Each building is connected to its neighbor through a corner. The property includes the

Donald M. Kendall Sculpture Gardens The Donald M. Kendall Sculpture Gardens is a collection of 45 pieces of outdoor sculpture at the PepsiCo world headquarters in Purchase, New York. The collection includes work from major modern sculptors including Auguste Rodin, Henry Moore, Alexan ...

with 45 contemporary sculptures open to the public. Works include those of

Alexander Calder Alexander Calder (; July 22, 1898 – November 11, 1976) was an American sculptor known both for his innovative mobiles (kinetic sculptures powered by motors or air currents) that embrace chance in their aesthetic, his static "stabiles", and hi ...

,

Henry Moore Henry Spencer Moore (30 July 1898 – 31 August 1986) was an English artist. He is best known for his semi- abstract monumental bronze sculptures which are located around the world as public works of art. As well as sculpture, Moore produced ...

, and

Auguste Rodin François Auguste René Rodin (12 November 184017 November 1917) was a French sculptor, generally considered the founder of modern sculpture. He was schooled traditionally and took a craftsman-like approach to his work. Rodin possessed a uniqu ...

. ''

Westchester Magazine ''Westchester Magazine'' is a magazine and website that covers news, culture, lifestyle, nightlife, shopping, and other local information within Westchester County, New York. It is published monthly by Today Media, LLC, a company located in Rye, ...

'' stated "The buildings' square blocks rise from the ground into low, inverted ziggurats, with each of the three floors having strips of dark windows; patterned pre-cast concrete panels add texture to the exterior surfaces." In 2010 the magazine ranked the building as one of the ten most beautiful buildings in Westchester County. During the 1960s, PepsiCo had its headquarters in 500 Park Avenue in

Midtown Manhattan Midtown Manhattan is the central portion of the New York City borough of Manhattan and serves as the city's primary central business district. Midtown is home to some of the city's most prominent buildings, including the Empire State Buildin ...

, New York City. In 1956 PepsiCo paid US$2 million for the previous building at the site. PepsiCo built 500 Park Avenue in 1960. In 1966,

Mayor of New York City The mayor of New York City, officially Mayor of the City of New York, is head of the executive branch of the government of New York City and the chief executive of New York City. The mayor's office administers all city services, public property ...

John Lindsay John Vliet Lindsay (; November 24, 1921 – December 19, 2000) was an American politician and lawyer. During his political career, Lindsay was a U.S. congressman, mayor of New York City, and candidate for U.S. president. He was also a regular ...

started a private campaign to convince PepsiCo to remain in New York City. Six months later, the company announced that it was moving to on the Blind Brook Polo Club in Purchase.

Charitable activities

PepsiCo has maintained a philanthropic program since 1962 called the PepsiCo Foundation, in which it primarily funds "nutrition and activity, safe water and water usage efficiencies, and education," according to the foundation's website. In 2009, US$27.9 million was contributed through this foundation, including grants to the

United Way United Way is an international network of over 1,800 local nonprofit fundraising affiliates. United Way was the largest nonprofit organization in the United States by donations from the public, prior to 2016. United Way organizations raise funds ...

and

YMCA YMCA, sometimes regionally called the Y, is a worldwide youth organization based in Geneva, Switzerland, with more than 64 million beneficiaries in 120 countries. It was founded on 6 June 1844 by George Williams in London, originally ...

, among others. In 2009, PepsiCo launched an initiative called the ''Pepsi Refresh Project'', For the first time in 23 years, PepsiCo did not invest in Super Bowl advertising for its iconic brand. Instead, the company diverted this US$20 million to the social media-fueled Pepsi Refresh Project: PepsiCo's innovative cause-marketing program in which consumers submitted ideas for grants for health, environmental, social, educational, and cultural causes. in which individuals submit and vote on charitable and

nonprofit A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...

collaborations. The main recipients of grants as part of the refresh project are community organizations with a local focus and nonprofit organizations, such as a high school in

Michigan Michigan () is a state in the Great Lakes region of the upper Midwestern United States. With a population of nearly 10.12 million and an area of nearly , Michigan is the 10th-largest state by population, the 11th-largest by area, and the ...

that—as a result of being selected in 2010—received US$250,000 towards construction of a fitness room. Following the Gulf of Mexico oil spill in the spring of 2010, PepsiCo donated US$1.3 million to grant winners determined by popular vote. As of October 2010, the company had provided a cumulative total of US$11.7 million in funding, spread across 287 ideas of participant projects from 203 cities in North America. In late 2010, the refresh project was reported to be expanding to include countries outside of North America in 2011.

Working conditions

In July 2021, Frito-Lay, a subsidiary of PepsiCo became the subject to media attention over poor working conditions at its plant in Topeka. These conditions, which allegedly include forced overtime and 84-hour workweeks for months, led to a strike involving hundreds of workers at the Topeka location. The strike began on July 5 and ended on July 23, after ratifications of a two-year contract that guarantees workers at least one day off each week and raised wages. Texas-shaped_basket_with_chips

Environmental record

Rainforests and palm oil

PepsiCo Palm Oil Commitments published in May 2014 were welcomed by media as a positive step towards ensuring that the company's

palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 33% of global oils produced from ...

purchases will not contribute to deforestation and human rights abuses in the palm oil industry. NGOs warned that the commitments did not go far enough, and in light of the deforestation crisis in Southeast Asia, have called on the company to close the gaps in its policies immediately.

Genetically modified ingredients

PepsiCo has contributed US$1,716,300 to oppose the passage of California Proposition 37, which would mandate the disclosure of

genetically modified crops Genetically modified crops (GM crops) are plants used in agriculture, the DNA of which has been modified using genetic engineering methods. Plant genomes can be engineered by physical methods or by use of ''Agrobacterium'' for the delivery of ...

used in the production of California food products. PepsiCo believes "that genetically-modified products can play a role in generating positive economic, social and environmental contributions to societies around the world; particularly in times of food shortages."

Water usage (India, U.S., U.K.)

PepsiCo's usage of water was the subject of controversy in India in the early and mid-2000s, in part because of the company's alleged impact on water usage in a country where

water shortage Water scarcity (closely related to water stress or water crisis) is the lack of fresh water resources to meet the standard water demand. There are two types of water scarcity: physical or economic water scarcity. Physical water scarcity is wher ...

s are a perennial issue. In this setting, PepsiCo was perceived by India-based environmental organizations as a company that diverted water to manufacture a discretionary product, making it a target for critics at the time. As a result, in 2003 PepsiCo launched a country-wide program to achieve a "positive water balance" in India by 2009. In 2007, PepsiCo's then-CEO Indra Nooyi made a trip to India to address water usage practices in the country, prompting prior critic Sunita Narain, director of the Centre for Science & Environment (CSE), to note that PepsiCo "seem(s) to be doing something serious about water now." According to the company's 2009 corporate citizenship report, as well as media reports at the time, the company (in 2009) replenished nearly six billion liters of water within India, exceeding the aggregate water intake of approximately five billion liters by PepsiCo's India manufacturing facilities. Water usage concerns have arisen at times in other countries where PepsiCo operates. In the U.S.,

water shortage Water scarcity (closely related to water stress or water crisis) is the lack of fresh water resources to meet the standard water demand. There are two types of water scarcity: physical or economic water scarcity. Physical water scarcity is wher ...

s in certain regions resulted in increased scrutiny on the company's production facilities, which were cited in media reports as being among the largest water users in cities facing drought—such as

Atlanta, Georgia Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...

. In response, the company formed partnerships with non-profit organizations such as the

Earth Institute {{Infobox organization , name = The Earth Institute , image = Ei blue1.gif , map_size = , map_alt = , map_caption = , map2 = , type = , tax_id ...

and

Water.org Water.org is an international nonprofit organization that helps people living in poverty get access to safe water and improved sanitation through affordable financing. This organization was founded by Matt Damon and Gary White. Water.org current ...

, and in 2009 began cleaning new Gatorade bottles with purified air instead of rinsing with water, among other

water conservation Water conservation includes all the policies, strategies and activities to sustainably manage the natural resource of fresh water, to protect the hydrosphere, and to meet the current and future human demand (thus avoiding water scarcity). Populati ...

practices. In the United Kingdom, also in response to regional

drought A drought is defined as drier than normal conditions.Douville, H., K. Raghavan, J. Renwick, R.P. Allan, P.A. Arias, M. Barlow, R. Cerezo-Mota, A. Cherchi, T.Y. Gan, J. Gergis, D. Jiang, A. Khan, W. Pokam Mba, D. Rosenfeld, J. Tierney, an ...

conditions, PepsiCo snacks brand Walkers' reduced water usage at its largest

potato chip A potato chip (North American English; often just chip) or crisp (British and Irish English) is a thin slice of potato that has been either deep fried, baked, or air fried until crunchy. They are commonly served as a snack, side dish, or ap ...

facility by 45 percent between the years 2001 and 2008. In doing so, the factory used machinery that captured water naturally contained in potatoes, and used it to offset the need for outside water. As a result of water reduction practices and efficiency improvements, PepsiCo in 2009 saved more than 12 billion liters of water worldwide, compared to its 2006 water usage. Environmental advocacy organizations including the

Natural Resources Defense Council The Natural Resources Defense Council (NRDC) is a United States-based 501(c)(3) non-profit international environmental advocacy group, with its headquarters in New York City and offices in Washington D.C., San Francisco, Los Angeles, Chicago, Bo ...

and individual critics such as

Rocky Anderson Ross Carl "Rocky" Anderson (born September 9, 1951), from the United States, is an attorney, writer, activist, civil and human rights advocate. He served two terms as the 33rd Mayor of Salt Lake City, Utah from 2000 to 2008. He is now running f ...

(mayor of

Salt Lake City, Utah Salt Lake City (often shortened to Salt Lake and abbreviated as SLC) is the Capital (political), capital and List of cities and towns in Utah, most populous city of Utah, United States. It is the county seat, seat of Salt Lake County, Utah, Sal ...

) voiced concerns in 2009, noting that the company could conserve additional water by refraining from the production of discretionary products such as Aquafina. The company maintained its positioning of bottled water as "healthy and convenient", while also beginning to partially offset environmental impacts of such products through alternate means, including

packaging Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages. Packaging can be described as a co ...

weight reduction.

Pesticide regulation (India)

PepsiCo's India operations were met with substantial resistance in 2003 and again in 2006, when an environmental organization in New Delhi made the claim that, based on its research, it believed that the levels of

pesticides Pesticides are substances that are meant to control pests. This includes herbicide, insecticide, nematicide, molluscicide, piscicide, avicide, rodenticide, bactericide, insect repellent, animal repellent, microbicide, fungicide, and lampric ...

in PepsiCo (along with those from rival The Coca-Cola Company), exceeded a set of proposed safety standards on soft drink ingredients that had been developed by the Bureau of Indian Standards. PepsiCo denied the allegations, and India's health ministry has also dismissed the allegations—both questioning the accuracy of the data compiled by the CSE, as it was tested by its own internal laboratories without being verified by outside peer review. The ensuing dispute prompted a short-lived ban on the sale of PepsiCo and The Coca-Cola Company soft drinks within India's southwestern state of

Kerala Kerala ( ; ) is a state on the Malabar Coast of India. It was formed on 1 November 1956, following the passage of the States Reorganisation Act, by combining Malayalam-speaking regions of the erstwhile regions of Cochin, Malabar, South ...

in 2006; however this ban was reversed by the Kerala High Court one month later. In November 2010, the

Supreme Court of India The Supreme Court of India ( IAST: ) is the supreme judicial authority of India and is the highest court of the Republic of India under the constitution. It is the most senior constitutional court, has the final decision in all legal matters ...

invalidated a criminal complaint filed against PepsiCo India by the

Kerala Kerala ( ; ) is a state on the Malabar Coast of India. It was formed on 1 November 1956, following the passage of the States Reorganisation Act, by combining Malayalam-speaking regions of the erstwhile regions of Cochin, Malabar, South ...

government, on the basis that the beverages did meet local standards at the time of the allegations. The court ruling stated that the "percentage of pesticides" found in the tested beverages was "within the tolerance limits subsequently prescribed in respect of such product," since at the time of testing "there was no provision governing pesticide adulteration in cold drinks." In 2010, PepsiCo was among the 12 multinational companies that displayed "the most impressive corporate social responsibility credentials in emerging markets", as determined by the

U.S. Department of State The United States Department of State (DOS), or State Department, is an executive department of the U.S. federal government responsible for the country's foreign policy and relations. Equivalent to the ministry of foreign affairs of other ...

. PepsiCo's India unit received recognition on the basis of its water conservation and safety practices and corresponding results.

Packaging and recycling

Environmental advocates have raised concern over the environmental impacts surrounding the disposal of PepsiCo's bottled beverage products in particular, as bottle

recycling Recycling is the process of converting waste materials into new materials and objects. The recovery of energy from waste materials is often included in this concept. The recyclability of a material depends on its ability to reacquire the p ...

rates for the company's products in 2009 averaged 34 percent within the U.S. In 2019, BreakFreeFromPlastic named PepsiCo a top 10 global plastic polluter for the second year in a row. The company has employed efforts to minimize these environmental impacts via

packaging Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages. Packaging can be described as a co ...

developments combined with recycling initiatives. In 2010, PepsiCo announced a goal to create partnerships that prompt an increase in the beverage container recycling rate in the U.S. to 50 percent by 2018. One strategy enacted to reach this goal has been the placement of interactive recycling kiosks called "Dream Machines" in supermarkets,

convenience stores A convenience store, convenience shop, corner store or corner shop is a small retail business that stocks a range of everyday items such as coffee, groceries, snack foods, confectionery, soft drinks, ice creams, tobacco products, lottery ticke ...

, and

gas stations A filling station, also known as a gas station () or petrol station (), is a facility that sells fuel and engine lubricants for motor vehicles. The most common fuels sold in the 2010s were gasoline (or petrol) and diesel fuel. Gaso ...

, with the intent of increasing access to recycling receptacles. The use of

resin In polymer chemistry and materials science, resin is a solid or highly viscous substance of plant or synthetic origin that is typically convertible into polymers. Resins are usually mixtures of organic compounds. This article focuses on natu ...

to manufacture its

plastic bottle A plastic bottle is a bottle constructed from high-density or low density plastic. Plastic bottles are typically used to store liquids such as water, soft drinks, motor oil, cooking oil, medicine, shampoo, milk, and ink. The size ranges from v ...

s has resulted in reduced packaging weight, which in turn reduces the volume of

fossil fuels A fossil fuel is a hydrocarbon-containing material formed naturally in the Earth's crust from the remains of dead plants and animals that is extracted and burned as a fuel. The main fossil fuels are coal, oil, and natural gas. Fossil fuels ...

required to transport certain PepsiCo products. The weight of Aquafina bottles was reduced nearly 40 percent, to 15 grams, with a packaging redesign in 2009. Also in that year, PepsiCo brand Naked Juice began production and distribution of the first 100 percent post-consumer recycled plastic bottle. On March 15, 2011, PepsiCo unveiled the world's first plant-based

PET A pet, or companion animal, is an animal kept primarily for a person's company or entertainment rather than as a working animal, livestock, or a laboratory animal. Popular pets are often considered to have attractive appearances, intelligence ...

bottle. The bottle is made from plant-based materials, such as switch grass, corn husks, and pine bark, and is 100% recyclable. PepsiCo plans to reuse more by-products of its manufacturing processes such as orange peels and oat hulls in the bottles. PepsiCo has identified methods to create a molecular structure that is the same as normal petroleum-based PET—which will make the new bottle technology, dubbed "Green Bottle", similar to Coke's "PlantBottle" idea from 2009, which feel the same as normal PET. PepsiCo have said to pilot production in 2012, and upon successful completion of the pilot, intends moving to full-scale commercialization, however in 2021 there are still no records of such bottles being produced. In a bid to reduce packaging consumption, in recent years the PepsiCoPartners launched as a service offering carbonated drinks dispensers within the US. The dispensers are currently being trialed in large corporate offices and universities. In 2020 PepsiCo teamed up with French biochemistry startup

Carbios Carbios is a French company in the field of biochemistry. It holds a number of worldwide patents. Among other things Carbios has invented an industrial application of enzymes renders plastic waste compostable. The company resides in the French sc ...

in order to promote and establish a new recycling method for used plastic bottles. This method uses enzymes to dissolve plastic very thoroughly and the final leftovers can be used to produce textiles.

Energy usage and carbon footprint

PepsiCo, along with other manufacturers in its industry, has drawn criticism from environmental advocacy groups for the production and distribution of plastic product packaging, which consumed an additional of petrochemicals in 2008. These critics have also expressed apprehension over the production volume of plastic packaging, which results in the emission of

carbon dioxide Carbon dioxide (chemical formula ) is a chemical compound made up of molecules that each have one carbon atom covalently double bonded to two oxygen atoms. It is found in the gas state at room temperature. In the air, carbon dioxide is transpar ...

. Beginning largely in 2006, PepsiCo began development of more efficient means of producing and distributing its products using less energy, while also placing a focus on

emissions reduction Air pollution is the contamination of air due to the presence of substances in the atmosphere that are harmful to the health of humans and other living beings, or cause damage to the climate or to materials. There are many different types ...

. In a comparison of 2009

energy usage Energy consumption is the amount of energy used. Biology In the body, energy consumption is part of energy homeostasis. It derived from food energy. Energy consumption in the body is a product of the basal metabolic rate and the physical activit ...

with recorded usage in 2006, the company's per-unit use of energy was reduced by 16 percent in its beverage plants and 7 percent in snack plants. In 2009, Tropicana (owned by PepsiCo) was the first brand in the U.S. to determine the

carbon footprint A carbon footprint is the total greenhouse gas (GHG) emissions caused by an individual, event, organization, service, place or product, expressed as carbon dioxide equivalent (CO2e). Greenhouse gases, including the carbon-containing gases carbo ...

of its

orange juice Orange juice is a liquid extract of the orange tree fruit, produced by squeezing or reaming oranges. It comes in several different varieties, including blood orange, navel oranges, valencia orange, clementine, and tangerine. As well as vari ...

product, as certified by the

Carbon Trust The Carbon Trust was developed and launched in 1999-2001 as part of the development of the Climate Change Levy (CCL), a tax on business energy use that still operates today. The Carbon Trust was originally funded by around £50m of tax revenue ge ...

, an outside auditor of carbon emissions. Also in 2009, PepsiCo began the test deployment of so-called "green

vending machines A vending machine is an automated machine that provides items such as snacks, beverages, cigarettes, and lottery tickets to consumers after cash, a credit card, or other forms of payment are inserted into the machine or otherwise made. The fir ...

", which reduce energy usage by 15 percent in comparison to average models in use. It developed these machines in coordination with

Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by Irving Stowe and Dorothy Stowe, immigrant environmental activists from the United States. Greenpeace states its goal is to "ensure the ability of the Earth t ...

, which described the initiative as "transforming the industry in a way that is going to be more

climate Climate is the long-term weather pattern in an area, typically averaged over 30 years. More rigorously, it is the mean and variability of meteorological variables over a time spanning from months to millions of years. Some of the meteorologic ...

-friendly to a great degree."

Product nutrition

According to its 2009 annual report, PepsiCo states that it is "committed to delivering sustainable growth by investing in a healthier future for people and our planet," which it has defined in its mission statement since 2006 as "Performance with Purpose". According to news and magazine coverage on the subject in 2010, the objective of this initiative is to increase the number and variety of healthier food and beverage products made available to its customers, employ a reduction in the company's

environmental impact Environmental issues are effects of human activity on the biophysical environment, most often of which are harmful effects that cause environmental degradation. Environmental protection is the practice of protecting the natural environment on t ...

, and to facilitate

diversity Diversity, diversify, or diverse may refer to: Business *Diversity (business), the inclusion of people of different identities (ethnicity, gender, age) in the workforce *Diversity marketing, marketing communication targeting diverse customers * ...

and healthy lifestyles within its employee base. Its activities in regards to the pursuit of its goals—namely environmental impacts of production and the nutritional composition of its products—have been the subject of recognition from health and environmental advocates and organizations, and at times have raised concerns among its critics. As the result of a more recent focus on such efforts, "critics consider (PepsiCo) to be perhaps the most proactive and progressive of the food companies", according to former ''

New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...

'' food industry writer Melanie Warner in 2010.

Product diversity

From its founding in 1965 until the early 1990s, the majority of PepsiCo's product line consisted of carbonated soft drinks and convenience

snacks A snack is a small portion of food generally Eating, eaten between meals. Snacks come in a variety of forms including packaged snack foods and other processed foods, as well as items made from fresh ingredients at home. Traditionally, snack ...

. PepsiCo broadened its product line substantially throughout the 1990s and 2000s with the acquisition and development of what its CEO deemed as "good-for-you" products, including

Quaker Oats The Quaker Oats Company, known as Quaker, is an American food conglomerate based in Chicago. It has been owned by PepsiCo since 2001. History Precursor miller companies In the 1850s, Ferdinand Schumacher and Robert Stuart founded oat mills. Sc ...

, Naked Juice, and Tropicana orange juice. Sales of such healthier-oriented PepsiCo brands totaled US$10 billion in 2009, representing 18 percent of the company's total revenue in that year. This movement into a broader, healthier product range has been moderately well received by nutrition advocates; though commentators in this field have also suggested that PepsiCo market its healthier items as aggressively as less-healthy core products. In response to shifting consumer preferences and in part due to increasing governmental regulation, PepsiCo in 2010 indicated its intention to grow this segment of its business, forecasting that sales of fruit, vegetable,

whole grain A whole grain is a grain of any cereal and pseudocereal that contains the endosperm, germ, and bran, in contrast to refined grains, which retain only the endosperm. As part of a general healthy diet, consumption of whole grains is associated w ...

, and

fiber Fiber or fibre (from la, fibra, links=no) is a natural or artificial substance that is significantly longer than it is wide. Fibers are often used in the manufacture of other materials. The strongest engineering materials often incorpora ...

-based products will amount to US$30 billion by 2020. To meet this intended target, the company has said that it plans to acquire additional health-oriented brands while also making changes to the composition of existing products that it sells.

Ingredient changes in Pepsi

Public health advocates have suggested that there may be a link between the ingredient makeup of PepsiCo's core snack and carbonated soft drink products and rising rates of health conditions such as

obesity Obesity is a medical condition, sometimes considered a disease, in which excess body fat has accumulated to such an extent that it may negatively affect health. People are classified as obese when their body mass index (BMI)—a person's we ...

and

diabetes Diabetes, also known as diabetes mellitus, is a group of metabolic disorders characterized by a high blood sugar level ( hyperglycemia) over a prolonged period of time. Symptoms often include frequent urination, increased thirst and increased ap ...

. The company aligns with personal responsibility advocates, who assert that food and beverages with higher proportions of sugar or salt content are fit for consumption in moderation by individuals who also exercise on a regular basis. Changes to the composition of its products with nutrition in mind have involved reducing fat content, moving away from trans-fats, and producing products in calorie-specific

serving size A serving size or portion size is the amount of a food or drink that is generally served. A distinction is made between a portion size as determined by an external agent, such as a food manufacturer, chef, or restaurant, and a 'self selected p ...

s to discourage

overconsumption Overconsumption describes a situation where a consumer overuses their available goods and services to where they can't, or don't want to, replenish or reuse them. In microeconomics, this may be described as the point where the marginal cost of ...

, among other changes. One of the earlier ingredient changes involved sugar and caloric reduction, with the introduction of

Diet Pepsi Diet Pepsi is a Diet drink, diet carbonation, carbonated cola soft drink produced by PepsiCo, introduced in 1964 as a variant of Pepsi with no sugar. First test marketed in 1963 under the name Patio (soda), Patio Diet Cola, it was re-branded as ' ...

in 1964 and

Pepsi Max Pepsi Max (also known as Pepsi Black in some countries) is a low- calorie, sugar-free cola, marketed by PepsiCo as an alternative to Pepsi and Diet Pepsi. Pepsi Max is still available primarily in Asian and European markets. While Pepsi Max ...

in 1993—both of which are variants of their full-calorie counterpart,

Pepsi Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961. History Pepsi was ...

. More recent changes have consisted of saturated fat reduction, which

Frito-Lay Frito-Lay is an American subsidiary of PepsiCo that manufactures, markets, and sells corn chips, potato chips, and other snack foods. The primary snack food brands produced under the Frito-Lay name include Fritos corn chips, Cheetos cheese-fla ...

reduced by 50% in

Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...

and Ruffles potato chips in the U.S. between 2006 and 2009. Also in 2009, PepsiCo's Tropicana brand introduced a new variation of orange juice (Trop50) sweetened in part by the plant Stevia, which reduced calories by half. Since 2007, the company also made available lower-calorie variants of

Gatorade Gatorade is an American brand of sports-themed beverage and food products, built around its signature line of sports drinks. Gatorade is currently manufactured by PepsiCo and is distributed in over 80 countries. The beverage was first develop ...

, which it calls "G2". On May 5, 2014, PepsiCo announced that the company would remove the flame retardant chemical known as "Brominated Vegetable Oil" from many of its products, but a time-frame was not discussed.

Distribution to children

As public perception placed additional scrutiny on the marketing and distribution of carbonated soft drinks to children, PepsiCo announced in 2010 that by 2012, it will remove beverages with higher sugar content from primary and secondary schools worldwide. It also, under voluntary guidelines adopted in 2006, replaced "full-calorie" beverages in U.S. schools with "lower-calorie" alternatives, leading to a 95 percent reduction in the 2009 sales of full-calorie variants in these schools in comparison to the sales recorded in 2004. In 2008, in accordance with guidelines adopted by the International Council of Beverages Associations, PepsiCo eliminated the advertising and marketing of products that do not meet its nutrition standards, to children under the age of 12. In 2010, Michelle Obama initiated a campaign to end childhood obesity (titled ''

Let's Move! Let's Move! is a public health campaign in the United States led by First Lady Michelle Obama. The campaign aimed to reduce childhood obesity and encourage a healthy lifestyle in children. The initiative had the initially stated goal of "so ...

''), in which she sought to encourage healthier food options in public schools, improved food nutrition labeling, and increased

physical activity Physical activity is defined as any voluntary bodily movement produced by skeletal muscles that requires energy expenditure.Global Recommendations on Physical Activity for Health, 2009. World Health Organization. Geneva, Switzerland. Accessed 13/ ...

for children. In response to this initiative, PepsiCo, along with food manufacturers

Campbell Soup Campbell Soup Company, doing business as Campbell's, is an American processed food and snack company. The company is most closely associated with its flagship canned soup products; however, through mergers and acquisitions, it has grown to become ...

, Coca-Cola,

General Mills General Mills, Inc., is an American multinational manufacturer and marketer of branded processed consumer foods sold through retail stores. Founded on the banks of the Mississippi River at Saint Anthony Falls in Minneapolis, the company orig ...

, and others in an alliance referred to as the "

Healthy Weight Commitment Foundation The Healthy Weight Commitment Foundation is an organization of American food and beverage companies formed with the stated aim of decreasing the number of calories in the U.S. marketplace. It was announced in October 2009, by the then-CEO of Kello ...

", announced in 2010 that the companies will collectively cut one trillion calories from their products sold by the end of 2012 and 1.5 trillion calories by the end of 2015.

References

External links

*
PepsiCo, FritoLay and Pepsi-Cola Annual Reports (1938-2017)
Archive of Annual Reports, Internet Archive {{Authority control 1965 establishments in North Carolina American companies established in 1965 1960s initial public offerings Companies based in Purchase, New York Companies formerly listed on the New York Stock Exchange Companies listed on the Nasdaq Conglomerate companies established in 1965 Conglomerate companies of the United States Drink companies of the United States Food and drink companies based in New York (state) Food and drink companies established in 1965 Companies that filed for Chapter 11 bankruptcy in 1923 Companies that filed for Chapter 11 bankruptcy in 1931 Multinational companies headquartered in the United States Multinational food companies

History

Origins

Acquisitions and divestments

Competition

Soviet Union

Finances

Products and brands

Business divisions

PepsiCo Beverages North America

Frito-Lay North America

Quaker Foods North America

Latin America

Europe

, Middle East, South Asia (AMESA)

Pacific, Australia/New Zealand, China (APAC)

Corporate governance

Headquarters

Charitable activities

Working conditions

Environmental record

Rainforests and palm oil

Genetically modified ingredients

Water usage (India, U.S., U.K.)

Pesticide regulation (India)

Packaging and recycling

Energy usage and carbon footprint

Product nutrition

Product diversity

Ingredient changes in Pepsi

Distribution to children

See also

References

External links