You Are an Investment Analyst
Prof. Dane Bowman
ACC557 – 009 Financial Accounting
December 18, 2012
“Brad’s drink” was created in the summer of 1893 by pharmacist Caleb Bradham of New Bern, North Carolina. The drink was renamed Pepsi Cola in 1898, after pepsin and cola nuts were used in the recipe. Also in 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from Newark, New Jersey that had gone broke. The new name was trademarked on June 16th, 1903. Bradham's neighbor, an artist designed the first Pepsi logo and ninety-seven shares of stock for Bradham's new company were issued (Bellis, 2012). After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the fluctuations of sugar prices during W.W.I, believing that sugar prices would continue to rise but they fell instead leaving Caleb Bradham with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923. In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G. Guth who reformulated the popular soft drink. Guth struggled to make a success of Pepsi and even offered to sell Pepsi to the Coca-Cola company, who refused to offer a bid (Bellis, 2012). In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. The soft drink was first sold to the public at the soda fountain in Jacob’s Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expanses, so the first year of sales were a loss (Bellis, 2012). In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca Cola was one of America’s most popular fountain drinks, largely due to Candler’s aggressive marketing of the product. With Asa Candler, now at the helm, the Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900. Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants became popular (Bellis, 2012). Products and Services
PepsiCo is a global food and beverage leader with a diverse product portfolio that includes 22 brands that each generate more than $1 billion each in annual retail sales. Pepsi-Cola North America is the refreshment beverage unit of PepsiCo, Inc., in the United States and Canada. Its U.S. brands include Pepsi, Mountain Dew, Sierra Mist, SoBe, AMP Energy, IZZE, Naked Juice, Propel, Mug, and Aquafina, among others. The company also makes and markets North America’s best-selling ready-to-drink iced teas and coffees, respectively, via joint ventures with Lipton and Starbucks (PepsiCo, 2012). Frito-Lay North America is the $13 billion convenient foods business unit of PepsiCo. For more than 75 years, Frito Lay has enjoyed growing the best snacks on earth starting with simple, farm-grown ingredients. To continue growing the best snacks on earth, they are working to reduce their impact on the environment by improving how they make their snacks. Frito-Lay is also dedicated to giving consumers a wider range of healthier choices. They offer great-tasting chips with less fat through their Baked! Line and snacks made only from natural ingredients, which contain no artificial colors, flavors or preservatives with their Natural line. All of their snack chips contain 0 grams of trans fat (PepsiCo, 2012). Tropicana Products, Inc., a division of PepsiCo, Inc.,...
Please join StudyMode to read the full document