Company Profile Presentation

CHRISTOPHER IMALLA
PEPSI CO, Inc.
Corporate Type: Public (NYSE: PEP)

Pepsi Co. manufactures, markets and sells various carbonated and non-
carbonated beverages as well as snack food worldwide.

The company was founded in 1898 and is headquartered in Purchase, New York.

The company’s revenue is more than $39 billion(2007) and employs over 1, 85,000
employees.

The company’s products are sold in approximately 200 countries.

 Brief Background:

The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern,
North Carolina.

Pepsi was originally named "Brad's Drink", after its creator, a pharmacist.

It was created in the year 1893 and was re-named as Pepsi in 1898, possibly due
the digestive enzyme pepsin and kola nuts used in the recipe.

The brand was trademarked on June 16, 1903.

In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression- in
large part due to financial losses incurred by speculating on wildly fluctuating
sugar prices as a result of World War I.

Assets were sold and Roy C. Megargel bought the Pepsi trademark.

Eight years later, the company went bankrupt again. Pepsi's assets were then
purchased by Charles Guth, the President of Loft Inc.
Loft was a candy manufacturer with retail stores that contained soda fountains. He
sought to replace Coca-Cola at his stores fountains after Coke refused to give him a
discount on syrup.

Charles Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.

Other Pepsi Co Brands:

Other than Pepsi –Cola brands the company owns the brands Quaker Oats, Frito-Lay,
Tropicana, Mountain Dew, Mirinda and 7up
 PEPSI CO. PRODUCTS:

Pepsi Cola brands

Tropicana

Frito-Lay
Gatorade Brands

Quaker
 RISE OF PEPSI

During the Great Depression, Pepsi gained popularity following the introduction
in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but
when the price was slashed to five cents, sales increased substantially.

Coming at a time of economic crisis, the campaign succeeded in boosting

Pepsi's status. In 1936 alone 500,000,000 bottles of Pepsi were consumed.

From 1936 to 1938, Pepsi-Cola's profits were doubled.

Due to the merger and acquisition of the other food products the company’s
annual revenue has risen to 72%, while net profit doubled to $ 5.6 Billion in
2006
 Prominent Personalities
Mrs. Indra Krishnamurthy Nooyi joined PepsiCo in 1994 as senior vice president of
strategic planning.
Mrs. Nooyi was named President and CEO of Pepsi Co, on October 1, 2006 and
assumed the role of Chairman on May 2, 2007.Prior to joining Pepsi Co, Mrs. Indra
Nooyi was in Motorola & ABB.

According to the polls Forbes magazine conducted, Indra Nooyi

ranks third on the 2008 list of
“The World's 100 Most Powerful Women”.

Indra Nooyi was listed amongTime’s 100 Most Influential People

in the World in 2007 & 2008

In 2008, Nooyi was named one of America's Best Leaders by

U.S. News & World Report.

In 2007, she was awarded Padma Bhushan by Government of India

 Prominent Personalities
Mrs. Nooyi is the chief architect of PepsiCo’s multi-year growth
strategy by the acquisition of Tropicana and the merger with
Quaker Oats that brought the vital Quaker and Gatorade businesses to PepsiCo.

Total Compensation per year 12,739,095 ( 12thBest Highest-Paid

Women In Corporate America)

Michael D. White is the President of Pepsi International Division

He has global responsibility for the company's procurement

and information technology initiatives
 MARKETING:
Success in this competitive environment is dependent on effective promotion of
existing products and the introduction of new products. And so Pepsi Co. does a lot
of advertising its brands with celebrities.

Rivalry with Coca-Cola:

Pepsi Co. surpassed Coca-Cola company in market value for the first time in 112
years since both companies began to compete.
Blind taste test:
As a part of marketing, in 1975, Pepsi introduced the Pepsi Challenge marketing
campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-
Cola.
During these blind taste tests the majority of participants picked Pepsi as the better
tasting of the two soft drinks.

PepsiCo took great advantage of the campaign with television commercials

reporting the test results to the public.
During great depression in 1931, Pepsi sold cola at 5 Cents a 12-Ounce bottle each
compared to Coca Cola’s 10 Cents.
 BANS IN INDIA
In 2003 and again in 2006, the Centre for Science and Environment (CSE),
a non-governmental organization in New Delhi, claimed that soda drinks
produced by manufacturers in India, including both Pepsi and Coca-Cola,
had dangerously high levels of pesticides in their drinks that can
contribute to cancer, a breakdown of the immune system and cause birth
defects.

A ban was imposed on Pepsi as well Coca Cola in five Indian states, which
was lifted a month after.

PepsiCo and The Coca-Cola Company maintain that their drinks are safe
for consumption and have published newspaper advertisements that say
pesticide levels in their products are less than those in other foods such as
tea, fruit and dairy products

CSE's findings and a government-appointed committee, is now trying to

develop the world's first pesticides standards for soft drinks.
 Results of the tests:

Total pesticide residues in all brands of PepsiCo products were 12.68 ppb, which is
25.4 times the BIS(Bureau of Indian Standards) limit for total pesticides in soft
drinks
 Financial Highlights:

Share History:
Last Trade: 51.53
Trade Time: Mar 24
Change: 0.10 (0.19%)
Prev Close: 51.63
1y Target Est: 61.20
Day's Range: 51.12 - 51.96
52wk Range: 43.78 - 75.25
 Financial Highlights:
CONSOLIDATED STATEMENT: 2008 2007 2006
Net Revenue
$ 43,251 39,474 35,137
Cost of sales $ 20,351 18,038 15,762
Selling, general and administrative expenses
- $ 15,901 14,208 12,711
Amortization of intangible assets
- $ 64 58 162
Operating Profit $ 6,935 7,170 6,502
Bottling equity income
+ $ 374 560 553
Interest expense
- $ 329 (224 (239)
Interest income
+ $ 41 125 173

Income before Income Taxes $ 7,021 7,631 6,989

Provision for Income Taxes
- $ 1,879 1,973 1,347
NET INCOME $ 5,142 5,658 5,642
Net Income per Common Share
Basic $3.26 3.48 3.42
REFERENCES:

http://finance.yahoo.com

http://en.wikipedia.org/wiki/PepsiCo

http://forbes.com
THANK YOU