The Pepsi Company

Topics: PepsiCo, Pepsi, Coca-Cola Pages: 6 (2103 words) Published: February 27, 2011
PepsiCo, Incorporated is one of the largest Fortune 500 companies in the world. It got its start as the Pepsi Cola Company in 1898 when a pharmacist from Chinquapin, North Carolina. A pharmacist named Caleb Bradham invented the Pepsi Cola soft drink. The soft drink was originally named “Brad’s Drink” but was later renamed “Pepsi-Cola” combining the terms “pepsin” and “cola.” Along with selling the soda concoction the many soda fountains, Bradham also bottled and sold the drink in his own stores. Later, he would shut down his drugstore and focus entirely on the soft drink enterprise. Over the next few years the company would grow, earning more and more distributors in its expansion. By 1910 the company had signed agreements with 250 bottlers and the annual production of the beverage had exceeded one million galloons. Unfortunately, the sugar rationing during World War I caused the company suffer a great deal and it ended up declaring bankruptcy several times. Eventually, after numerous owners and operators, the company fell under new leadership as Walter S. Mack, Jr. took control and guided the company through the forties decade. Mack set up a board of directors, hired an advertising agency, and led the company through yet another sugar rationing during World War II. He was appointed a company chairman in 1950. It was at that point that Alfred N. Steele, a former Coca-Cola vice president of sales, took over as president and chief executive officer of Pepsi Cola Inc. Steele ran the company for nearly a decade before dying of a heart attack in 1959. His wife, Joan Crawford, and leading spokes person for the company’s advertising campaign was appointed a board member. By 1963, the head of Pepsi-Cola International had risen to the top of the Pepsi empire. Finally, the company combined with Frito Lay in 1965 founding PepsiCo, Incorporated and making Donald M. Kendall President and Chief Executive Officer and Herman W. Lay, the founder of Frito Lay, chairman of the Board of Directors of the new company. Throughout the next few decades, PepsiCo established countless new products and enterprises and generated unbelievable success. In 1970, the company’s sales pass the one billion dollar mark and the company headquarters moves to Purchase, New York. In 1971, Kendall assumes the position of chairman of the Board of Directors and Andrall E. Pearson is appointed president. In 1977, the company passes the three billion dollar sales mark and acquires Pizza Hut, Inc. Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced in 1983. In 1986, PepsiCo passes $10 billion in sales. In the year 1989, the corporation became number 23 in the Fortune 500 company rankings with sales of $15.4 billion. In 1995, it will introduce Lay's brand potato chips in 20 markets throughout the world and establish presence on-line at Pepsi World at will be launched the following year. Until 1997, it owned KFC, Pizza Hut, and Taco Bell, but they were spun off into Tricon Global Restaurants. The 21st century brought upon even more growth and success for the PepsiCo. In 2005, the company surpassed the Coca-Cola Company in market value. Today, PepsiCo is number fifty on the Fortune 500 list and still produces a myriad of refreshments and foods with revenues of more than $43 billion and employs over 198,000 people worldwide.

There is no doubt that PepsiCo got where it is today by calculating careful business strategies. The company’s mission is “to increase the value of our shareholder's investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.” The following all...
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