GEOGRAPHIC COVERAGE:

1. Frito-Lay, Inc. is an American subsidiary of PepsiCo that manufactures, markets, and sells corn
chips, potato chips, and other snack foods.

1. EUROPE

Frito-Lay snacks are distributed in Europe under the PepsiCo Europe operating division, previously
PepsiCo International. Products include: Walkers Crisps, Doritos, Paw Ridge, Smiths, Cheetos, Duyvis,
Snack-a-Jacks, Twistos, and Solinki. PepsiCo maintains manufacturing plants in Europe, the largest of
which are two snack manufacturing and processing plants located in Leicester and Coventry in
England.

2. ASIA, MIDDLE EAST & AFRICA

Frito-Lay products sold under the PepsiCo Asia, Middle East & Africa division represent the smallest
(as of 2010) proportion on a revenue basis. Many snack food products have been created to match
local taste and cultural preferences. In India, one of these is Kurkure Twistee, a potato-based snack
food produced in flavors popular in the country such as "Masala Munch”. Frito-Lay has also
employed alternate distribution means in these regions. In South Africa, it hired delivery drivers who
had grown up in their delivery areas, with the intent of "making the product seem less foreign".

3. NORTH AMERICA

Frito-Lay North America is the division which controls Frito-Lay product research and development,
sales, and distribution within the U.S. and Canada. Its primary brands include Lay's and Ruffles
potato chips, Doritos tortilla chips, Tostitos tortilla chips and dips, Cheetos cheese flavored snacks,
Fritos corn chips, Rold Gold pretzels, Sun Chips, and Cracker Jack popcorn.

4. CENTRAL AND SOUTH AMERICA

PepsiCo's Latin Americas Foods sells Frito-Lay branded snack foods in Central and South America.
[36] Its portfolio of brands includes Lay's, Cheetos, Fritos, and Doritos, as well as local brands such as
Lucky, Stiksy, and Baconzitos snacks in Brazil and ManiMoto in Colombia.

2. Tropicana Products, Inc. is an American multinational company which primarily makes fruit-
based beverages. It was founded in 1947 by Anthony T. Rossi in Bradenton, Florida. Since 1998,
it has been owned by PepsiCo.

The company was also distributing Tropicana in Canada, the United Kingdom, Ireland, France,
Germany, Argentina, Panama and Sweden.

As the 1990s continued, Tropicana further expanded internationally, entering several more Latin
American countries, Hong Kong and China.

Tropicana, which was launched in India in 2004 as 100% juice and then extended to other juice-
based drinks as well.

3. Gatorade is currently manufactured by PepsiCo and is distributed in over 80 countries.

Originally produced and marketed by Stokely-Van Camp, the Gatorade brand was purchased by
the Quaker Oats Company in 1983, which, in turn, was bought by PepsiCo in 2000.
Gatorade is currently available in 80 countries, with more than 30 flavors available in the U.S. and
more than 50 flavors available internationally. Gatorade expanded to Canada in 1984, Asia in 1987
and Europe and South America in 1988.

DISTRIBUTION CHANNELS:

PepsiCo Inc. is a leading food and beverage company with an impressive global presence. The
company’s products reach the market through the following three channels:

1. Direct store delivery (or DSD):

Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three
channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more suitable
for products that are restocked often and are sensitive to promotions and marketing.
2. Customer warehouse:
The customer warehouse system is a less expensive distribution channel. It’s ideal for
products that are less fragile and perishable, have lower turnover, and are not purchased
impulsively.
3. Third-party distributor networks:
PepsiCo distributes food and beverage products to restaurants, businesses, schools, and
stadiums through third-party food service and vending distributors and operators.