PepsiCo Inc. History
The origin of PepsiCo Inc. began with its namesake beverage, Pepsi-Cola, invented by a pharmacist named Caleb Bradham in 1898 in New Bern, North Carolina. With its main ingredients pepsin and kola nuts, Pepsi-Cola offered a refreshing drink that was healthy and capable of aiding in digestion brought about by the pepsin enzyme found in the soda. Well received by the public, Pepsi Cola was soon patented in 1902 and was readily available throughout 24 states in America by 1910. In 1935, the Pepsi-Cola Company founded by Caleb Bradham went bankrupt and was bought out by Charles Guth. During this time another company by the name of Frito-Lay started building a business relationship with Pepsi-Cola in hopes to diversify Pepsi-Cola’s products. By 1945, the two companies began working together and in 1965, PepsiCo Inc. was formed with the merger of the two companies: Pepsi-Cola and Frito-Lay. Headquartered in Purchase, New York, United States, PepsiCo Inc. specializes in the manufacturing, marketing and distribution of grain-based snacks and carbonated beverages. It is a global company that offers its products in North America, South America, Europe, Middle East, Asia and Africa. Over the past years, PepsiCo Inc. has grown to be distributed throughout 200 countries around the globe and has since expanded from its namesake product, Pepsi, to a wide range of food and beverage brands, acquiring Tropicana in 1998, and a merger with Quaker Oats in 2001 – adding Gatorade as its products. Most of PepsiCo's market share is derived from the Americas with Asia and Europe offering 13% and 16% market share, respectively. Today, PepsiCo Inc.'s products offered include packaged goods and beverages with its product mix consisting of 52% beverage and 48% foods. Beverages include 76 flavors of Pepsi-Cola, varieties of Tropicana, and Gatorade. Package foods include a Doritos, Ruffles, Cheetos, Lays, Tostitos, Cracker Jacks, etc. (Pepsi beverage brand holding a significant market offering). Over the past 5 decades, PepsiCo Inc.'s market share has grown steadily to become and remain the top major snacks and beverage provider worldwide. From its incorporation, the company has grown itself by acquiring and divesting many large businesses including but not short of Pizza Hut, Taco Bell, KFC, and Wilson Sporting Goods. Its long standing battle between the Coca-Cola Company has always fueled the decisions the macro-snack company has made over the course of its business and in 2005, PepsiCo Inc. had surpassed the Coca-Cola Company in net revenues. Its most recent net revenues reported were $43.3 billion globally (2011) and it remains the largest food/beverage business in North America and second largest food and beverage business in the world. Looking to 2012, Indra K. Nooyi, Chairman and Chief Executive Officer of PepsiCo Inc., stated, "The greatest challenge in the business [PepsiCo Inc.] today is to renew a successful company - positioning it for long-term growth and profitability while performing in the current marketplace." Within the past several years, PepsiCo. Inc. has been partnering with healthy-choice snacks to expand their portfolio with little focus on their core capability, Pepsi Cola beverage. With a vigorous 5 year project started in 2007 and implemented in the beginning of 2012, the Pepsi Cola will be focused on marketing its core product, the Pepsi Cola beverage, during 2012 and the years to come by increasing advertising expenditure to $500-600 million in 2012 and efficiently managing their revenues and costs in the macro-snack business. As required, PepsiCo Inc. publicly discloses its financial data to the SEC (Security and Exchange Commission) via the EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system. This system automates the filing process for PepsiCo and allows present and future investors to contemplate on its financial position. Investors can look up PepsiCo by their Ticker Symbol, PEP,...
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