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PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo
PepsiCo
has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo
PepsiCo
was formed in 1965 with the merger of the Pepsi- Cola
Cola
Company and Frito-Lay, Inc. PepsiCo
PepsiCo
has since expanded from its namesake product Pepsi
Pepsi
to a broader range of food and beverage brands, the largest of which included an acquisition of Tropicana Products
Tropicana Products
in 1998 and the Quaker Oats Company
Quaker Oats Company
in 2001, which added the Gatorade
Gatorade
brand to its portfolio. As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion apiece,[2] and the company's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo
PepsiCo
is the second largest food and beverage business in the world. Within North America, PepsiCo
PepsiCo
is the largest food and beverage business by net revenue. Indra Nooyi
Indra Nooyi
has been the chief executive of PepsiCo
PepsiCo
since 2006. The company's beverage distribution and bottling is conducted by PepsiCo
PepsiCo
as well as by licensed bottlers in certain regions. Approximately 274,000 employees[3] generated $66.415 billion in revenue as of 2013.[4]

Contents

1 History

1.1 Origins 1.2 Acquisitions and divestments 1.3 Competition

2 Products and brands 3 Business divisions

3.1 North America Beverages 3.2 Frito-Lay
Frito-Lay
North America 3.3 Quaker Foods North America 3.4 Latin America 3.5 Europe and Sub-Saharan Africa 3.6 Asia, Middle East and North Africa

4 Corporate governance

4.1 Headquarters 4.2 Charitable activities

5 Environmental record and product nutrition

5.1 Environmental record

5.1.1 Rainforests and palm oil 5.1.2 Genetically Modified Food Ingredients 5.1.3 Water usage (India, U.S., U.K.) 5.1.4 Pesticide regulation (India) 5.1.5 Packaging
Packaging
and recycling 5.1.6 Energy usage and carbon footprint

5.2 Product nutrition

5.2.1 Product diversity 5.2.2 Ingredient
Ingredient
changes in Pepsi 5.2.3 Distribution to children

6 See also 7 References 8 External links

History[edit] Origins[edit] The recipe for the soft drink Pepsi
Pepsi
was first developed in the 1880s by Caleb Bradham, a pharmacist and industrialist from New Bern, North Carolina. He coined the name "Pepsi-Cola" in 1898. As the cola developed in popularity, he created the Pepsi- Cola
Cola
Company in 1902 and registered a patent for his recipe in 1903.[5] The Pepsi- Cola
Cola
Company was first incorporated in the state of Delaware
Delaware
in 1919.[6] The company went bankrupt in 1931 and on June 8 of that year, the trademark and syrup recipe were purchased by Charles Guth, who owned a syrup manufacturing business in Baltimore. Guth was also the president of Loft, Incorporated, a leading candy manufacturer, and he used the company's labs and chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large chain of candy shops and restaurants, which were known for their soda fountains, 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
Cola
Company in the landmark case Guth v. Loft Inc.
Guth v. Loft Inc.
Loft won the suit and on May 29, 1941 formally absorbed Pepsi
Pepsi
into Loft, which was then re-branded as Pepsi- Cola
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
Pepsi
and purchase of Mountain Dew.[7] In 1965, the Pepsi- Cola
Cola
Company merged with Frito-Lay, Inc. to become PepsiCo, Inc. At the time of its foundation, PepsiCo
PepsiCo
was incorporated in the state of Delaware
Delaware
and headquartered in Manhattan, New York. The company's headquarters were relocated to their present location of Purchase, New York
Purchase, New York
in 1970,[8] and in 1986 PepsiCo
PepsiCo
was reincorporated in the state of North Carolina.[6] Acquisitions and divestments[edit] Between the late-1970s and the mid-1990s, PepsiCo
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.[9] PepsiCo
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.[10] Brands formerly owned by PepsiCo
PepsiCo
include: Pizza Hut,[11] Taco Bell,[11] KFC,[11] Hot 'n Now,[12] East Side Mario's,[13] D'Angelo Sandwich Shops,[14] Chevys Fresh Mex, California Pizza Kitchen,[15] Stolichnaya[16] (via licensed agreement), Wilson Sporting Goods,[17] and North American Van Lines.[18] The divestments concluding in 1997 were followed by multiple large-scale acquisitions, as PepsiCo
PepsiCo
began to extend its operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo
PepsiCo
purchased the orange juice company Tropicana Products in 1998,[19] and merged with Quaker Oats Company
Quaker Oats Company
in 2001,[20] adding with it the Gatorade
Gatorade
sports drink line and other Quaker Oats brands such as Chewy Granola Bars
Chewy Granola Bars
and Aunt Jemima, among others.[21] In August 2009, PepsiCo
PepsiCo
made a $7 billion offer to acquire the two largest bottlers of its products in North America: Pepsi
Pepsi
Bottling Group and PepsiAmericas. In 2010 this acquisition was completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi
Pepsi
Beverages
Beverages
Company.[22] 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.[23] When it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo
PepsiCo
became the largest food and beverage company in Russia.[24][25] In July 2012, PepsiCo
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.[26] The joint venture was dissolved in December 2015.[27] Competition[edit] The Coca-Cola Company
The Coca-Cola Company
has historically been considered PepsiCo's primary competitor in the beverage market,[28] and in December 2005, PepsiCo
PepsiCo
surpassed The Coca-Cola Company
The Coca-Cola Company
in market value for the first time in 112 years since both companies began to compete. In 2009, The Coca- Cola
Cola
Company held a higher market share in carbonated soft drink sales within the U.S.[29] In the same year, PepsiCo
PepsiCo
maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies.[29] As a result of mergers, acquisitions, and partnerships pursued by PepsiCo
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.[30] Beverages
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
and Tropicana.[29] PepsiCo's Frito-Lay
Frito-Lay
and Quaker Oats
Quaker Oats
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.[29] One of PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the same year held 11 percent of the U.S. snack market share.[29] Other competitors for soda are RC Cola, Cola
Cola
Turka, Kola Real, Inca Kola, Zamzam Cola, Mecca-Cola, Virgin Cola, Parsi Cola, Qibla Cola, Evoca Cola, Corsica Cola, Breizh Cola, and Afri Cola. Products and brands[edit]

Largest PepsiCo
PepsiCo
Brands based on 2009 retail sales

Brand

Pepsi

Mountain Dew

Lay's
Lay's
potato chips

Gatorade

Diet Pepsi

Tropicana beverages

7 Up
7 Up
(outside U.S.)

Doritos
Doritos
tortilla chips

Lipton
Lipton
teas (PepsiCo/ Unilever
Unilever
partnership)

Quaker foods and snacks

Cheetos

Mirinda

Ruffles
Ruffles
potato chips

Aquafina
Aquafina
bottled water

Pepsi
Pepsi
Max

Tostitos
Tostitos
tortilla chips

Mist Twst

Fritos
Fritos
corn chips

Walkers potato crisps

Source: 2009 PepsiCo
PepsiCo
Annual Report[31]    $0               $5b              $10b              $15b                $20b

PepsiCo's product mix as of 2015 (based on worldwide net revenue) consists of 53 percent foods, and 47 percent beverages.[32] On a worldwide basis, the company's current products lines include several hundred brands that in 2009 were estimated to have generated approximately $108 billion in cumulative annual retail sales.[31] The primary identifier of a food and beverage industry main brand is annual sales over $1 billion. As of 2015, 22 PepsiCo
PepsiCo
brands met that mark, including: Pepsi, Diet Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, 7 Up, Doritos, Lipton
Lipton
Teas, Brisk, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Naked, Kevita, Propel, Sobe, H2oh, Sabra, Starbucks
Starbucks
(ready to Drink Beverages), Pepsi
Pepsi
Max, Tostitos, Mist Twst, Fritos, and Walkers.[33] Business divisions[edit] The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of 2016 it is separated into six main divisions: North America Beverages, Frito-Lay
Frito-Lay
North America, Quaker Foods North America, Latin America, Europe and Sub-Saharan African, and Asia, Middle East and North Africa.[34] As of 2015, 73 percent of the company's net revenues came from North and South America; 17 percent from Europe and Sub-Saharan Africa; and 10 percent from Asia, the Middle East, and Africa.[32] PepsiCo
PepsiCo
and its combined subsidiaries employed approximately 263,000 people worldwide as of December 2015.[35] North America Beverages[edit] This division contributed 33 percent of PepsiCo's net revenue as of 2015,[32] and involves the manufacture (and in some cases licensing), marketing and sales of both carbonated and non-carbonated beverages in North America.[36] The main brands distributed under this division include Pepsi, Mountain Dew, Gatorade, 7 Up
7 Up
(outside the U.S.), Tropicana Pure Premium orange juice, Mist Twst, SoBe
SoBe
Lifewater, Tropicana juice drinks, AMP Energy, Naked Juice, and Izze. Aquafina, the company's bottled water brand, is also marketed and licensed through North America Beverages.[37] In 2015, PepsiCo
PepsiCo
also introduced Stubborn Soda, a line of carbonated beverages without high fructose corn syrup.[38] PepsiCo
PepsiCo
also has formed partnerships with several beverage brands it does not own, in order to distribute or market them with its own brands.[37] As of 2010, its partnerships include: Starbucks (Frappuccino, DoubleShot, and Iced Coffee), Unilever's Lipton
Lipton
brand ( Lipton
Lipton
Brisk and Lipton
Lipton
Iced Tea), and Dole (licensed juices and drinks). Frito-Lay
Frito-Lay
North America[edit] Frito-Lay
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 and include Lay's
Lay's
and Ruffles
Ruffles
potato chips; Doritos
Doritos
tortilla chips; Tostitos
Tostitos
tortilla chips and dips; Cheetos
Cheetos
cheese flavored snacks; Fritos
Fritos
corn chips; Rold Gold pretzels; Sun Chips; and Cracker Jack 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.[39] The division contributed 23 percent of PepsiCo's net revenue in 2015.[32] Until November 2009, Christopher Furman, President of Ventura Foods Inc., occupied the position of Food Services CEO.[31][40][41] Quaker Foods North America[edit] Quaker Foods North America, created following PepsiCo's acquisition of the Quaker Oats Company
Quaker Oats Company
in 2001, manufactures, markets, and sells Quaker Oatmeal, Rice-A-Roni, Cap'n Crunch, and Life cereals, as well as Near East
Near East
side dishes within North America. This division also owns and produces the Aunt Jemima
Aunt Jemima
brand, which as of 2009 was the top selling line of syrups and pancake mixes within this region.[29][42] Sabritas and Gamesa are two of PepsiCo's food and snack business lines headquartered in Mexico, and they were acquired by PepsiCo
PepsiCo
in 1966 and 1990, respectively. Sabritas markets Frito-Lay
Frito-Lay
products in Mexico, including local brands such as Poffets, Rancheritos, Crujitos, and Sabritones. Gamesa is the largest manufacturer of cookies in Mexico, distributing brands such as Emperador, Arcoiris and Marías Gamesa.[43] The division contributed 4 percent of PepsiCo's net revenues in 2015.[32] Latin America[edit] PepsiCo's Latin America Foods (Spanish: Snacks
Snacks
América Latina) operations market and sell primarily Quaker- and Frito-Lay-branded snack foods within Central and South America, including Argentina, Brazil, Peru, and other countries in this region.[44] Snacks
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.[45] The company started a new market strategy to sell their Pepsi
Pepsi
Cola product in Mexico, stating that about one third of the population has difficulty pronouncing "Pepsi". They started manufacturing and selling their product under the label 'Pécsi', the advertisement campaign features the Mexican soccer celebrity Cuauhtémoc Blanco. This is not the first time it has happened, back in 2009, PepsiCo
PepsiCo
used the same strategy successfully in Argentina.[46][47] Pepsico will market and distribute Starbucks
Starbucks
products in several Latin American countries for 2016.[48] The division contributed 13 percent of PepsiCo's net revenues in 2015.[32] Europe and Sub-Saharan Africa[edit]

Lay's
Lay's
is a brand of chips in the United States

Walkers is Lay's
Lay's
UK brand

PepsiCo
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.[32] Unlike PepsiCo's Americas business segments, both foods and beverages are manufactured and marketed under one umbrella division in this region, known as PepsiCo
PepsiCo
Europe. The primary brands sold by PepsiCo
PepsiCo
in Europe include Pepsi- Cola
Cola
beverages, Frito-Lay
Frito-Lay
snacks, Tropicana juices, and Quaker food products, as well as regional brands unique to Europe such as Walkers crisps, Copella, Paw Ridge, Snack-a-Jack, Duyvis, and others. PepsiCo
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
Lay's
and Simba chips.[37] PepsiCo's European presence expanded in Russia in 2009 as the company announced a $1B investment,[49] 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.[50] Asia, Middle East and North Africa[edit] The most recently created operating division of PepsiCo
PepsiCo
covers Asia, the Middle East and Africa.[30] In addition to the production and sales of several worldwide Pepsi-Cola, Quaker Foods, and Frito-Lay beverage and food product lines (including Pepsi
Pepsi
and Doritos), this segment of PepsiCo's business markets regional brands such as Mirinda, Kurkure, and Red Rock Deli, among others.[37] While PepsiCo
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 (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 worldwide.[32] In August 2012, PepsiCo
PepsiCo
signed an agreement with a local Myanmar distributor to sell its soft drinks after a 15-year break to re-enter the country.[51] Corporate governance[edit] Headquartered in Purchase, New York, with research and development headquarters in Valhalla, New York, PepsiCo's Chairman
Chairman
and CEO is Indra Nooyi.[52] The board of directors is composed of eleven outside directors as of 2010, including Ray Lee Hunt, Shona Brown, Victor Dzau, Arthur C. Martinez, Sharon Percy Rockefeller, Daniel Vasella, Dina Dublon, Ian M. Cook, Alberto Ibargüen, and Lloyd G. Trotter. Former top executives at PepsiCo
PepsiCo
include Steven Reinemund, Roger Enrico, D. Wayne Calloway, John Sculley, Michael H. Jordan, Donald M. Kendall, Christopher A. Sinclair, Irene Rosenfeld, David C. Novak, Brenda C. Barnes, and Alfred Steele. On October 1, 2006, former Chief Financial Officer and President Indra Nooyi replaced Steve Reinemund as Chief Executive Officer. Nooyi remained as the corporation's president, and became Chairman
Chairman
of the Board in May 2007, later (in 2010) being named No.1 on Fortune's list of the "50 Most Powerful Women"[53] and No.6 on Forbes' list of the "World's 100 Most Powerful Women".[54] PepsiCo
PepsiCo
received a 100 percent rating on the Corporate Equality Index released by the LGBT-advocate group Human Rights Campaign
Human Rights Campaign
starting in 2004, the third year of the report.[55] 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.[56] Headquarters[edit] The PepsiCo
PepsiCo
headquarters are located in the neighborhood of Purchase, New York, in the town of Harrison, New York. It was one of the last architectural works by Edward Durell Stone. 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 with 45 contemporary sculptures open to the public. Works include those of Alexander Calder, Henry Moore, and Auguste Rodin. Westchester Magazine 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.[57] At one time PepsiCo
PepsiCo
had its headquarters in 500 Park Avenue in Midtown Manhattan, New York City.[58] In 1956 PepsiCo
PepsiCo
paid $2 million for the original building.[59] PepsiCo
PepsiCo
built the new 500 Park Avenue in 1960.[60] In 1966, Mayor of New York City
Mayor of New York City
John Lindsay
John Lindsay
started a private campaign to convince PepsiCo
PepsiCo
to remain in New York City.[61] Six months later, the company announced that it was moving to 112 acres (45 ha) of the Blind Brook Polo Club in Westchester County.[62] After PepsiCo
PepsiCo
left the Manhattan
Manhattan
building, it became known as the Olivetti Building.[60] Charitable activities[edit]

Headquarters of Pepsi- Cola
Cola
Venezuela (ES)

PepsiCo
PepsiCo
has maintained a philanthropic program since 1962 called the PepsiCo
PepsiCo
Foundation,[63] in which it primarily funds "nutrition and activity, safe water and water usage efficiencies,[64] and education," according to the foundation's website.[65] In 2009, $27.9 million was contributed through this foundation, including grants to the United Way[66] and YMCA,[67] among others. In 2009, PepsiCo
PepsiCo
launched an initiative they call the Pepsi
Pepsi
Refresh Project,[68] in which individuals submit and vote on charitable and nonprofit collaborations.[69] 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
that—as a result of being selected in 2010—received $250,000 towards construction of a fitness room.[70] Following the Gulf of Mexico oil spill in the spring of 2010, PepsiCo
PepsiCo
donated $1.3 million to grant winners determined by popular vote.[71] As of October 2010, the company had provided a cumulative total of $11.7 million in funding, spread across 287 ideas of participant projects from 203 cities in North America.[72] In late 2010, the refresh project was reported to be expanding to include countries outside of North America in 2011.[73] Environmental record and product nutrition[edit] According to its 2009 annual report, PepsiCo
PepsiCo
states that it is "committed to delivering sustainable growth by investing in a healthier future for people and our planet,"[31][74] which it has defined in its mission statement since 2006 as "Performance with Purpose".[75] 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,[76] employ a reduction in the company's environmental impact,[77] and to facilitate diversity and healthy lifestyles within its employee base.[citation needed] 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
New York Times
food industry writer Melanie Warner in 2010.[78] Environmental record[edit] Rainforests and palm oil[edit] PepsiCo
PepsiCo
Palm Oil Commitments[79] published in May 2014 were welcomed by media as a positive step towards ensuring that the company's palm oil purchases will not contribute to deforestation and human rights abuses in the palm oil industry. NGOs warned[80] 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 Food Ingredients[edit] PepsiCo
PepsiCo
has contributed $1,716,300 to oppose the passage of California Proposition 37, which would mandate the disclosure of genetically modified crops used in the production of California food products.[81][82][83] PepsiCo
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."[84] Water usage (India, U.S., U.K.)[edit] 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 shortages are a perennial issue. In this setting, PepsiCo
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.[85] As a result, in 2003 PepsiCo
PepsiCo
launched a country-wide program to achieve a "positive water balance" in India by 2009.[86] In 2007, PepsiCo's CEO Indra Nooyi
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
PepsiCo
"seem(s) to be doing something serious about water now."[85] According to the company's 2009 corporate citizenship report,[74] as well as media reports at the time,[78] 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.[74] Water usage concerns have arisen at times in other countries where PepsiCo
PepsiCo
operates. In the U.S., water shortages 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.[87][88] In response, the company formed partnerships with non-profit organizations such as the Earth Institute
Earth Institute
and Water.org, and in 2009 began cleaning new Gatorade
Gatorade
bottles with purified air instead of rinsing with water, among other water conservation practices.[89] In the United Kingdom, also in response to regional drought conditions, PepsiCo
PepsiCo
snacks brand Walkers' reduced water usage at its largest potato chip 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.[90][91] As a result of water reduction practices and efficiency improvements, PepsiCo
PepsiCo
in 2009 saved more than 12 billion liters of water worldwide,[92] compared to its 2006 water usage. Environmental advocacy organizations including the Natural Resources Defense Council and individual critics such as Rocky Anderson
Rocky Anderson
(mayor of Salt Lake City, Utah) voiced concerns in 2009, noting that the company could conserve additional water by refraining from the production of discretionary products such as Aquafina.[93] 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 weight reduction.[93] Pesticide regulation (India)[edit] 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 in PepsiCo
PepsiCo
(along with those from rival The Coca- Cola
Cola
Company), exceeded a set of proposed safety standards on soft drink ingredients that had been developed by the Bureau of Indian Standards.[94] PepsiCo
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.[95][96] The ensuing dispute prompted a short-lived ban on the sale of PepsiCo
PepsiCo
and The Coca-Cola Company
The Coca-Cola Company
soft drinks within India's southwestern state of Kerala
Kerala
in 2006;[97] however this ban was reversed by the Kerala
Kerala
High Court one month later.[98] In November 2010, the Supreme Court of India
Supreme Court of India
invalidated a criminal complaint filed against PepsiCo
PepsiCo
India by the Kerala
Kerala
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."[99][100] In 2010, PepsiCo
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.[101] PepsiCo's India unit received recognition on the basis of its water conservation and safety practices and corresponding results.[102] Packaging
Packaging
and recycling[edit] Environmental advocates have raised concern over the environmental impacts surrounding the disposal of PepsiCo's bottled beverage products in particular, as bottle recycling rates for the company's products in 2009 averaged 34 percent within the U.S.[103] The company has employed efforts to minimize these environmental impacts via packaging developments combined with recycling initiatives. In 2010, PepsiCo
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.[104] One strategy enacted to reach this goal has been the placement of interactive recycling kiosks called "Dream Machines" in supermarkets, convenience stores, and gas stations, with the intent of increasing access to recycling receptacles.[105][106] The use of resin to manufacture its plastic bottles has resulted in reduced packaging weight, which in turn reduces the volume of fossil fuels required to transport certain PepsiCo
PepsiCo
products. The weight of Aquafina
Aquafina
bottles was reduced nearly 40 percent, to 15 grams, with a packaging redesign in 2009. Also in that year, PepsiCo
PepsiCo
brand Naked Juice
Naked Juice
began production and distribution of the first 100 percent post-consumer recycled plastic bottle.[107] On March 15, 2011, PepsiCo
PepsiCo
unveiled the world's first plant-based PET 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 use more by-products (of their manufacturing processes) such as orange peels and oat hulls in the bottles. PepsiCo
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", feel the same as normal PET. PepsiCo
PepsiCo
will pilot production in 2012, and upon successful completion of the pilot, intends moving to full-scale commercialization.[108] Energy usage and carbon footprint[edit] 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 1.5 billion US gallons (5,700,000 m3) 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.[109] Beginning largely in 2006, PepsiCo began development of more efficient means of producing and distributing its products using less energy,[110] while also placing a focus on emissions reduction.[109] In a comparison of 2009 energy usage 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.[74] In 2009, Tropicana (owned by PepsiCo) was the first brand in the U.S. to determine the carbon footprint of its orange juice product, as certified by the Carbon Trust, an outside auditor of carbon emissions.[111] Also in 2009, PepsiCo
PepsiCo
began the test deployment of so-called "green vending machines", which reduce energy usage by 15 percent in comparison to average models in use. It developed these machines in coordination with Greenpeace, which described the initiative as "transforming the industry in a way that is going to be more climate-friendly to a great degree."[111] Product nutrition[edit] Product diversity[edit] From its founding in 1965 until the early 1990s, the majority of PepsiCo's product line consisted of carbonated soft drinks and convenience snacks. PepsiCo
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, Naked Juice, and Tropicana orange juice.[112] Sales of such healthier-oriented PepsiCo
PepsiCo
brands totaled $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
PepsiCo
market its healthier items as aggressively as less-healthy core products.[113] In response to shifting consumer preferences and in part due to increasing governmental regulation, PepsiCo
PepsiCo
in 2010 indicated its intention to grow this segment of its business, forecasting that sales of fruit, vegetable, whole grain, and fiber-based products will amount to $30 billion by 2020.[114] 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.[114] Ingredient
Ingredient
changes in Pepsi[edit] 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 and diabetes. 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.[115] 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 sizes to discourage overconsumption, among other changes.[76] One of the earlier ingredient changes involved sugar and caloric reduction, with the introduction of Diet Pepsi
Pepsi
in 1964 and Pepsi
Pepsi
Max in 1993—both of which are variants of their full-calorie counterpart, Pepsi. More recent changes have consisted of saturated fat reduction, which Frito-Lay
Frito-Lay
reduced by 50% in Lay's
Lay's
and Ruffles
Ruffles
potato chips in the U.S. between 2006 and 2009.[115] 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.[115] Since 2007, the company also made available lower-calorie variants of Gatorade, which it calls "G2".[116] On May 5, 2014, PepsiCo
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.[117] Distribution to children[edit] As public perception placed additional scrutiny on the marketing and distribution of carbonated soft drinks to children, PepsiCo
PepsiCo
announced in 2010 that by 2012, it will remove beverages with higher sugar content from primary and secondary schools worldwide.[118] 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.[119] In 2008, in accordance with guidelines adopted by the International Council of Beverages
Beverages
Associations, PepsiCo
PepsiCo
eliminated the advertising and marketing of products that do not meet its nutrition standards, to children under the age of 12.[120][121] In 2010, First Lady
First Lady
Michelle Obama
Michelle Obama
initiated a campaign to end childhood obesity (titled Let's Move!), in which she sought to encourage healthier food options in public schools, improved food nutrition labeling, and increased physical activity for children. In response to this initiative, PepsiCo, along with food manufacturers Campbell Soup, Coca-Cola, General Mills, and others in an alliance referred to as the "Healthy Weight Commitment Foundation", 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.[122] See also[edit]

Cola
Cola
wars Joan Crawford List of assets owned by PepsiCo Pepsi
Pepsi
Stuff

References[edit]

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Pepsi

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