Pepsi Co

COMPANY OVERVIEW PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25 billion and over 143,000 employees. The company consists of (1) the snack businesses of Frito-Lay North America and Frito-Lay International, (2) the beverage businesses of Pepsi-Cola North America and PepsiCo Beverages International, (3) Gatorade/Tropicana North America juice products, and (4) Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo’s brand names are over 100-yearsold, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo (symbol: PEP) is a publicly traded company. Its shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded in 1965. It currently pays $0.60 per share in dividends to its stockholders. The stock currently trades at $41.84 as of Monday, April 21, 2003. PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. Edward Durrell Stone designed the seven-building headquarters complex. The building occupies ten acres of a 144-acre complex that

includes the Donald M. Kendall Sculpture Gardens, “a world acclaimed sculpture collection in a garden setting” designed by Russell Page (Enrico 2). PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of its people. The corporation’s mission statement is as follows: “Our mission is to be the world’s premier consumer products company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” Frito-Lay North America and Frito-Lay International PepsiCo’s snack food operations had their start in 1932, in San Antonio, Texas. It was there that Elmer Doolin bought the recipe for the Fritos brand corn chip, and started his firm, the Frito Company. In that same year in Nashville, Tennessee, Herman W. Lay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and the H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Today, Frito-Lay brands account for more than half of the United States snack chip industry. It produces eight of the ten biggest-selling salty snacks in the United States PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company. It accounts for more than one quarter of international retail snack chip sales. Products are available

in over 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the United Kingdom and Spain. Major Frito-Lay products include Ruffles, Lay’s and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. Frito-Lay North America (FLNA) produced very solid results, building on its position as the industry leader in salty snacks while pursuing new opportunities in the broader market of foods for people on the go. Volume grew 4% in 2002, revenue increased 4% from $8.216 billion in 2001 to $8.565 in 2002, and operating profit rose by 8% from $2.056 billion in 2001 to $2.216 billion in 2002. Frito-Lay International (FLI) posted solid growth despite the challenge of difficult conditions in several important markets. Volume grew 6% in 2002, revenue increased 4% from $5.492 billion in 2001 to $5.713 billion in 2002, and operating profit rose 20% from $651 million in 2001 to $781 million in 2002. Frito-Lay holds a 59% market share in the United States Snack Chip Industry. Pepsi-Cola North America and PepsiCo Beverages International Caleb Bradham, a New Bern, North Carolina druggist founded PepsiCo’s beverage business at the turn of the century. He first formulated Pepsi-Cola in 1898. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products, including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist

and Mug brands, account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. The company provides fountain beverage products to certain restaurant chains, such as Pizza Hut, and fast-food restaurants, such as Taco Bell. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the largest selling ready-to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. In 2001 Sobe became a part of Pepsi-Cola. Sobe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. In addition to brands marketed in the United States, its major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola also provides advertising, marketing, sales and promotional support to PepsiCola bottlers, such as the Pepsi Bottling Corporation, and food service customers. Pepsi-Cola North America (PCNA) posted solid gains in the marketplace and generated

healthy financial results as it displayed strength across the spectrum of beverage categories. Volume grew 2% in 2002, revenue was up 6% from $3.189 billion in 2001 to $3.365 billion in 2002, and operating profit increased 12% from $881 million in 2001 to $987 million in 2002. PepsiCo Beverages International (PBI) produced very solid results by continuing to pursue a highly focused growth strategy. Volume grew 5% in 2002, revenue increased 1% from $2.012 billion in 2001 to $2.036 billion in 2002, and operating profit jumped 23% from $212 million in 2001 to $261 million in 2002. PepsiCo Beverages International produced these results despite political and macroeconomic challenges in many markets, including a boycott of American brands in the Middle East and particularly weak local macroeconomic conditions in Latin America. Pepsi-Cola has a 35% market share in the United States Carbonated Soft Drink Industry, second only to Coca-Cola. Gatorade/Tropicana North America Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In 1954 Rossi pioneered a pasteurization process for orange juice. The juice was Tropicana Pure Premium, and it became the company’s flagship product. In 1957 it became a leading producing of ready-to-serve premium orange juice, and the name of the company was changed to Tropicana Products. The company went public in 1957, and was purchased by Beatrice Foods Co. in 1978. It was acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998.

Tropicana’s principal brands in North America are Tropicana Pure Premium, Tropicana Season’s Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui’Vita, Lo`oza and Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks were acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. It was created in 1965 by researchers at the University of Florida for the school’s football team, “The Gators.” Gatorade is now the world’s leading sport’s drink. Gatorade/Tropicana North America (GTNA) generated healthy volume growth overall for 2002, and more modest gains in revenue and profit. Volume was up 8%, revenue grew 4% from $3.699 billion in 2001 to $3.835 billion in 2002, and operating profit increased 1% from $585 million in 2001 to $590 million in 2002. Quaker Foods North America The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figures of a man in Quaker clothes became the first registered trademark for breakfast cereal. It remains the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as

"The Oatmeal King," had founded German Mills American Oatmeal Company in 1856. Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for-you food, as envisioned by the company over a century ago. Quaker Foods North America (QFNA) posted solid volume gains and strong profits with its portfolio of strong, well-established brands, such as Quaker Oatmeal and Life cereal. Volume increased 2% in 2002, revenue grew 2% from $1.466 billion in 2001 to $1.491 billion in 2002, and operating profit surged 21% from $399 million in 2001 to $481 million in 2002. A breakdown of each division’s contributions to PepsiCo’s net sales in 2002 is provided

History Headquartered in Purchase, New York, with Research and Development Headquarters inValhalla, The Pepsi Cola Company began in 1898 by a Pharmacist and Industrialist Caleb Bradham, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998, and Quaker Oats in 2001. In December 2005, PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete COMPANY OVERVIEW

PepsiCo, Inc. (PepsiCo) is a non alcoholic beverages and convenient snack products manufacturing company. It manufactures, markets and sells salty, sweet and grain based

snacks, foods and carbonated and non-carbonated beverages. It distributes its branded products through multi channels such as direct stores, broker warehouses, food service centers and vending machines. The company operates under three business units namely, PepsiCo Americas Foods, PepsiCo Americas Beverages and PepsiCo International. The company markets its products under various brands which include Ruffles, Aquafina, Aunt Jemima, Cheetos, Cracker Jack, Diet Pepsi, Fritos, Gamesa, Gatorade, Lay’s, Life, Matutano, Mirinda, Mountain Dew, Mug, Naked, Near East, Pasta Roni, Pepsi, Propel, Quaker, Quakes, Rold Gold, 7UP, Sierra Mist, Simba, Smith’s, Snack a Jacks and Tropicana. The company is headquartered in New York, the US. The company reported revenues of (U.S. Dollars) USD 43,251.00 million during the fiscal year ended 2008, an increase of 9.57% over 2007. The operating profit of the company was USD 6,935.00 million during the fiscal year 2008, a decrease of 3.28% from 2007. The net profit of the company was USD 5,142.00 million during the fiscal year 2008, a decrease of 9.12% from 2007

"PepsiCo subsidiaries" •

Bluebird Foods Ltd is a division of the U.S. based PepsiCo corporation, that manufactures of snack foods, cereals and muesli bars inNew Zealand

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Duyvis is a Dutch brand of salty snacks, of amongst others peanuts and nuts. Under the Duyvis brand also dip sauses are sold.

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For the chips synonymous with the company, see Fritos and Lay's.

Frito-Lay North America (FLNA) is a division of PepsiCo, Inc. which manufactures, markets and sells a variety of corn chips, potato chips and other snack foods •

Gamesa (formerly Galletera Mexicana S.A. de C.V.) is Mexico's largest manufacturer ofcookies . The company also makes candies, snacks, pasta and other related products. It is headquartered in San Pedro Garza García, Nuevo León, and have production facilities in eight states across the country. In 1990, they were acquired by PepsiCo, also owner of Pepsi and Sabritas in Mexico

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Lay's is the brand name for a number of potato chip (crisps in British English) varieties as well as the name of the company that founded the chip brand in 1938. Lay's chips are marketed as a division of Frito-Lay, a company owned by PepsiCo Inc. since 1965. Other brands in the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos and Rold Goldpretzels.

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Naked Juice is a brand of fruit drinks advertised as being produced without any added sugar orpreservatives, and with high concentrations of antioxidants[1]. All sugars included in the drink are found naturally in the fruit and the bottle states that Naked Juice is not a low calorie food. Under

the slogan "A Pound of Fruit in Every Bottle" ("Two Pounds" for the 32ounce bottle), Naked Juice is made by the Naked Juice Company of Azusa, California, and was acquired by PepsiCo Products •

The Quaker Mill Company was a 19th century American oat mill company in Ravenna, Ohio. After merging with two other companies in 1901, the company became the Quaker Oats Company, now a subsidiary of PepsiCo.

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The Quaker Oats Company is an American food conglomerate based in Chicago

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Sabritas is a Mexican snacks company,founded-1943 headquaters- Mexico city, Mexico

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Sabritas is a Mexican snacks company founded-1943 headquaters- Mexico city, Mexico

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Sandora LLC (Ukrainian: Сандора) is a Ukrainian juice company based in Mykolaiv, Ukraine. Founded in 1995, the company currently holds a 47 percent share of the Ukrainian beverage market.[1] In September 2007, American-based PepsiCo, Inc. purchased 80 percent ownership of Sandora's company holdings. In November 2007, PepsiAmericas, Inc. and PepsiCo, Inc. jointly acquired the remaining 20% of Sandora. PepsiAmericas holds a 60% interest in Sandora, and PepsiCo holds 40% interest in Sandora.

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The Smith's Snackfood Company is a company best known for producing and selling a range of snack food such as crisps/chips. It is now owned by New York based company PepsiCo.

Organization chart

Profile

Pepsico, Inc. 700 Anderson Hill Road Purchase, NY 10577 United States - Map Phone: 914-253-2000 Fax: 914-253-2070 Web Site: http://www.pepsico.com DETAILS

Index Membership: S&P 100 S&P 500 S&P 1500 Super Comp Sector: Consumer Goods Industry: Processed & Packaged Goods Full Time Employees: 198,000

KEY EXECUTIVES

Pay Exercised Ms. Indra K. Nooyi , 53 Chairman, Chief Exec. Officer and Pres

$ 3.90M $ 3.90M Mr. Michael D. White , 57 Vice Chairman, Chief Exec. Officer of PepsiCo International of PepsiCo International

$ 3.29M $ 6.07M Mr. Richard Goodman , 60 Chief Financial Officer

$ 1.47M $0 Mr. John C. Compton , 46 Chief Exec. Officer of PepsiCo Americas Foods and Member of Liquid Refreshment Beverage Oversight Council

$ 2.13M $ 4.39M Mr. Albert P. Carey , 57 Chief Exec. Officer of Frito-Lay - North America and Pres of Frito-Lay North America division

$ 2.14M $0

PepsiCo is home to hundreds of brands around the globe. Listed here are some of our most recognized.

Pepsi • • • • • • • • • • •

Pepsi Caffeine Free Pepsi Diet Pepsi Caffeine Free Diet Pepsi Diet Pepsi Max Jazz Diet Pepsi Diet Pepsi Lime Diet Pepsi Vanilla Pepsi Wild Cherry Diet Pepsi Wild Cherry Pepsi ONE

Sierra Mist • • • •

Sierra Mist Diet Sierra Mist Sierra Mist Cranberry Splash Sierra Mist Free Cranberry Splash

Tropicana •

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Tropicana lemonade and punches Tropicana Light lemonade and punches Tropicana Twister sodas

Ocean Spray

Mountain Dew

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AMP Energy AMP Energy Free AMP Energy Overdrive AMP Energy Relaunch AMP Energy AMP Energy AMP Energy

SoBe • •

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Sugar

More • • • •

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Ethos Water (License) Manzanita Sol Slice FruitWorks juice drinks Mirinda

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SoBe juice drinks, dairy, and teas SoBe Lean diet juice drinks, dairy, and teas SoBe Life Water SoBe Adrenaline Rush

Aquafina Aquafina FlavorSplash Aquafina Sparkling

(Partnership)

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No Fear No Fear Motherload Sugar Free No Fear Motherload

Traction Dole (License) Elevate Shot • Dole juices and juice drinks • Dole Plus fortified juices

Starbucks

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No Fear • • •

Aquafina Ocean Spray juices Ocean Spray juice drinks

Doubleshot Starbucks Doubleshot Energy Starbucks Iced Coffee

Mountain Dew Diet Mountain Dew Lipton (Partnership) Caffeine Free Mountain Dew • Mountain Dew Code • Lipton Brisk Red • Lipton Iced Te • Diet Mountain Dew • Lipton Pure Leaf Code Red • Mountain Dew Mug Root Beer LiveWire • Mountain Dew • Mug Root Beer Voltage • Diet Mug Root Beer • Mug Cream Soda AMP Energy • Diet Mug Cream Soda • • •

(License) • •

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Frappuccino readyto-drink coffee Starbucks Doubleshot

Outside North America • • • • • • • • • • • • • • • •

Mirinda 7UP (International) Pepsi Limón Kas Teem Pepsi Max Pepsi Light Manzanita Sol Paso de los Toros Fruko Evervess Yedigun Shani Fiesta D&G (License) Mandarin (License)

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Radical Fruit

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Starbucks Doubleshot Energy Starbucks Iced Coffee

Lipton (Partnership) • •

Lipton Brisk Lipton Iced Tea

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Lipton Pure Leaf

Frito-Lay Brands [-]` • •

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Lay's potato chips Lay's Kettle Cooked potato chips Wavy Lay's potato chips Baked Lay's potato crisps Maui Style potato chips Ruffles potato chips Baked Ruffles potato crisps Ruffles Flavor Rush potato chips Doritos tortilla chips Baked Doritos tortilla chips 3D's snacks Tostitos tortilla chips Baked Tostitos tortilla chips Santitas tortilla chips Fritos corn chips Cheetos cheese flavored snacks Rold Gold pretzels & snack mix Funyuns onion flavored rings Go Snacks Sunchips multigrain snacks Sabritones puffed wheat snacks Cracker Jack candy coated popcorn Chester's

popcorn

Outside North America

• • • • • • • • • •

Grandma's cookies Munchos potato crisps Smartfood popcorn Baken-ets fried pork skins Oberto meat snacks Rustler's meat snacks Churrumais fried corn strips Frito-Lay nuts Frito-Lay, Ruffles, Fritos and Tostitos dips & salsas Frito-Lay, Doritos and Cheetos snack crackers Fritos, Tostitos, Ruffles and Doritos snack kits Hickory Sticks Hostess Potato Lay's Stax potato crisps Doritos Rollitos Lay's Fries Natural Lays Natural Ruffles Natural Cheetos Natural Tostitos Miss Vickie's potato chips

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Bocabits wheat snacks Crujitos corn snacks Fandangos corn snacks Hamka's snacks Niknaks cheese snacks Quavers potato snacks Sabritas potato chips Smiths potato chips Walkers potato crisps Walkers Square potato snacks Walkers French Fries potato sticks Walkers Monster Munch corn snacks Gamesa cookies Doritos Dippas Sonric's sweet snacks Wotsits corn snacks Walkers Sensations Doritos A La Turca Lay's Mediteranneas Red Rock Deli Kurkure Smiths Sensations Lays Artesanas PC Cheetos Shots

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Munchies snack mix

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Quavers Snacks

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Gatorade Brands • • • • • •

Gatorade Gatorade Gatorade Gatorade Gatorade Gatorade

Thirst Quencher Frost Thirst Quencher Ice Thirst Quencher Xtremo Thirst Quencher X-Factor Thirst Quencher Fierce Thirst Quencher

Propel Fitness Water • • • • •

Tiger Red Drive Tiger Cool Fusion Tiger Quite Storm G2 Fruit Punch G2 Orange

G2 Grape

Tropicana Brands [-] • • • • •

Tropicana Pure Premium juices Tropicana Twister juice drinks Tropicana Smoothies Tropicana Pure Tropics juices Dole juices (License) Tropicana 100 juices

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Naked Juice

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Outside North America • • • • •

Tropicana Touche de Lait Alvalle gazpacho fruit juices and vegetable juices Tropicana Season's Best juices and juice drinks Loóza juices and nectars Copella juices

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Frui'Vita juices

Quaker Brands [-] • • • • • • • • • • • •

Quaker Oatmeal Quaker Instant Oatmeal Quaker Oatmeal Breakfast Squares Cap'n Crunch cereal Life cereal Quaker Oatmeal Brown Sugar Bliss Quaker Oatmeal Honey Nut Heaven Quaker 100% Natural cereal Quaker Squares cereal Quisp cereal King Vitaman cereal Quaker Oh's! Cereal

• • • • • • • • • • • • •

Quaker rice snacks (Quakes) Quaker Chewy granola bars Quaker Dipps granola bars Rice-A-Roni side dishes Pasta Roni side dishes Near East side dishes Puffed Wheat Harvest Crunch cereal Quaker Baking Mixes Spudz snacks Crisp'ums baked crisps Quaker Fruit & Oatmeal bars Quaker Fruit & Oatmeal Bites

Outside North America • • • • • • • • • • • • • • •

FrescAvena beverage powder Toddy chocolate powder Toddynho chocolate drink Coqueiro canned fish Sugar Puffs cereal Puffed Wheat Cruesli cereal Hot Oat Crunch cereal Quaker Oatso Simple hot cereal Scott's Porage Oats Scott's So Easy Oats Quaker Bagged cereals Quaker Mais Sabor Quaker Oats Quaker oat flour

Mother's cereal Quaker grits Quaker Oatmeal-toGo Aunt Jemima mixes & syrups

• • • •

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Quaker Fruit and Oatmeal • Toastables • Quaker Soy Crisps • Quaker Bakeries

Quaker rice cakes

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• • • • • • • •

Quaker Meu Mingau Quaker cereal bars Quaker Oatbran Corn goods Magico chocolate powder Quaker Vitaly Cookies 3 Minutos Mixed Cereal Quaker Magica Quaker Magica con Soja Quaker Pastas Quaker Frut

Former brands PepsiCo owned a number of restaurant chains until it exited that business in 1997, selling some, and spinning off others into a new company Tricon Global Restaurants, now known as Yum! Brands, Inc.. PepsiCo also previously owned several other brands that it later sold. 

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California Pizza Kitchen (bought 1992, sold back to original founders in 1997) Chevys Fresh Mex (bought August 1993, sold May 1997 to J. W. Childs Equity Partners) D'Angelo Sandwich Shops (sold August 1997 to Papa Gino's) East Side Mario's (United States franchises – bought December 1993, sold early 1997 ) Hot 'n Now (bought in 1990, sold in 1997) KFC (bought October 1986 from RJR Nabisco, spun off October 1997 to form TriCon, later Yum! Brands) North American Van Lines Pizza Hut (bought in 1977, spun off October 1997 to form TriCon, later Yum! Brands) Stolichnaya Taco Bell (bought in 1978, spun off October 1997 to form TriCon, later Yum! Brands)

Wilson Sporting Goods

Discontinued lines 

All Sport, a line of sports drinks. All-Sport was lightly carbonated; in contrast, rivals Gatorade and Coke-owned POWERade were non-

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carbonated. The 2001 purchase of Quaker Oats (in effect acquiring Gatorade) made All Sport expendable, and the brand was sold to another company. Aspen Soda, an apple-flavored soft drink (late 1970s-early 80's) Crystal Pepsi, a clear version of Pepsi-Cola. FruitWorks: Flavors were Strawberry Melon, Peach Papaya, Tangerine Citrus, Apple Raspberry, and Pink Lemonade. Two other flavors, Passion Orange and Guava Berry, were available in Hawaii only. Josta: launched 1995, "with Guarana," the first energy drink launched by a major soft drink company in the US. Matika: Run in August 2001, it was a tea/juice alternative beverage, sweetened with cane sugar & containing Ginseng. Dragonfruit Potion, Magic Mombin, Mythical Mango, Rising Starfruit, Skyhigh Berry Mazagran: launched 1995 Mr. Green (SoBe) Patio: line of flavored drinks (1960-late '70s) Pepsi Edge, a mid-calorie version of Pepsi-Cola. Pepsi Blue, a berry-flavored, blue version of Pepsi-Cola. Pepsi Kona: launched 1997, a coffee-flavored version of Pepsi-Cola. Smooth Moos: launched 1995, a flavored milk-based drink. Storm: launched March 15, 1998, replaced by Sierra Mist.

Discontinued lines 

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All Sport, a line of sports drinks. All-Sport was lightly carbonated; in contrast, rivals Gatorade and Coke-owned POWERade were noncarbonated. The 2001 purchase of Quaker Oats (in effect acquiring Gatorade) made All Sport expendable, and the brand was sold to another company. Aspen Soda, an apple-flavored soft drink (late 1970s-early 80's) Crystal Pepsi, a clear version of Pepsi-Cola. FruitWorks: Flavors were Strawberry Melon, Peach Papaya, Tangerine Citrus, Apple Raspberry, and Pink Lemonade. Two other flavors, Passion Orange and Guava Berry, were available in Hawaii only. Josta: launched 1995, "with Guarana," the first energy drink launched by a major soft drink company in the US. Matika: Run in August 2001, it was a tea/juice alternative beverage, sweetened with cane sugar & containing Ginseng. Dragonfruit Potion, Magic Mombin, Mythical Mango, Rising Starfruit, Skyhigh Berry Mazagran: launched 1995 Mr. Green (SoBe)

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Patio: line of flavored drinks (1960-late '70s) Pepsi Edge, a mid-calorie version of Pepsi-Cola. Pepsi Blue, a berry-flavored, blue version of Pepsi-Cola. Pepsi Kona: launched 1997, a coffee-flavored version of Pepsi-Cola. Smooth Moos: launched 1995, a flavored milk-based drink. Storm: launched March 15, 1998, replaced by Sierra Mist.

Swot Analysis Of Pepsi Co. Strength • Pepsi has a broader product line and outstanding reputation. • Merger of Quaker Oats produced synergy across the board. • Record revenues and increasing market share. • Lack of capital constraints (availability of large free cash flow). o Great brands, strong distribution, innovative capabilities o Number one maker of snacks, such as corn chips and potato chips • PepsiCo sells three products through the same distribution channel. For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.

Weakness • Pepsi hard to inspire vision and direction for large global company. • Not all PepsiCo products bear the company name • PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.

Opportunity • Food division should expand internationally • Noncarbonated drinks are the fastest-growing part of the industry • There are increasing trend toward healthy foods • Focus on most important customer trend - "Convenience".

Threats • F&B industry is mature • Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g in India • Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn

• PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors. • Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.

Strategies The purpose of the strategy is to increase the EPS by 15% per annum and increase PepsiCo's...

Balance Sheets All numbers in thousands

Quarterly Data PERIOD ENDING

21-Mar-09

27-Dec-08

6-Sep-08

14-Jun-08

Assets Current Assets Cash And Cash Equivalents

2,188,000

2,064,000

1,517,000

1,768,000

199,000

213,000

342,000

305,000

Net Receivables

4,601,000

4,683,000

5,752,000

5,617,000

Inventory

2,580,000

2,522,000

2,804,000

2,935,000

Other Current Assets

1,291,000

1,324,000

939,000

1,026,000

Total Current Assets

10,859,000

10,806,000

11,354,000

11,651,000

3,782,000

3,998,000

4,611,000

4,519,000

11,306,000

11,663,000

11,992,000

11,600,000

Goodwill

4,988,000

5,124,000

5,370,000

5,511,000

Intangible Assets

1,792,000

1,860,000

2,116,000

2,222,000

-

-

-

-

2,293,000

2,324,000

3,015,000

1,276,000

-

219,000

-

-

35,020,000

35,994,000

38,458,000

36,779,000

7,736,000

6,494,000

8,518,000

8,339,000

255,000

369,000

1,203,000

-

Other Current Liabilities

-

1,924,000

-

-

Total Current Liabilities

7,991,000

8,787,000

9,721,000

8,339,000

Long Term Debt

9,241,000

7,858,000

6,537,000

6,053,000

Short Term Investments

Long Term Investments Property Plant and Equipment

Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt

Other Liabilities

5,475,000

7,017,000

5,432,000

4,982,000

234,000

226,000

716,000

752,000

Minority Interest

-

-

-

-

Negative Goodwill

-

-

-

-

22,941,000

23,888,000

22,311,000

20,032,000

Misc Stocks Options Warrants

-

-

Redeemable Preferred Stock

-

Deferred Long Term Liability Charges

Total Liabilities Stockholders' Equity

(97,000)

(95,000)

(94,000)

-

-

Preferred Stock

41,000

-

-

-

Common Stock

30,000

30,000

30,000

30,000

Retained Earnings

31,109,000

30,638,000

30,581,000

29,669,000

Treasury Stock

(14,031,000)

(14,122,000)

(13,861,000)

(12,824,000)

Capital Surplus Other Stockholder Equity

233,000

351,000

342,000

345,000

(5,303,000)

(4,694,000)

(945,000)

(473,000)

Total Stockholder Equity

12,079,000

12,203,000

16,147,000

16,747,000

Net Tangible Assets

$5,299,000

$5,219,000

$8,661,000

$9,014,000

Income Statement Quarterly Data PERIOD ENDING

All numbers in thousands

21-Mar-09

27-Dec-08

6-Sep-08

14-Jun-08

Total Revenue

8,263,000

12,729,000

11,244,000

10,945,000

Cost of Revenue

3,744,000

6,171,000

5,268,000

5,078,000

Gross Profit

4,519,000

6,558,000

5,976,000

5,867,000

-

-

-

-

2,921,000

5,324,000

3,979,000

3,664,000

-

-

-

-

10,000

21,000

13,000

18,000

-

-

-

-

1,588,000

1,213,000

1,984,000

2,185,000

215,000

206,000

Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses

Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes

25,000

(451,000)

1,613,000

1,136,000

2,199,000

2,391,000

98,000

124,000

73,000

74,000

1,515,000

1,012,000

2,126,000

2,317,000

374,000

293,000

550,000

618,000

-

-

-

-

1,141,000

719,000

1,576,000

1,699,000

Discontinued Operations

-

-

-

-

Extraordinary Items

-

-

-

-

Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events

Effect Of Accounting Changes

-

-

-

-

Other Items

-

-

-

-

Net Income

1,141,000

719,000

1,576,000

1,699,000

-

-

-

$719,000

$1,576,000

Preferred Stock And Other Adjustments Net Income Applicable To Common Shares

(6,000)

$1,135,000

$1,699,000

Cash Flow Quarterly Data PERIOD ENDING

Net Income

All numbers in thousands

21-Mar-09 1,141,000

27-Dec-08

6-Sep-08

14-Jun-08

719,000

1,576,000

1,699,000

314,000

488,000

377,000

375,000

(1,006,000)

930,000

(23,000)

43,000

Changes In Accounts Receivables

(114,000)

617,000

(64,000)

(749,000)

Changes In Liabilities

(190,000)

(216,000)

202,000

727,000

Changes In Inventories

(139,000)

17,000

240,000

(427,000)

Changes In Other Operating Activities

(272,000)

(214,000)

157,000

5,000

Total Cash Flow From Operating Activities

(266,000)

2,465,000

1,673,000

Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income

2,341,000

Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments Other Cashflows from Investing Activities Total Cash Flows From Investing Activities

(298,000)

(1,047,000)

(503,000)

(587,000)

7,000

82,000

(55,000)

697,000

(19,000)

74,000

(1,580,000)

16,000

(310,000)

(891,000)

(2,138,000)

126,000

(669,000)

(662,000)

(670,000)

(599,000)

90,000

(400,000)

(1,138,000)

(1,330,000)

1,334,000

268,000

1,246,000

277,000

7,000

24,000

18,000

12,000

Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities

Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents

762,000 (62,000)

$124,000

(770,000)

(544,000)

(133,000)

(34,000)

$547,000

(1,640,000) 5,000

($251,000)

$164,000

Balance Sheets All numbers in thousands

PERIOD ENDING

12/2008

12/2007

12/2006

12/2005

Cash and Equivalents

2,064,000

910,000

1,651,000

1,716,000

Marketable Securities

213,000

1,571,000

1,171,000

3,166,000

Accounts Receivable

4,683,000

4,389,000

3,725,000

3,261,000

Receivables

4,683,000

4,389,000

3,725,000

3,261,000

Raw Materials

1,228,000

1,056,000

860,000

738,000

169,000

157,000

140,000

112,000

Finished Goods

1,125,000

1,077,000

926,000

843,000

Inventories

2,522,000

2,290,000

1,926,000

1,693,000

Prepaid Expenses

1,324,000

991,000

657,000

618,000

Total Current Assets

10,806,000

10,151,000

9,130,000

10,454,000

Land & Improvements

868,000

864,000

756,000

685,000

4,738,000

4,577,000

4,095,000

3,736,000

15,173,000

14,471,000

12,768,000

11,658,000

1,773,000

1,984,000

1,439,000

1,066,000

Total Fixed Assets

22,552,000

21,896,000

19,058,000

17,145,000

Gross Fixed Assets (Plant, Prop. & Equip.)

22,552,000

21,896,000

19,058,000

17,145,000

Accumulated Depreciation & Depletion

10,889,000

10,668,000

9,371,000

8,464,000

Net Fixed Assets (Net PP&E)

11,663,000

11,228,000

9,687,000

8,681,000

Intangibles

1,128,000

2,044,000

1,849,000

1,616,000

Cost in Excess

5,124,000

5,169,000

4,594,000

4,088,000

Other Non-Current Assets

7,273,000

6,036,000

4,670,000

6,888,000

Total Non-Current Assets

25,188,000

24,477,000

20,800,000

21,273,000

Total Assets

35,994,000

34,628,000

29,930,000

31,727,000

Balance Sheet - Assets

Work in Progress

Building & Improvements Machinery, Furniture & Equipment Construction in Progress

Balance Sheet - Liabilities, Stockholders Equity

Accounts Payable

8,273,000

2,562,000

2,102,000

5,971,000

369,000

*

274,000

2,889,000

*

2,894,000

2,587,000

*

145,000

2,297,000

1,897,000

546,000

Total Current Liabilities

8,787,000

7,753,000

6,860,000

9,406,000

Long Term Debt

7,858,000

4,203,000

2,550,000

2,313,000

226,000

646,000

528,000

1,434,000

6,879,000

4,792,000

4,624,000

4,323,000

*

(91,000)

(79,000)

(69,000)

Total Non-Current Liabilities

14,963,000

9,550,000

7,623,000

8,001,000

Total Liabilities

23,750,000

17,303,000

14,483,000

17,407,000

Preferred Stock Equity

41,000

*

*

*

Common Stock Equity

12,203,000

17,325,000

15,447,000

14,320,000

30,000

30,000

30,000

30,000

351,000

450,000

584,000

614,000

*

213,000

(506,000)

*

30,638,000

28,184,000

24,837,000

21,116,000

(14,122,000)

(10,387,000)

(7,758,000)

(6,387,000)

Other Equity Adjustments

(4,694,000)

(1,165,000)

(1,740,000)

(1,053,000)

Total Capitalization

20,102,000

21,528,000

17,997,000

16,633,000

Total Equity

12,244,000

17,325,000

15,447,000

14,320,000

Total Liabilities & Stock Equity

35,994,000

34,628,000

29,930,000

31,727,000

Cash Flow

6,685,000

7,072,000

7,037,000

5,384,000

Working Capital

2,019,000

2,398,000

2,270,000

1,048,000

Free Cash Flow

1,972,000

980,000

1,677,000

1,379,000

Invested Capital

20,102,000

21,528,000

17,997,000

16,633,000

Short Term Debt Accrued Liabilities Other Current Liabilities

Deferred Income Taxes Other Non-Current Liabilities Preferred Equity outside Stock Equity

Common Par Additional Paid In Capital Cumulative Translation Adjustment Retained Earnings Treasury Stock

: Annual Data | All numbers in thousands PERIOD ENDING

12/2008

12/2007

12/2006

12/2005

Operating Revenue (Revenue/Sales)

43,251,000

39,474,000

35,137,000

32,562,000

Total Revenues

43,251,000

39,474,000

35,137,000

32,562,000

Cost of Sales

18,872,000

16,670,000

14,518,000

13,018,000

Cost of Sales with Depreciation

20,351,000

18,038,000

15,762,000

14,176,000

Gross Operating Profit

24,379,000

22,804,000

20,619,000

19,544,000

Selling, Gen. & Administrative Expense

15,901,000

14,208,000

12,774,000

12,314,000

Operating Income

6,935,000

7,170,000

6,439,000

5,922,000

Operating Income b/f Depreciation (EBITDA)

8,478,000

8,596,000

7,845,000

7,230,000

Depreciation

1,543,000

1,426,000

1,406,000

1,308,000

64,000

58,000

162,000

150,000

6,935,000

7,170,000

6,439,000

5,922,000

41,000

125,000

173,000

159,000

374,000

560,000

616,000

557,000

7,350,000

7,855,000

7,228,000

6,638,000

329,000

224,000

239,000

256,000

Pre-tax Income (EBT)

7,021,000

7,631,000

6,989,000

6,382,000

Income Taxes

1,879,000

1,973,000

1,347,000

2,304,000

Income before Income Taxes

7,021,000

7,631,000

6,989,000

6,382,000

Net Income from Continuing Operations

5,142,000

5,658,000

5,642,000

4,078,000

Net Income from Total Operations

5,142,000

5,658,000

5,642,000

4,078,000

Total Net Income

5,142,000

5,658,000

5,642,000

4,078,000

Normalized Income

5,142,000

5,658,000

5,642,000

4,078,000

Net Income Available for Common

5,142,000

5,646,000

5,631,000

4,076,000

*

12,000

11,000

2,000

Income Statement

Amortization of Intangibles Operating Income After Depreciation Interest Income Earnings from Equity Interest

Total Income Avail for Interest Expense (EBIT) Interest Expense

Preferred Dividends

Income Statement - Year-to-Date Revenues Year-to-Date Income Year-to-Date fr. Total Ops.

43,251,000

39,474,000

35,137,000

32,562,000

5,142,000

5,658,000

5,642,000

4,078,000

: Annual Data PERIOD ENDING

All numbers in thousands

12/2008

12/2007

12/2006

12/2005

Net Income (Loss)

5,142,000

5,658,000

5,642,000

4,078,000

Depreciation

1,543,000

1,426,000

1,406,000

1,308,000

573,000

118,000

(510,000)

440,000

Operating (Gains) Losses

(142,000)

(323,000)

134,000

(390,000)

(Increase) Decrease in Receivables

(549,000)

(405,000)

(330,000)

(272,000)

(Increase) Decrease in Inventories

(345,000)

(204,000)

(186,000)

(132,000)

(Increase) Decrease in Prepaid Expenses

(68,000)

(16,000)

(37,000)

(56,000)

(Increase) Decrease in Payables

718,000

500,000

223,000

188,000

(Increase) Decrease in Other Curr Liabs.

(180,000)

128,000

(295,000)

609,000

(Increase) Decrease in Other Working Capital

(367,000)

*

*

*

674,000

52,000

37,000

79,000

Net Cash from Continuing Operations

6,999,000

6,934,000

6,084,000

5,852,000

Net Cash from Operating Activities

6,999,000

6,934,000

6,084,000

5,852,000

98,000

47,000

49,000

88,000

Sale of Long Term Investments

420,000

315,000

318,000

214,000

Sale of Short Term Investments

*

140,000

2,046,000

84,000

Cash Flow From Operating Activities

Deferred Income Taxes

Other Non-Cash Items

Sale of Property, Plant, Equipment

Purchase of Property, Plant, Equipment

(2,446,000)

(2,430,000)

(2,068,000)

(1,736,000)

(40,000)

(1,320,000)

(485,000)

(1,095,000)

Purchase of Long Term Investments

(1,925,000)

*

*

*

Purchase of Short Term Investments

(156,000)

(496,000)

(29,000)

(1,075,000)

Other Investing Changes Net

1,382,000

*

(25,000)

3,000

(2,667,000)

(3,744,000)

(194,000)

(3,517,000)

3,808,000

2,251,000

236,000

1,958,000

620,000

1,108,000

1,194,000

1,099,000

(918,000)

(1,057,000)

(2,683,000)

(262,000)

Repurchase of Capital Stock

(4,726,000)

(4,312,000)

(3,010,000)

(3,031,000)

Payment of Cash Dividends

(2,541,000)

(2,204,000)

(1,854,000)

(1,642,000)

732,000

208,000

134,000

*

(3,025,000)

(4,006,000)

(5,983,000)

(1,878,000)

Effect of Exchange Rate Changes

(153,000)

75,000

28,000

(21,000)

Net Change in Cash & Cash Equivalents

1,154,000

(741,000)

(65,000)

436,000

910,000

1,651,000

1,716,000

1,280,000

2,064,000

910,000

1,651,000

1,716,000

Foreign Sales

20,726,000

17,496,000

14,349,000

12,625,000

Domestic Sales

22,525,000

21,978,000

20,788,000

19,937,000

Acquisitions

Net Cash from Investing Activities Issuance of Debt Issuance of Capital Stock Repayment of Debt

Other Financing Charges, Net Net Cash from Financing Activities

Cash at Beginning of Period Cash at End of Period

Equity estimates PEPSICO INC (NYSE) PEP

56.35

Current Quarter Estimate Next Quarter Estimate Current Year Estimate Next Year Estimate Expected Earnings Growth Expected Sales Growth

0.00

(0.00%)

.99 1.05 3.69 4.05 11.53% 10.17%

Vol. 370 Next Report Date EPS last quarter Last Quarter EPS Surprise Last Year's Earnings PE (forward) ABR

0.00 CST

Jul 22, 2009 .99 0% 3.66 15.27 1.9

In-Depth Earnings Estimates Current Quarter Jun 09

Next Quarter Sep 09

Current Year Feb 09

Next Year Feb 10

$0.99

$1.05

$3.69

$4.05

11

11

13

10

High Estimate

$1.02

$1.08

$3.80

$4.33

Low Estimate

$0.93

$1.03

$3.60

$3.90

Year Ago EPS

$1.05

$1.06

$3.68

$3.69

Growth Rate

(6)%

(1.20)%

0.25%

9.67%

Average Estimate Number of Analysts

PEP (Common Stock)

Exchange NYSE (US Dollar)

Price $56.35

Change (%) 0.17 (0.30%)

Volume 8,164,779

Today's Open $56.03

Previous Close $56.52

Intraday High $56.82

Intraday Low $55.77

52 Week High $75.25

52 Week Low $45.39

Data as of 07/02/09 4:00 p.m. ET Minimum 20 minute delay Refresh quote

Our Progress [-]

Human Sustainability

Our Commitments

Our Progress in 2007/2008

Grow our portfolio of healthy products while continuing to improve the nutritional profile of our existing products and act as a responsible company to address nutrition challenges

Expanded our portfolio of healthful products Authored with industry the "Global Commitment to Action on the Global Strategy on Diet, Physical Activity and Health," a commitment addressed to the World Health Organization Instituted guidelines for beverages limiting advertising and marketing to children under 12

Environment al Sustainabilit y

Work to protect our natural resources and Improved water efficiency across all our operate in a way that minimizes our operations environmental footprint PepsiCo Foundation committed more than $16 Reduce water consumption by 20%, million to organizations working to bring safe electricity consumption by 20% and fuels water to developing countries consumption by 25% per unit of production by the year 2015 Incorporated consideration of environmental sustainability issues and opportunities as part Optimize our use of materials and of every capital expenditure evaluation for continuously improve the environmental projects greater than $5 million footprint of our packaging Signed United Nation’s CEO Water Mandate Saved nearly 5 billion liters of water and nearly 500 million kilowatt hours of energy

worldwide in 2007 as compared to 2006 Was the first major food brand in the world to display a carbon footprint/reduction logo on Walkers Crisps with the Carbon Trust Offset the total purchased electricity used by all PepsiCo US-based facilities by purchasing Renewable Energy Credits Launched our Global Sustainable Packaging Policy Talent Sustainabilit y

Ensure that our suppliers operate in a Introduced our Supplier Code of Conduct manner that respects PepsiCo’s commitments to human, environment and Launched our Global talent sustainability. Health and Safety Leadership Team Extend our human rights standards throughout our operations

Joined Supplier Ethical Data Exchange (SedEx) Increased spending on women and minority owned businesses Translated our Human Rights Workplace Policy into 30 languages

Data is prepared following PepsiCo-established metrics and protocols, which often follow external methods. For additional information contact the PepsiCo Sustainability Communications Department at (914) 253-3059

Awards and Recognitions [-]

As a member of the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability North America Index (DJSI North America), PepsiCo is a recognized leader in sustainability.

2007 Select Recognitions •

PepsiCo was named to the DJSI World and North America Indexes.

•

Business Ethics magazine named PepsiCo to the 100 Best Corporate Citizens list.

•

The U.S. Environmental Protection Agency (EPA) recognized PepsiCo as Green Power Partner of the Year and Energy Star Partner of the Year.

•

The Human Rights Campaign named PepsiCo as one of the Best Places to Work for Gay/Lesbian/ Bisexual/Transgender (GLBT) Equality.

•

Working Mother magazine named PepsiCo to its Best Green Companies for America’s Childrenlist.

•

The AIDS Responsibility Project (ARP) presented PepsiCo with the International Corporate Courage Award.

•

CRO magazine recognized PepsiCo among the 2007 100 Best Corporate Citizens in the United States.

•

Seven PepsiCo China bottling plants were recognized as Best Water-Saving Companies in China’s beverage industry by the China Beverage Industry Association.

•

China Rights Forum and China Business News Group named PepsiCo 2007 Outstanding Employer of China in the Shanghai Region.

•

Catalyst honored PepsiCo with the 2007 Catalyst Award for its Woman of Color Multicultural Alliance.

•

Black Enterprise magazine named PepsiCo as one of the 40 Best Companies for Diversity.

•

The Cause Marketing Forum awarded Sam’s Club/ Aquafina’s "Return the Warmth" program with the top environmental honor, the Halo Award.

What We Fund

The Foundation is committed to developing sustainable partnerships and programs in underserved regions that provide opportunities for improved health, environment and inclusion.

Portfolios PepsiCo Foundation works in partnership with public, private and civil organizations, with the goal of improving fundamental problems and concerns in our global community. We are committed to contributing to programs that will lead to sustainable outcomes and impacts for the global community. To achieve this, we invest resources by strategically partnering with non-profits and NGOs that have demonstrated expertise and ability to magnify positive outcomes through action. Organizations must demonstrate a defined and purposeful fit to PepsiCo Foundation's funding priorities and have a track record of success to be considered for funding. We carefully evaluate and support organizational capacity, recognizing that it is a critical element to building and sustaining successful outcomes and programs. Additionally, these programs must have the ability to be locally managed with diverse sustainable funds. The Foundation invests in programs that help areas of greatest need. Proposals for all major grants are solicited by Foundation staff. In order to be considered for funding, an organization's mission and program goals must align with, and deliver on, PepsiCo Foundation's grant making priorities. Additionally, we welcome and encourage interaction and collaboration among grantee organizations. We seek to weave our common goals and shared talents so that outcomes are effective, sustainable and have a broad impact across all communities. We look to leverage the collective talents within the network of the partner organizations. Health Portfolio [-]

Our investment strategy in Global Health is to protect and make available proper, nutritious food, improve complete health and increase health-promoting behaviors through proper nutrition and energy balance. We have three strategic areas for our funding: • • •

Food Security Improved and Optimum Nutrition Energy Balance Activity Models

Priority is given to programs that promote and allow for change at the systems-level. With major emphasis on underserved populations and communities, our funding targets both issues of over-nutrition and malnutrition in relation to specific issues in local and global communities. Our approaches are designed to immediately benefit and impact community members while indirectly influencing permanent changes at the policy level. Environment Portfolio [-] In the area of Environment, PepsiCo Foundation seeks programs that protect water sources and create better use for existing water, in order to help minimize the growing water crisis that is faced by millions of people around the globe. Our vision is to help all people and their entire local communities who are affected by this crisis access secure, safe water. The strategic focus areas include: • • •

Water Security Sustainable agriculture Adaptive approaches to our changing climate

We seek to achieve water security through proper local sanitation as well as source protection. Our first priority is funding "demand driven" or locally identified need-based programs. Programs that seek to educate local communities on the value of improving water, sanitation and hygiene are crucial, as a lack of sanitary practice or water purification is directly linked to illness and disease. The Foundation also seeks partners and programs that are proficient in implementing these practices through innovative approaches. Securing safe water supplies includes potable water for domestic use and consumption, as well as sufficient water for agriculture and livestock. Focusing on more efficient farming methods and conservative water use and produce "more crop per drop." To reduce the effects of water crisis it is vital to support improvements and achievements in sustainable agriculture. When coupled with access to technology communities are better able to source, afford and permanently manage their safe water resources. Efficient irrigation, sustainable farming practices and overall improved usage practices are critical components of our strategy. Funding is targeted towards areas in the greater Asia Pacific and African regions where water scarcity is a chronic and recurring crisis. Inclusion Portfolio [-] PepsiCo Foundation has a long history of funding diversity programs in education and workforce development with US-based community organizations. At the core, our objective has been to foster economic achievement and mobility for the underserved and minority populations. Strategic Areas: • •

Access to education and training Women's empowerment

Education is an essential tool for economic achievement, advancement, and mobility, and our funding has assisted hundreds of organizations significantly increase opportunity and advancement in urban communities. We affirm our commitment to this objective with a renewed dedication to funding dropout prevention initiatives in America's public schools. Studies show the impact of "prevention" dollars to keep children in school can be far more sustainable and impactful. Our priority is to focus on spreading evidence–based programs which contribute to lessening dropout incidence in schools with the most chronic and acute dropout rates. Additional focus is given to Workplace Equality throughout the world with particular emphasis placed on the climate of business environments. Our goal is to provide resources that promote open and equal business cultures.

The PepsiCo Family

Meet the three major divisions of the PepsiCo family: PepsiCo Americas Beverages, PepsiCo Americas Foods, and PepsiCo International.

PepsiCo Americas Beverages [-]

PepsiCo North American Beverages (PNAB) PepsiCo's beverage business was founded in 1898 by Caleb Bradham, a New Bern, North Carolina, druggist, who first formulated Pepsi-Cola. Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PNAB has well known brands such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Season's Best. PNAB manufactures and sells concentrate for some of these brands to licensed bottlers, who sell the branded products to independent distributors and retailers. PNAB provides advertising, marketing, sales and promotional support for its brands. This includes some of the world's best-loved and most-recognized advertising. In 1992 PNAB formed a partnership with Thomas J. Lipton Co. to sell ready-to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks.

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the company's flagship product. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. SoBe became a part of PNAB in 2001. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Gatorade thirst quencher sport drinks, was acquired by The Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink.

Latin Americas Beverages The Latin Americas Beverage business features a powerful suite of brands and distinct products tailored for the market.

PepsiCo Americas Foods [-] PepsiCo Americas Foods (PAF) is PepsiCo’s food and snack business in North and South America. Its portfolio of businesses includes Frito-Lay North America, Quaker Foods & Snacks, Sabritas, Gamesa and Latin America Foods.

Frito-Lay North America PepsiCo's snack food operations had its start in 1932. That year in San Antonio, Texas, Elmer Doolin bought the recipe for a corn chip product, and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started a business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Major Frito-Lay products include Lay’s potato chips, Doritos flavored tortilla chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles potato chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Lay’s Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay also sells a variety of branded dips, Quaker Fruit & Oatmeal bars, Quaker corn and rice snacks, Grandma’s cookies, nuts and crackers.

Quaker Foods North America The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today.

In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856. Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemima Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade was acquired in 1983. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. Its brands today include Quaker oatmeal, Life and Cap’n Crunch ready-to-eat cereals, Aunt Jemima mixes and syrups, and Rice-A-Roni, Pasta Roni and Near East side dishes. PepsiCo merged with The Quaker Oats Company in 2001.

Sabritas Headquartered in Mexico City, Sabritas is a leader in the Mexican snack and fun food market. Founded in 1943, Sabritas is renowned for the quality, variety and flavors of its products, and serves as the umbrella brand under which PepsiCo markets Frito-Lay products in Mexico, such as Cheetos, Fritos, Doritos and Ruffles. It is also the name brand for its own line of potato chips. Additionally, the business manufactures and markets several local brands such as Crujitos, Poffets, Rancheritos and Sabritones. Sabritas controls around 80% of the Mexican snacks market. PepsiCo acquired Sabritas in 1966.

Gamesa Headquartered in Monterrey, Mexico, Gamesa is a global leader in the cookies market, and Mexico's largest manufacturer of cookies. The company has offered its consumers a wide variety of high-quality products for every lifestyle, producing pastries, oats, cereals and other related products. It has production facilities in five states across Mexico. Among its most successful brands are Marías Gamesa, Emperador, Arcoiris, Mamut, Chokis, and Maizoro. In 1990, it was acquired by PepsiCo.

Latin Americas Foods The Latin Americas Foods business includes operations in Brazil, Argentina, Colombia, Peru and Venezuela. Its portfolio of brands includes global snacks such as Lay’s, Cheetos, Fritos and Doritos, as well as local brands like Lucky snacks in Brazil.

Company Leadership

We are a company full of strong, talented individuals starting at the top of our organization. Get to know the inspiring people helping lead PepsiCo on its 'Performance with Purpose' journey. "Together we are all building on the platform of human, environmental and talent sustainability while continuing to deliver great results." Indra K. Nooyi Chairman and CEO

Indra K. Nooyi Massimo F. d'Amore

John C. Compton

Chairman and CEO PepsiCo Americas

CEO PepsiCo Americas

CEO

Foods

Beverages

Michael D. White CEO PepsiCo Intl. & Vice Chairman, PepsiCo

Board of Directors and Committees

PepsiCo’s business strategy and affairs are overseen by our Board of Directors, which is comprised of two executive directors and ten independent outside directors. Only independent outside directors make up our three standing Board Committees, 1) Nomination and Corporate Governance, 2) Audit, and 3) Compensation

Directors

Shona Brown

Ian M. Cook

Dina

Victor J. Dzau,

Dublon

M.D.

Shona L. Brown Senior Vice President, Business Operations of Google Inc.

Nominating and Corporate Governance Committee Members [-] Ray L. Hunt, Chairman Victor J. Dzau, MD Arthur C. Martinez Sharon Percy Rockefeller Daniel Vasella Audit Committee [-] James J. Schiro, Chairman Ian M. Cook Dina Dublon Alberto Ibargüen Lloyd G. Trotter Compensation Committee [-] Arthur C. Martinez, Chairman Victor J. Dzau, MD Ray L. Hunt Sharon Percy Rockefeller Daniel Vasella

Corporate Officers [-] Indra K. Nooyi Chairman of the Board and Chief Executive Officer Mitch Adamek Senior Vice President and Chief Procurement Officer Peter A. Bridgman Senior Vice President and Controller Richard Goodman Chief Financial Officer Wahid Hamid Senior Vice President, Corporate Strategy & Development Julie Hamp Senior Vice President, PepsiCo Communications Mehmood Khan Chief Scientific Officer Lionel L. Nowell III Senior Vice President and Treasurer Ronald C. Parker Chief Diversity and Inclusion Officer

Larry D. Thompson Senior Vice President, Government Affairs, General Counsel and Secretary Cynthia M. Trudell Senior Vice President and Chief Personnel Officer Michael D. White Chief Executive Officer, PepsiCo International and Vice Chairman, PepsiCo

Principal Divisions [-] PepsiCo Americas Foods [-] 700 Anderson Hill Road Purchase, NY, 10577 (914) 253-2000 John C. Compton Chief Executive Officer • • • • •

Frito-Lay North America Quaker Sabritas Gamesa Latin America Region Food & Snacks

PepsiCo Americas Beverages [-] 700 Anderson Hill Road Purchase, NY, 10577 (914) 253-2000 Massimo F. d'Amore Chief Executive Officer • • • •

PCNA Gatorade Tropicana Latin America Beverages

PepsiCo International [-] 700 Anderson Hill Road Purchase, N.Y. 10577 (914) 253-2000 Michael D. White Chief Executive Officer PepsiCo International and Vice Chairman, PepsiCo • • • •

PepsiCo PepsiCo PepsiCo PepsiCo

Asia Europe Middle East & Africa United Kingdom

Compensation Committee [-] Arthur C. Martinez, Chairman Victor J. Dzau, MD Ray L. Hunt Sharon Percy Rockefeller Daniel Vasella

Corporate Officers [-] Indra K. Nooyi Chairman of the Board and Chief Executive Officer Mitch Adamek Senior Vice President and Chief Procurement Officer Peter A. Bridgman Senior Vice President and Controller

Pepsi Logo Pepsi-Cola is one of the most famous soft drinks consumed worldwide. Manufactured and marketed by PepsiCo, it was first developed and produced in the early 1890’s by Caleb Bradham, a pharmacist in New Bern, North Carolina labeled as “Brad’s drink”. In 1898, Bradham renamed his drink into “Pepsi-Cola”. On June 16, 1903, the title Pepsi-Cola was trademarked and had since remained unchanged. But one aspect of Pepsi-Cola that witnessed many transformations over the years is the Pepsi logo. The Pepsi logo is one of the most famous and well-recognized logos in the world. In 1898, Bradham used a scribbled logo script as the first Pepsi logo to brand the product. When his business got established and people started enjoying his drink, Bradham decided to modify the Pepsi logo into a more customized version of the previous logo script. Thus, in 1905, a modified script logo was introduced, followed by a second change in Pepsi logo in 1906 with the inclusion of the slogan, “The Original Pure Food Drink”, in it. During the 1933’s sugar crisis, Loft, Inc. bought Pepsi-Cola. As part of their marketing strategy, Pepsi-Cola doubled the quantity of its drink from six-ounce package size to twelve-ounces for 10 cents. Thus, the slogan “Refreshing & Healthful” was added to the Pepsi logo, which was printed on the bottle. When the price for the twelve-ounce bottle dropped to 5 cents, Pepsi-Cola excluded that tagline from the Pepsi logo.

In 1940, Walter Mack, the CEO of Pepsi-Cola, adopted the idea of 12-oz. embossed bottle with “Pepsi-Cola” baked into the glass. He further developed the idea of introducing the new bottle design with crown, labeled with the Pepsi logo. In 1941, the Pepsi bottle crown colors were changed to red, white and blue, along with the Pepsi logo, to commemorate the war efforts of the country. By 1943, the Pepsi logo adopted a “bottle cap” look that included the slogan, “Bigger Drink, Better Taste”. Later, in 1962, the Pepsi logo was replaced with two bulls-eye marks encircling “Pepsi”, and then again in 1973, into a boxed Pepsi logo with minor typeface changes. In 1991, Pepsi commemorated the evolution of its scripted Pepsi logo by featuring a logo design with an italic capital typeface. Later at the company’s 100 years celebration in 1998, Pepsi-Cola unveiled a new logo that symbolized the brand’s innovation and global recognition. The new Pepsi logo consists of a three-dimensional globe against an ice blue background, with the inclusion of the previously designed Pepsi typeface. It has been the official Pepsi logo of PepsiCo, till date. Over the past century, the Pepsi logo has been evolved into remarkable designs with significant modifications. All in all, Pepsi logo is an exemplary piece of creativity and innovation. No doubt, it is one of the most recognized logos, ever.

2008 Milestones

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PepsiCo Foundation announces two major new grants to WaterPartners and Safe Water Network programs to provide access to safe water and sanitation in developing countries PepsiCo Again Named to the Dow Jones Sustainability Index PepsiCo Agrees to Buy Bulgaria's Leading Nuts and Seeds Company PepsiCo Announces Initiatives With the Earth Institute and H2O Africa to Drive Sustainable Water Practices Forbes Names PepsiCo Among Its Best Big Companies PepsiCo India Commissions First Remote Wind Turbine to Generate Renewable, Clean Energy CRO Names PepsiCo to Top 25 100 Best Corporate Citizens 2008 PepsiCo to Buy Russian Juice Leader, Lebedyansky Employees Lead Effort to Make Chicago Plaza First LEED-Certified PepsiCo Headquarters Gatorade Launches Gatorade Tiger with Comprehensive Integrated Marketing Campaign PepsiCo Honored with 2008 Energy Star Partner of the Year Award UK Vitamin Water Brand- V Water Acquired by PepsiCo Quaker Plant in Cedar Rapids Closes and Reopens Facility Due to Flooding to Protect Employees PepsiCo Foodservice and Naked Juice Expand Starbucks Presence Gatorade Sports Science Institute Gathers World's Leading Researchers on Protein Nutrition PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award Wall Street Journal Article Recognizes PepsiCo for Leadership in Employment of People with Different Abilities PepsiCo and Frito-Lay Join SmartWay in Commitment to Reduce Greenhouse Gas Emissions PepsiCo Beats Coke in Race to Launch New Natural Sweetener (Stevia) PepsiCo France Recognized as "Great Place To Work" by Institute Survey PepsiCo Commits to Reducing Acryalmide Levels in Potato Chip Products and Restructured Potato Snacks in California Subway Names PepsiCo "Vendor of the Year" for Sustainability Leadership Tazo Tea Joins Pepsi Lipton Partnership

2007 Milestones

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PepsiCo signs Maria Sharapova for International endorsement of Gatorade and Tropicana Tropicana launches Tropicana Healthy Heart with Omega-3s, the first national orange juice to include omega-3s Ruffles unveils new packaging to reflect its switch to 100% pure sunflower oil PepsiCo announces new Diversity & Inclusion Leadership Award inspired by Steve Reinemund Mountain Dew and AMP Energy sponsor the Winter X Games Aquafina launches Aquafina Alive—a low calorie, vitamin-enhanced water beverage Quaker Oats debuts new Quaker Life Chocolate Oat Crunch Cereal Flat Earth Fruit and Vegetable Crisps hit stores nationally Fritos Corn Chips celebrates 75th Anniversary with retro packaging Near East celebrates its 45th Anniversary with a recipe contest

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Tropicana launches Tropicana Fruit Squeeze, a 20-calorie drink with real Tropicana fruit juice Lay's launches 'Share the Joy' program to help the Make a Wish Foundation raise funds Pepsi-Cola North America launches Diet Pepsi MAX Oh Boy! Oberto brand debuts 100-calorie Jerky Bites in Original Beef and Teriyaki Turkey flavors IZZE Launches IZZE Esque, a low-calorie, nothing artificial beverage in three flavors: Sparkling Mandarin, Sparkling Black Raspberry and Sparkling Limon. Propel unveils new 'Fit Has a Feeling' campaign and New Powder Packets for On-The-Go New Quaker Mini Delights launches offering great taste and portion control in a satisfying serving of mini snack cakes Diet Pepsi Jazz introduces new Caramel Cream flavor Grandma's Cookies offering limited-edition flavors for spring: Iced Lemon and Sugar flavors PepsiCo launches Smart Spot Dance! Initiative with celebrities Mario Lopez and LaChanze to help African American and Hispanic families lead healthier, more active lifestyles Walkers is the first major food brand in the world to display a carbon footprint reduction logo on its packs SoBe Beverages launches SoBe Essential Energy PepsiCo Announces 25% Dividend Increase and Raises Share Repurchase Target; Nooyi Assumes Chairman Title EPA Names PepsiCo 2007 ENERGY STAR(R) Partner of the Year PepsiCo Makes Largest Corporate Purchase of Renewable Energy Certificates Pepsi launches "Design Our Pepsi Can" National Promotion Tropicana unveils New Organic Line – Tropicana Organic QTG facility earns an Energy and Environmental Design (LEED) "Gold" certification from the U.S. Green Building Council PCNA and Frito-Lay launch "Shrek the Third" National Summer Promotion Indra Nooyi receives the Outstanding American by Choice Award PepsiCo makes Fortune magazine's '100 Best MBA Employers' list Diet Pepsi Launches New Look, New Ad Campaign and New Attitude – Diet Pepsi's "More Cola Taste" Pepsi, Diet Pepsi and Mountain Dew topped the 2007 Brand Keys Customer Loyalty Engagement Index which tracks consumers' relationships with brands PepsiCo joins U.S. Climate Action Partnership as part of its commitment to sustainability Lipton introduces Lipton PureLeaf EPA Honors Frito-Lay's Jonesboro facility for its sustainability efforts to conserve energy and resources Cold Stone Creamery and Mountain Dew Join Forces to Introduce Dew Iced Mountain Dew Unveils unique, limited edition aluminum bottles Tostitos introduce Flour Tortilla Chips and two new Dairy Dips Nationwide PepsiCo named a 2007 Working Mother 'Best Company for Multicultural Women' PepsiCo wins two awards –Best Environmental/Wildlife Campaign and Best Cause Marketing Event -- at Fifth Annual Cause Marketing Halo Awards Frito-Lay teams up with the Make-A-Wish Foundation to help children with life-threatening diseases Dunkin' Donuts launches SoBe Energy Coolatta Pepsi wins Webby Award for its execution of the "Best Sports Website" PepsiCo and Pepsi Americas, Inc jointly acquire Sandora, a Leading Juice Company in Ukraine PepsiCo earns spot in Black Enterprise Magazine's '40 Best Companies for Diversity' Lay's and Doritos Campaigns win Top PR Awards Doritos 'Crash the Super Bowl' program Wins International Advertising Award at the International Advertising Festival

2006 Milestones

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Quaker Snacks Unveils Breakfast Cookies Doritos unveils new packaging, including an updated logo PepsiCo Launches Pepsi Limon in Peru PepsiCo Completes Acquisition of Stacy's Pita Chip Company Tropicana Now Offering OJ with Benecol PepsiCo Foodservice Partners With Cracker Barrel to Serve Up Fritos-Branded Menu Item PepsiCo Foodservice Pours Two New Account Wins: Famous Dave's of America and Roundtable Pizza Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi Campaign

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North American Coffee Partnership Launches New Starbucks Beverages, Starbucks Iced Coffee, Starbucks Iced Coffee Light as well as Strawberries and Creme Frappuccino and Starbucks Doubleshot Light PepsiCo India re-launches Mirinda SoBe Launches New SoBe Life Water Cheetos kicks off the biggest marketing campaign in its history with "Undercover Chester," an integrated communications platform that asks consumers to help Chester Cheetah recover the stolen recipe for Cheetos In selected cities cross the United States, Pepsi distributes more than three million free cans of newly reformulated Diet Mountain Dew, marking the largest single-day sampling effort in company history Frito-Lay announces the launch of a new line of snack chips called Lay's Sensations and Tostitos Sensations Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four wholesome grains to one of America's favorite tortilla chips Sam's Club teams with Aquafina to "Return the Warmth" to local communities through a national large-scale recycling program. The 50 communities to collect the most Aquafina bottles and deposit them at designated collection locations receive a $1,000 grant from Sam's Club in addition to an assortment of fleece jackets made from recycled plastic bottle material Lay's Introduces Hot 'n Spicy KC Masterpiece BBQ Potato Chips Grammy award winning artist Mariah Carey writes and records original ringtones for the Pepsi Cool Tones & Motorola Phones promotion. Rice-A-Roni introduces a new line of whole-grain side dishes Pepsi Joins Bipartisan Alliance, Adopts New School Policy to Promote Healthier Lifestyles for Elementary, Middle and High School Students Frito-Lay cuts saturated fat in Lay's, Ruffles by more than 50% with move to NuSun™ Sunflower Oil Pepsi unveils new Dole Sparklers and Sierra Mist Cranberry Splash PepsiCo announces that it will be the official, exclusive food and beverage partner of the highly anticipated Superman Returns film Starbucks and PepsiCo sign a distribution agreement for Ethos Water PepsiCo, the National Hockey League (NHL) and the National Hockey League Players' Association (NHLPA ) sign an exclusive multi-year beverage and snack deal PepsiCo, National Hockey League and National Hockey League Players Association sign multi-year deal, giving PepsiCo exclusive rights in the beverage, sports beverage, bottled water and snack categories. With this deal, Gatorade becomes the official sports drink of NHL PepsiCo Mexico celebrates the official launch of the 'Vive Saludable' program illustrating their commitment to promote healthy lifestyles for consumers and employees and together help reduce the risk of nutrition-related health problems, including obesity Diet Pepsi launches Jazz, a new line of zero-calorie colas available in rich flavors like Black Cherry French Vanilla and Strawberries & Cream PepsiCo introduces Ben & Jerry's Milkshakes, a rich, creamy drinkable treat in three classic flavors--Cherry Garcia, Chunky Monkey and Chocolate Fudge Brownie Tropicana debuts Tropicana Pure--a new line of 100% premium juices PepsiCo is added to the Dow Jones Sustainability North America Index (DJSI) Quaker Oats debuts its new Quaker Oatmeal Crunch, warm oatmeal with the crunchy texture of cold cereal Indra Nooyi named Chief Executive Officer of PepsiCo as of October 1, 2006 Frito-Lay debuts action cups Frito-Lay kicks of its nationwide rollout of Lay's with 100% Pure Sunflower Oil Pepsi acquires IZZE beverage company Arby's names Pepsi-Cola as its Food and Beverage Supplier Award winner Golden Corral restaurants and Pepsi announce a multi-year agreement making Pepsi the chain's preferred beverage supplier in all locations Grandma's Cookies releases 2 limited-edition 'fall favorites' flavors—Spiced Molasses and Fall Fudge Chip Cold Stone Creamery announces a multi-year agreement making Pepsi its exclusive beverage supplier Frito-Lay North America signed agreement with the Alliance for a Healthier Generation for a new policy for selling our foods in schools Frito-Lay launches new Baked!Tostitos Scoops! Tortilla chips, with lower calorie and lower fat benefits Pepsi signs 5-year sponsorship renewal with Major League Baseball Properties making Pepsi the "Official Soft Drink of Major League Baseball" PBSG Parkwood and Frito-Lay headquarters associates raise more than $1.8 million dollars in the American Heart Association Walk PepsiCo announced intent to acquire Naked Juice Company Federal Trade Commission clears PepsiCo for Naked Juice Co. purchase PepsiCo announces it will acquire New Zealand snack company Bluebird Foods

2005 Milestones

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Frito-Lay introduces Doritos Black Pepper Jack Diet Sierra Mist becomes Sierra Mist Free. SoBe Launches Sugar-Free No Fear. PepsiCo launches "Smart Spot" symbol in Canada Tropicana Teams With Weight Watchers to Offer Tropicana Light 'n Healthy as Part of 'Points' Program

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Pepsi Lime and Diet Pepsi Lime Launch Tropicana Twister Soda Launched in April The Fuddruckers restaurant chain signed a 7-year, 5.6 million gallon agreement with Pepsi-Cola North America to serve Pepsi products. Pepsi-Lipton Tea Partnership Announces New Lipton Original Iced Tea and New Lipton Iced Tea; Reformulated Ready-to-Drink Teas Hit Store Shelves Pepsi-Cola North America adds to its portfolio of Dole 100% juices – Ruby Red Grapefruit – as well as a new line of 50% juice beverages called Dole Lights. Gatorade introduces Gatorade Endurance Formula Pepsi-Cola North America announced it will add Splenda® brand sweetener to a newly reformulated Pepsi ONE, creating a full-flavor cola taste with only one calorie. Frito-Lay Brings Wasabi Funyuns to Continental United States Quaker snack bars re-launched with new branding, packaging and advertising PepsiCo Celebrates 40th Anniversary PepsiCo International announced the appointment of Pioneer Foods, a leading South African food and beverage company, as its franchisee in the Republic of South Africa. Tropicana has launched 'Tropicana Sensations', a new line of premium fruit juices in Spain PepsiCo launches Quaker Milk Chillers Gatorade Partners with NFL to Educate High School Football Coaches on Proper Hydration During Practice Pepsi-Cola North America Launches Mountain Dew Pitch Black II Quaker Introduces Weight Control Instant Oatmeal Diet Pepsi Presents the NFL Rookie Challenge -- Winner Receives Superbowl Tickets for Life Tropicana Launches All Fruit Smoothies Pepsi is chosen as the exclusive beverage provider for Soup Kitchen International, Inc. and The Original SoupMan PepsiCo Donates $2 Million to Pakistan Earthquake Victims PepsiCo Launches New Samba Drink in Australia Pepsi-Cola North America Launches MDX Energy Soda Pepsi Partners with Harvey's, Swiss Chalet and Milestone's Restaurants PepsiCo "Twistos" Croutons Launched in Russia Gatorade Launches Propel Calcium - First Calcium-Enriched Fitness Water Frito-Lay Launches Quaker Oats in India Walkers to Launch New Beef Jerky Product in the U.K. under its Nobby's brand PepsiCo Health & Wellness Launches Everyday Smart Moves Magazine PepsiCo, Cindy Crawford and KaBOOM Build First Smart Spot Playground in Washington, D.C. Pepsi Latte Launches in Thailand Tropicana FruitWise Campaign Launches Mountain Dew Sponsored ESPN X Games Debut in the Middle East PepsiCo Launches Pepsi Cappuccino in Romania Quaker Launches Vanilla Yogurt Crunch Cereal Britvic Launches Pepsi Max Cino

2004 Milestones

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PepsiCo Launches 'HealthRoads' Wellness Benefit for Associates and Their Families PepsiCo's new "Smart Spot" program is featured as an example of the food industry's focus on health and wellness in today's edition of USA Today. Frito-Lay Launches Doritos and Cheetos Halloween Treat Multi-Sacks Frito-Lay's 24-count Multi-Sack variety pack won the Institute of Packaging Professional's (IoPP) Integrity Award, one of the industry's top awards, at this year's AmeriStar Packaging Awards. Frito-Lay Introduces Doritos Black Pepper Jack Diet Sierra Mist Becomes Sierra Mist Free Pepsi Bottling Group (PBG) – PepsiCo's biggest bottler bought Phil Gaudreault et Fils Ltee, a Quebec-based Pepsi bottler. SoBe Launches Sugar-Free No Fear PepsiCo Launches 'Smart Spot' Symbol in Canada Frito-Lay launches Doritos Edge and Tostitos Edge -- line extensions with 60% fewer carbohydrates. Gatorade introduces Gatorade Endurance Hydration Formula-- a specialized sports drink to meet the needs of endurance athletes.

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Frito-Lay introduces Quaker Chewy Cookies & Milk granola bars and Quaker Fruit & Oatmeal cereal bars. Frito-Lay Canada eliminates trans fats from chips and launches a line of All Natural and Organic products. Pepsi-Cola to launch Pepsi Edge, the first full-flavored cola with 50% less sugar, carbohydrates and calories than regular cola. PepsiCo publishes first Corporate Citizenship report in its 2003 Annual Report.

2003 Milestones

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Pepsi-Cola launches Sierra Mist nationally. PepsiCo launches "Get Active/Stay Active" program. Quaker Chewy introduces Quaker Chewy Wholesome Favorites and Quaker Chewy Trail Mix. Gatorade unveils In-Car Hydration System for NASCAR Drivers. SoBe sponsors U.S. Open Snowboarding Championships. Pepsi announces plans to launch Mt. Dew LiveWire, an orange drink, this summer. Pepsi-Cola signs an exclusive four-year sponsorship deal with the Canadian Hockey Association, making Pepsi the official soft drink. Pepsi announces four-year sponsorship agreement with the UK Football Association. Frito-Lay announces new line of snacks made with organic ingredients called "Natural Snacks." "Pepsi Stuff" Campaign kicks-off in Canada. Frito-Lay finds winner of "Would You Name Your Baby Horton" search celebrating the "re-birth" of its Ruffles brand. The child will receive $50,000 college tuition fund from Frito-Lay. PepsiCo creates PepsiCo International, the business that will unite all international snack, beverage and food units in an effort to drive faster growth and improved profitability around the world. PepsiCo releases a Spanish-language "Power of One" television commercial starring Puerto Rican singer and actor, Ponce, and Velasquez, Mexican-American singer and actress. Pepsi–Cola trademark turns 100 years old. Quaker rolls out new Oatmeal Breakfast Squares. Pepsi Vanilla is launched in the United States. Tropicana introduces Tropicana 100% Juice Blends. Pepsi unveils a new tagline: "Pepsi. It's the Cola." It is the brand's first major campaign shift since 1999 and highlights how Pepsi goes with everything from food to fun.

2002 Milestones

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Frito-Lay introduces Go Snacks, canisters that truly go anywhere. Gatorade introduces new Gatorade ICE in three flavors- Orange, Lime and Strawberry. Tropicana Pure Premium announces sponsorship of Disney's award-winning show The Lion King. Tropicana® Pure Premium® introduces 14-oz. single-serve resealable bottle you can take with you for the on-the-go- consumers. Diet Pepsi has a new look. "Mr. Green," a green-tinted carbonated soft drink with caffeine and ginseng, is launched under SoBe's New Age beverage line in April. The North American Coffee Partnership (NACP), a joint venture between Starbucks Coffee Company and PepsiCo, Inc. introduces Starbucks Doubleshot. Quaker Oatmeal this year celebrates the 125th anniversary of the nation's number-one-choice for a nutritious, hot breakfast cereal. Gatorade turns 35. It was created in 1960s to help performance of Florida Gators football team and now is the leading sport drink. New line of Gatorade brand drinks, Xtremo, comes in three new flavors - Mango, Tropical and Citrico. PepsiCo and Kenneth Cooper, M.D., M.P.H., of Cooper Concepts Inc. (CCI), a division of the renowned Cooper Aerobics Center in Dallas, TX enter into an agreement to promote nutrition, fitness and wellness. Dole Beverages enters chilled orange juice business as it launches five new flavors and packages.

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Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target active, health-conscious adults in four lightly sweetened varieties including B-Power, Calcium+, Daily C and MultiV in 20-oz. bottles. PepsiCo reorganizes to unite all North American beverage operations, including Pepsi-Cola, Tropicana and Gatorade, into one new division -- PepsiCo Beverages and Foods North America. PepsiCo announces $5 billion share repurchase program. Starbucks unveils white vanilla and coconut crème Frappuccino. Tropicana has new ad campaign for Tropicana Pure Premium Healthy Kids - TV spots designed to capture the essence of children's needs. Galaxy Nutritional Foods launches Ultra Smoothies made with Tropicana juices. PepsiCo publishes Health and Wellness Philosophy. (on pepsico.com) Frito-Lay announces it is eliminating trans fats from Doritos, Tostitos, and Cheetos. Frito-Lay announces plans to introduce Lay's Reduced Fat chips and Cheetos Reduced Fat snacks. Quaker's Nutrition for Women team has developed a Food Guide Pyramid for Women as well as an online nutritional assessment. Brand Pepsi has a new look. Beyonce Knowles has joined the Pepsi family and will collaborate with Pepsi two new TV commercials, radio, and Internet ads. PepsiCo introduces Marathon Kids, a program that encourages kids and their families to be more physically active. The program debuts in Dallas, TX. Tropicana introduces a new campaign with the tag line "So pure. So alive. Tropicana Pure Premium." Tropicana Pure Premium and Quaker Oatmeal launch the Heart and Soul Mates Support Network featuring nutrition tips, motivational messages and coaching advice, to help consumers turn healthy habits into life-long changes.

2001 Milestones

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Pepsi-Cola Company launches Dole single-serve juices in vending machines, coolers and other retail outlets throughout the United States. Pepsi-Cola's flagship brand will have new tagline, "The Joy of Pepsi." Tropicana celebrates a company milestone - 300 billion fresh oranges squeezed since the company began making country's first ever mass distributed, not-from-concentrate juice in 1947. Tropicana introduces Smoothies. A natural juice-based product, smoothies combine fruit juices and non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and convenience. Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide. It is Mountain Dew's first line extension since the introduction of Diet Mountain Dew in 1988. May 2 -The Board of Directors of PepsiCo, Inc. elected Steven S Reinemund chairman of the board and chief executive officer, succeeding Roger Enrico who will become vice chairman. The board also elected Indra K. Nooyi as a director and gave her the additional title of president of PepsiCo in addition to CFO. Frito-Lay introduces Lay's Bistro Gourmet potato chips. Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new cola with lemon are entering retail outlets in selected U.S. markets. SLAM, the orange brand Mirinda, is launched in Italy. PepsiCo acquires Tasali Foods, Saudi Arabia's leading snack company. On August 2, PepsiCo merges with The Quaker Oats Company, creating a $25 billion food and beverage company focused on the rapidly growing consumer demand for convenience. Tropicana Pure Premium Low Acid orange juice makes official debut at Tropicana 400. Diet Sierra Mist is Introduced.

2000 Milestones

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Pepsi-Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes Pepsi One and Diet Coke as well as regular cola. Pepsi-Cola teams up with Yahoo Inc., the biggest web navigation company, in a multimedia marketing campaign aimed at teens and young adults. Tropicana, in a joint venture with Galaxy Foods Co., will introduce an icy smoothie soy milk-and-fruit drink, made with juice, fruit puree along with soymilk and soy protein. Aquafina brand bottled water becomes the best-selling brand of single-serve bottled water in US retail channels. PepsiStuff.com, a web site for merchandise, discounts and digital music files from biggest names in movies, music, video games, apparel and sports is launched in joint promotion with Yahoo.

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Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda. The North American Coffee Partnership launched Caramel-flavored bottled Frappuccino Coffee Drink - the sixth flavor addition to its popular line of ready-to-drink coffee. PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage Company, whose highly innovative SoBe brand has made it one of industry's most successful companies. PepsiCo, Inc. and The Quaker Oats Company reached an agreement to merge. PepsiCo completes the acquisition of a majority stake in South Beach Beverage Co. PepsiCo sales are $20 billion and the company has 125,000 employees at year end. PepsiCo launches Diversity@work, http://www.pepsico.com/diversity website.

Print1999

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Milestones

Tropicana introduces two new calcium-fortified Pure Premium juices: Pure Premium Grovestand Calcium and Pure Premium Ruby Red Grapefruit Calcium. Pepsi launches "The Joy of Cola" advertising campaign. In March, The Pepsi Bottling Group, the world's largest Pepsi bottler, begins trading on the New York Stock Exchange. It is listed under the symbol PBG. The $2.3 billion public offering is among the biggest initial public offerings in stock market history. Steve Reinemund named president of PepsiCo. Hallie Eisenberg "Joy of Cola" commercials named #6 of "Fifty Greatest TV commercials of all time," by TV Guide. Lipton introduces Iced Tea Green Tea with Honey and Diet Peach. PepsiCo and Suntory Limited signed an agreement to create a joint venture linking bottling networks in North Carolina and New York. The new company, Pepsi Bottling Ventures, will be the third largest bottler in the Pepsi system. Tropicana juices are entering the huge India market for the first time. Spearheaded by Tropicana Asia Pacific, orange juice will appear in the New Delhi and Bangalore markets. Frito-Lay introduces a new corporate logo. Frito-Lay signs agreement with Oberto Sausage to be the exclusive distributor of the natural-style jerky.

1998 Milestones

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Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour. PepsiCo Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of PepsiCo employees. Pepsi introduces new look called the "Globe" which prominently features a 3-dimensional Globe against a blue ice backdrop. Pepsi-Cola announces breakthrough product: Pepsi One, great-tasting, one-calorie cola is first in United States with newly FDA approved sweetener Sunett®. Former Chairman and CEO Wayne Calloway dies on July 9th. He joined PepsiCo in 1967 becoming its Chairman and CEO in 1986. PepsiCo acquires Tropicana Products from Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo. Tropicana was founded in 1947 by Anthony Rossi. Its major brand is Tropicana Pure Premium Juices. The Frito-Lay Company purchases Smith's Snackfood Company in Australia from United Biscuits Holdings, Inc. (Purchase completed on Aug. 26.) In November the PepsiCo Board of Directors authorizes the company to convert a significant portion of its $7 billion company-owned bottling operations, The Pepsi Bottling Group (PBG) into public ownership. PepsiCo signs groundbreaking 10-year agreement with the YMCA of the USA through which both Pepsi-Cola and Frito-Lay will develop national and local marketing programs to support the organization's many charitable efforts. Frito-Lay becomes the snack chip leader in South and Central America as it enters a joint venture with Empreseas Polar SA of Venezuela. Frito-Lay acquires Barcel, Chile's second-largest snack company. Frito-Lay acquires an expanded state in Tasty Foods Egypt. Pepsi and Frito-Lay media buying is consolidated. PepsiCo products contribute more than any other packaged goods company to the sales growth in U.S. supermarkets, mass merchandisers and chain drug stores. Tropicana Products, Inc. acquires Alimentos del Valle S.A., one of Spain's leading chilled juice and soup companies.

Print1997

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Milestones

Pepsi-Cola introduces new advertising campaign with the theme "Generation Next." Pepsi-Cola North American bottling operations become a separate unit called The Pepsi-Cola Bottling Co. National roll-out of Aquafina bottled water. Frito-Lay announces plans to buy the 104-year-old snack, Cracker Jack, a candy-coated mix of popcorn and peanuts from Borden Foods Corp. Pepsi-Cola kicks off the celebration of its 1998 100th Anniversary with first worldwide bottlers conference, held in Hawaii. The event is held during the same time as first bottler's conference. Frito-Lay introduces Doritos 3D's Tortilla Chips, a triangle-shaped chip.

Print1996

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Milestones

Pepsi-Cola launches Pepsi World at www.pepsiworld.com "Pepsi Stuff" unveiled. Consumers save points for merchandise. PepsiCo stocks splits two-for-one. Pepsi-Cola domestic and international operations combined into Pepsi-Cola Company. International and domestic snack food operations combined into one business unit called Frito-Lay Company. Mountain Dew launches a massive beeper network called "The Mountain Dew Extreme Network." PepsiCo, Inc. and Lucasfilm Ltd. announce the largest promotional alliance in entertainment history, linking existing and future Star Wars series with PepsiCo beverage, snack foods and restaurant brands worldwide. Pepsi-Cola and MTV establish a partnership to develop international programming, cross promotions, marketing tie-ins and special events. Filming of the world's first commercial in space. Cosmonauts shoot a large blue Pepsi can in orbit outside the MIR Space station. International retail sales of Doritos brand tortilla chips exceed $250 million, global expansion nears 20 countries. PepsiCo announces plans to spin off its restaurant businesses as an independent publicly-traded company, sell its food distribution company and focus on its core beverage and snack food businesses. The spin-off is completed October 6, 1997. Shareholders receive one share in the new restaurant company, Tricon Global Restaurants, Inc., for every 10 shares they hold in PepsiCo, Inc. PepsiCo is now a $20 billion company with approximately 140,000 employees worldwide. Pepsi-Cola is top ad scorer in Super Bowl. Mountain Dew sponsors the Grammy Awards. Theme line is "Been There, Done That, Tried That." The Pepsi Lipton Tea Partnership debuts new ad campaign emphasizing "There's only one Original." Pepsi-Cola introduces Smooth Moos Smoothies, a line of low-fat dairy shakes. Roger Enrico succeeds Wayne Calloway as chief executive officer and chairman of the Board of Directors.

1995 Milestones

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Pepsi-Cola introduces "Nothing else is a Pepsi" theme line. Pepsi-Cola is top ad scorer in Super Bowl.

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Mountain Dew sponsors the Grammy Awards. Theme line is "Been There, Done That, Tried That." The Pepsi Lipton Tea Partnership debuts new ad campaign emphasizing "There's only one Original." Pepsi-Cola introduces Smooth Moos Smoothies, a line of low-fat dairy shakes. 7Up International launches 7UP Ice Cola, a new clear cola. Frito-Lay aggressively expands its low/no-fat snack segment. Baked Lays is introduced. Frito-Lay tests Baked Tostitos, Rold Gold Fat Free Pretzels, Ruffles Reduced Fat Potato Chips and Tostitos fat-free salsas and black bean dip brands. Campaign line is "Taste the fun, not the fat." PepsiCo will introduce Lay's brand potato chips in 20 markets throughout the world. PepsiCo is on-line at http://www.pepsico.com

1994 Milestones

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Pepsi-Cola is first major soft drink maker to begin producing and distributing its product in Vietnam. Pepsi-Cola launches its sports drink All Sport. It is sold in 2001. Pepsi-Cola International acquires Indian company, its first big bottling plant in Bombay. Doritos is introduced to the United Kingdom, marking the creation of a new "global brand." Frito-Lay and K.C. Masterpiece Original Brand Barbecue Sauce launches Lay's Masterpiece brand Barbecue Flavor Potato Chips, marking the first time Lay's has entered into a co-branding agreement. PepsiCo and Starbucks form the North American Coffee Partnership to jointly develop ready-to-drink coffee beverages. Pepsi-Cola licenses the Citrus Hill trademark from The Procter & Gamble Co. to launch a line of fountain juices and drinks. China gets cheese-less Cheetos, the first time a major snack-food brand will be produced in China for Chinese tastes. Reba McEntire becomes first celebrity to appear nationally on a Frito-Lay package. Frito-Lay nationally launches new baked Rold Gold Fat Free Thins Pretzels, the first fat free reduced sodium pretzel introduced by the company. Wake Forest University names its School of Business and Accountancy in honor of Wayne Calloway. PepsiCo sales reach $30.4 billion. There are 470,000 employees worldwide, making PepsiCo the third largest employer.

1993 Milestones

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Frito-Lay launches new Doritos brand Tortilla Thins. Within five months of launch, Tortilla Thins breaks into the ranks of the 10 largest-selling snack chips in the U.S. After a 27-year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in Times Square. Both PepsiCo beverages and snack food operating profits pass the $1 billion mark. Pepsi-Cola introduces freshness dating. Frito-Lay introduces Baked Tostitos brand Tortilla Chips. Pepsi introduces "The Cube," an innovative 24-can multipack, that satisfies growing consumer demand for convenient large size soft drink packaging. PepsiCo acquires East Side Mario's Restaurants Inc. It sells the 40 units in 1997. PepsiCo acquires D'Angelo Sandwich Shops chain, which is sold in 1997. Pepsi-Cola International introduces Pepsi Max, a soft drink with unique blend of sweeteners that delivers maximum cola taste in a no-sugar product. Frito-Lay nationally launches Wavy Lay's Original and Au Gratin flavors. Pepsi-Cola introduces Aquafina bottled water into test market.

1992 Milestones

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PepsiCo purchases an equity interest in California Pizza Kitchen. It is sold in 1997. Pepsi-Cola introduces new "Gotta Have It" advertising theme and launches the "Gotta Have It" card. Frito-Lay and General Mills agree to merge snack food businesses in Europe. Frito-Lay introduces reformulation of Doritos brand Nacho Cheesier flavored tortilla chips. Frito-Lay presents network Lay's/Ruffles advertising -- the first in 10 years. Frito-Lay enlists George Foreman for Doritos advertising. Pepsi introduces new slogan "Be Young - Have Fun - Drink Pepsi." Pepsi-Cola begins distribution of Lipton's line of ready-to-drink teas nationwide.

1991 Milestones

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PepsiCo acquires an equity interest in Wedel SA, the leading manufacturer of chocolate and confectionery in Poland Snacks now include operations in 23 countries. Pepsi-Cola introduces a new logo, its eighth in 93 years. Advertising features rap singer MC Hammer. Pepsi-Cola forms joint venture with Thomas J. Lipton Co. to develop and market tea-based drinks. Frito-Lay launches Sunchips, its first multigrain snack. Frito-Lay introduces Cheetos Paws. Frito-Lay introduces Tostitos brand Restaurant-Style tortilla chips. Ray Charles teams up with the Uh-Huh Girls. The slogan for Diet Pepsi is modified to "You Got The Right One Baby, Uh-Huh!" PepsiCo purchases an equity position in Carts of Colorado, Inc., the leading manufacturer and marketer of mobile merchandising equipment. It is sold in 1995.

1990 Milestones

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PepsiCo stock splits three-for-one. PepsiCo acquires a controlling interest in Gamesa, Mexico's largest cookie company. Frito-Lay advertising for Doritos brand tortilla chips features talk celebrity Jay Leno. PepsiCo signs the largest commercial trade agreement in history with the Soviet Union. PepsiCo profits exceed $1 billion for the first time.

1989 Milestones

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PepsiCo acquires Walkers Crisps and Smith Crisps, two of the United Kingdom's leading snack food companies. PepsiCo acquires Smartfood ready-to-eat popcorn business. PepsiCo enters top 25 of Fortune 500 ranking with sales of $15.4 billion, it is number 23. The company has more than 300,000 employees.

1988 Milestones

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Pepsi-Cola International enters a landmark joint venture agreement in India. Renewed accord with the Soviet Union extends PepsiCo trade relationships. Hostess Frito-Lay, a major new partnership in Canada, is formed with Hostess Foods in Canada. "Chase," a four-part Pepsi ad featuring Michael Jackson in his first-ever episodic commercial, airs during the Grammy awards and becomes the most-watched commercial in advertising history. Pepsi-Cola runs first paid advertisement on Soviet TV during "Pozner in America," a joint US-Soviet production. Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It is the world's largest selling snack chips brand. PepsiCo introduces SharePower Stock Option program for all employees, becoming the first large corporation to award stock options to virtually all full-time employees.

1987 Milestones

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"Mustang," a Diet Pepsi commercial, becomes the first ad ever to appear in a home video cassette. The cassette, "Top Gun," becomes the largest-selling video ever. Pepsi sponsors tours of major music stars, including Miami Sound Machine, David Bowie and Tina Turner. Frito-Lay pioneers the use of hand-held computers for marketing.

1986 Milestones

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Wayne Calloway becomes chairman of the Board of Directors and chief executive officer in May when Donald M. Kendall retires. The corporation is reorganized and decentralized. Beverage operations are combined under PepsiCo Worldwide Beverages; snack food operations are combined under PepsiCo Worldwide Foods.

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Shareholders approve reincorporation of PepsiCo in North Carolina. PepsiCo stock splits three-for-one. PepsiCo purchases Kentucky Fried Chicken, the leader in the quick service chicken market. KFC was founded by Colonel Harland Sanders. Colonel Sanders began franchising the company in 1952. KFC is spun off along with Pizza Hut and Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997. PepsiCo purchases 7Up International, the third largest franchise soft drink operation outside the United States. PepsiCo passes $10 billion in sales. PepsiCo is listed on the Tokyo stock exchange. Chester Cheetah makes his prime-time television debut for Frito-Lay with a fully animated commercial for Cheetos cheese flavored snacks. "Dew it Country Cool" becomes new slogan for Mountain Dew. Diet Pepsi gets a new logo. Pepsi-Cola acquires Mug Root Beer. Pepsi-Cola sponsors the first Western-produced consumer commercial in the Soviet Union, appearing during the Goodwill Games. PepsiCo Board of Directors visits the People's Republic of China to mark the opening of Pepsi's second bottling plant in China. Frito-Lay introduces Santitas brand restaurant style tortilla chips.

1985 Milestones

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PepsiCo is now the largest company in the beverage industry. The company has revenues of more than $7.5 billion, more than 137,000 employees. Pepsi-Cola products are available in nearly 150 countries and territories around the world. Snack food operations are in 10 international markets. Frito-Lay expands into new headquarters in Plano, Texas. PepsiCo's first line of sweet snacks, Sonrics, is added in Mexico. The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the space shuttle. Pepsi's successful "Entertainment Marketing" strategy is extended, with singers Lionel Richie and Tina Turner and actor Michael J. Fox, among others. Pepsi distributes products in China.

1984 Milestones

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PepsiCo is restructured to focus on its three core businesses: soft drinks, snack foods and restaurants. Transportation and sporting goods businesses are sold. Wayne Calloway becomes president of PepsiCo. Diet Pepsi is reformulated with 100% NutraSweet. Slice and Diet Slice, the first major soft drinks with fruit juice, are introduced. Pepsi-Cola makes advertising history as Michael Jackson and his brothers usher in a new generation of Pepsi-Cola advertising in two of the most eagerly-awaited television commercials featuring music marketing. Pepsi becomes "The Choice of a New Generation." Herman W. Lay Award of Excellence established at Frito-Lay to recognize world-class selling excellence.

1983 Milestones

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The Bottler Hall of Fame is established to recognize the achievement and dedication of international bottlers. "Dew It to It," theme is incorporated to brand Mountain Dew.

1982 Milestones

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Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced. Inauguration of the first Pepsi-Cola operation in China.

1981 Milestones

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PepsiCo passes $7 billion in sales. Tostitos brand crispy round tortilla chips are introduced by Frito-Lay. PepsiCo Fitness Center is completed; making PepsiCo one of the most advanced companies in the area of employee health and fitness. Frito-Lay begins nutritional labeling on a national basis. "Pepsi's got your taste for life!" is the new campaign. PepsiCo and China reach agreement to manufacture soft drinks, with production beginning in 1982. PepsiCo launches PepsiCo Food Systems (PFS), its restaurant supply company. PFS is sold to AmeriServe in 1997. "Give me a Dew" succeeds the slogan "Reach for the Sun, Reach for a Mountain Dew."

1980 Milestones

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PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants. PepsiCo now has 111,000 employees. First presentation of the international Donald M. Kendall Bottler-of-the-Year Award.

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Frito-Lay begins nationwide roll-out of Grandma's brand cookies. Garden designer Russell Page (1906-1985) begins to extend the gardens at PepsiCo. Pepsi is #1 in sales in take-home market.

1979 Milestones

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Opening of PepsiCo Research and Technical Center in Valhalla, N.Y. PepsiCo reaches $5 billion in sales. PepsiCo's international snack food operations continue to grow. It is now larger than Frito-Lay at the time of its merger with Pepsi-Cola. Pepsi's new campaign, "Catch that Pepsi Spirit!" reflects the upbeat attitude of an increasingly positive America. "Hello Sunshine" campaign remains basically intact, theme line is changed to "Reach for the Sun, Reach for Mountain Dew." Pepsi introduces twelve-pack cans.

1978 Milestones

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Taco Bell is acquired. Taco Bell was established in the mid 1960s by Glen Bell. It is spun off along with Pizza Hut and KFC businesses as Tricon Global Restaurants, Inc. in 1997. Later becomes YUM.

1977 Milestone

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PepsiCo acquires Pizza Hut, Inc. Pizza Hut was founded in 1958 by Dan and Frank Carney. It is spun off along with Taco Bell and KFC businesses as Tricon Global Restaurants, Inc. in 1997. PepsiCo passes the $3 billion mark in sales. PepsiCo stock splits three-for-one.

1976 Milestones

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The Pepsi Challenge, introduced in Dallas, Texas in 1975, becomes a national campaign. Around the nation, consumers select Pepsi-Cola as the best tasting cola. PepsiCo adopts Code of Worldwide Business Conduct. Pepsi-Cola becomes the single largest selling soft drink brand sold in U.S. supermarkets. Advertising campaign is "Have a Pepsi day!" "Puppies," becomes one of America's best-loved ads.

1975 Milestones

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PepsiCo has 49,000 employees Pepsi Light, with a distinctive lemon taste, is introduced as an alternative to traditional diet colas. "Hello Sunshine" becomes the slogan for Mountain Dew.

1974 Milestones

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PepsiCo sales pass the $2 billion mark. Pepsi-Cola becomes the first American consumer product to be produced, marketed and sold in the former Soviet Union.

1973 Milestones

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Foods International, later called PepsiCo Foods International (PFI) and subsequently named Frito-Lay International, is established to market snack foods around the world. Individualism flourishes, Pepsi advertising picks up on the movement, plays it back as "Join the Pepsi people, feelin' free." The third Mountain Dew slogan appears "Put A Little Yahoo in Your Life."

1972 Milestones

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Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package graphics from hillbillies to action-oriented scenes. Sales climb and Mountain Dew will become one of the 10 bestselling soft drinks in the United States.

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Don Kendall announces agreement making Pepsi-Cola the first foreign product sold in the then U.S.S.R. PepsiCo is given exclusive rights to import Stolichnaya Russian vodka in the U.S.

1971 Milestones

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PepsiCo Chief Executive Officer Donald M. Kendall assumes the position of chairman of the Board of Directors on the retirement of Herman W. Lay. Lay maintains an active role in the corporation until his death December 6, 1982. Andrall E. Pearson is appointed president of PepsiCo, a position he holds until his retirement in 1984.

1970 Milestones

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PepsiCo sales pass the $1 billion mark. The company has 36,000 employees. PepsiCo moves from New York City to new world headquarters in Purchase, N.Y. The new corporate headquarters feature a building by one of America's foremost architects, Edward Durrell Stone (1902-1978), set on a campus of 144 acres amid an outdoor sculpture garden. Frito-Lay begins a program of expansion. Over the next decade, the company opens, on average, more than one new plant a year. W.C. Fritos is introduced as Frito-Lay's new advertising mascot. Wilson Sporting Goods, a top name in sports equipment, joins PepsiCo. It is divested in 1985. Pepsi introduces the industry's first two-liter bottle. Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic bottles.

1969 Milestones

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Bold, modern Pepsi-Cola packaging using red, white and blue is introduced. "You've got a lot to live, Pepsi's got a lot to give," becomes the advertising theme. Frito-Lay introduces Funyuns brand onion flavored snacks. Mountain Dew changes its slogan to "Get That Barefoot Feelin' Drinkin' Mountain Dew."

1968 Milestones

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North American Van Lines (NAVL), a premier transportation company, joins PepsiCo. NAVL remains a strong contributor to PepsiCo until it is divested in 1984.

1967 Milestones

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Pepsi Generation advertising, "Come Alive! You're in the Pepsi Generation" campaign that named and claimed a whole generation (1963-67), introduces a new theme: "Taste that beats the others cold. Pepsi pours it on!"

1966 Milestones

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Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the U.S. Pepsi enters Japan and Eastern Europe.

1965 Milestones

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PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are:

o o o

Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll tickle your innards."

2008 Milestones

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PepsiCo Foundation announces two major new grants to WaterPartners and Safe Water Network programs to provide access to safe water and sanitation in developing countries PepsiCo Again Named to the Dow Jones Sustainability Index PepsiCo Agrees to Buy Bulgaria's Leading Nuts and Seeds Company PepsiCo Announces Initiatives With the Earth Institute and H2O Africa to Drive Sustainable Water Practices Forbes Names PepsiCo Among Its Best Big Companies PepsiCo India Commissions First Remote Wind Turbine to Generate Renewable, Clean Energy CRO Names PepsiCo to Top 25 100 Best Corporate Citizens 2008 PepsiCo to Buy Russian Juice Leader, Lebedyansky Employees Lead Effort to Make Chicago Plaza First LEED-Certified PepsiCo Headquarters Gatorade Launches Gatorade Tiger with Comprehensive Integrated Marketing Campaign PepsiCo Honored with 2008 Energy Star Partner of the Year Award UK Vitamin Water Brand- V Water Acquired by PepsiCo Quaker Plant in Cedar Rapids Closes and Reopens Facility Due to Flooding to Protect Employees PepsiCo Foodservice and Naked Juice Expand Starbucks Presence Gatorade Sports Science Institute Gathers World's Leading Researchers on Protein Nutrition PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award Wall Street Journal Article Recognizes PepsiCo for Leadership in Employment of People with Different Abilities PepsiCo and Frito-Lay Join SmartWay in Commitment to Reduce Greenhouse Gas Emissions PepsiCo Beats Coke in Race to Launch New Natural Sweetener (Stevia) PepsiCo France Recognized as "Great Place To Work" by Institute Survey PepsiCo Commits to Reducing Acryalmide Levels in Potato Chip Products and Restructured Potato Snacks in California Subway Names PepsiCo "Vendor of the Year" for Sustainability Leadership Tazo Tea Joins Pepsi Lipton Partnership

2007 Milestones

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PepsiCo signs Maria Sharapova for International endorsement of Gatorade and Tropicana Tropicana launches Tropicana Healthy Heart with Omega-3s, the first national orange juice to include omega3s Ruffles unveils new packaging to reflect its switch to 100% pure sunflower oil PepsiCo announces new Diversity & Inclusion Leadership Award inspired by Steve Reinemund Mountain Dew and AMP Energy sponsor the Winter X Games Aquafina launches Aquafina Alive—a low calorie, vitamin-enhanced water beverage Quaker Oats debuts new Quaker Life Chocolate Oat Crunch Cereal Flat Earth Fruit and Vegetable Crisps hit stores nationally Fritos Corn Chips celebrates 75th Anniversary with retro packaging Near East celebrates its 45th Anniversary with a recipe contest Tropicana launches Tropicana Fruit Squeeze, a 20-calorie drink with real Tropicana fruit juice Lay's launches 'Share the Joy' program to help the Make a Wish Foundation raise funds Pepsi-Cola North America launches Diet Pepsi MAX Oh Boy! Oberto brand debuts 100-calorie Jerky Bites in Original Beef and Teriyaki Turkey flavors IZZE Launches IZZE Esque, a low-calorie, nothing artificial beverage in three flavors: Sparkling Mandarin, Sparkling Black Raspberry and Sparkling Limon. Propel unveils new 'Fit Has a Feeling' campaign and New Powder Packets for On-The-Go New Quaker Mini Delights launches offering great taste and portion control in a satisfying serving of mini snack cakes Diet Pepsi Jazz introduces new Caramel Cream flavor Grandma's Cookies offering limited-edition flavors for spring: Iced Lemon and Sugar flavors PepsiCo launches Smart Spot Dance! Initiative with celebrities Mario Lopez and LaChanze to help African American and Hispanic families lead healthier, more active lifestyles Walkers is the first major food brand in the world to display a carbon footprint reduction logo on its packs SoBe Beverages launches SoBe Essential Energy PepsiCo Announces 25% Dividend Increase and Raises Share Repurchase Target; Nooyi Assumes Chairman Title EPA Names PepsiCo 2007 ENERGY STAR(R) Partner of the Year PepsiCo Makes Largest Corporate Purchase of Renewable Energy Certificates Pepsi launches "Design Our Pepsi Can" National Promotion Tropicana unveils New Organic Line – Tropicana Organic QTG facility earns an Energy and Environmental Design (LEED) "Gold" certification from the U.S. Green Building Council PCNA and Frito-Lay launch "Shrek the Third" National Summer Promotion Indra Nooyi receives the Outstanding American by Choice Award PepsiCo makes Fortune magazine's '100 Best MBA Employers' list Diet Pepsi Launches New Look, New Ad Campaign and New Attitude – Diet Pepsi's "More Cola Taste" Pepsi, Diet Pepsi and Mountain Dew topped the 2007 Brand Keys Customer Loyalty Engagement Index which tracks consumers' relationships with brands PepsiCo joins U.S. Climate Action Partnership as part of its commitment to sustainability Lipton introduces Lipton PureLeaf EPA Honors Frito-Lay's Jonesboro facility for its sustainability efforts to conserve energy and resources Cold Stone Creamery and Mountain Dew Join Forces to Introduce Dew Iced Mountain Dew Unveils unique, limited edition aluminum bottles Tostitos introduce Flour Tortilla Chips and two new Dairy Dips Nationwide PepsiCo named a 2007 Working Mother 'Best Company for Multicultural Women' PepsiCo wins two awards –Best Environmental/Wildlife Campaign and Best Cause Marketing Event -- at Fifth Annual Cause Marketing Halo Awards Frito-Lay teams up with the Make-A-Wish Foundation to help children with life-threatening diseases

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Dunkin' Donuts launches SoBe Energy Coolatta Pepsi wins Webby Award for its execution of the "Best Sports Website" PepsiCo and Pepsi Americas, Inc jointly acquire Sandora, a Leading Juice Company in Ukraine PepsiCo earns spot in Black Enterprise Magazine's '40 Best Companies for Diversity' Lay's and Doritos Campaigns win Top PR Awards Doritos 'Crash the Super Bowl' program Wins International Advertising Award at the International Advertising Festival

2006 Milestones

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Quaker Snacks Unveils Breakfast Cookies Doritos unveils new packaging, including an updated logo PepsiCo Launches Pepsi Limon in Peru PepsiCo Completes Acquisition of Stacy's Pita Chip Company Tropicana Now Offering OJ with Benecol PepsiCo Foodservice Partners With Cracker Barrel to Serve Up Fritos-Branded Menu Item PepsiCo Foodservice Pours Two New Account Wins: Famous Dave's of America and Roundtable Pizza Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi Campaign North American Coffee Partnership Launches New Starbucks Beverages, Starbucks Iced Coffee, Starbucks Iced Coffee Light as well as Strawberries and Creme Frappuccino and Starbucks Doubleshot Light PepsiCo India re-launches Mirinda SoBe Launches New SoBe Life Water Cheetos kicks off the biggest marketing campaign in its history with "Undercover Chester," an integrated communications platform that asks consumers to help Chester Cheetah recover the stolen recipe for Cheetos In selected cities cross the United States, Pepsi distributes more than three million free cans of newly reformulated Diet Mountain Dew, marking the largest single-day sampling effort in company history Frito-Lay announces the launch of a new line of snack chips called Lay's Sensations and Tostitos Sensations Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four wholesome grains to one of America's favorite tortilla chips Sam's Club teams with Aquafina to "Return the Warmth" to local communities through a national large-scale recycling program. The 50 communities to collect the most Aquafina bottles and deposit them at designated collection locations receive a $1,000 grant from Sam's Club in addition to an assortment of fleece jackets made from recycled plastic bottle material Lay's Introduces Hot 'n Spicy KC Masterpiece BBQ Potato Chips Grammy award winning artist Mariah Carey writes and records original ringtones for the Pepsi Cool Tones & Motorola Phones promotion. Rice-A-Roni introduces a new line of whole-grain side dishes Pepsi Joins Bipartisan Alliance, Adopts New School Policy to Promote Healthier Lifestyles for Elementary, Middle and High School Students Frito-Lay cuts saturated fat in Lay's, Ruffles by more than 50% with move to NuSun™ Sunflower Oil Pepsi unveils new Dole Sparklers and Sierra Mist Cranberry Splash PepsiCo announces that it will be the official, exclusive food and beverage partner of the highly anticipated Superman Returns film Starbucks and PepsiCo sign a distribution agreement for Ethos Water PepsiCo, the National Hockey League (NHL) and the National Hockey League Players' Association (NHLPA ) sign an exclusive multi-year beverage and snack deal PepsiCo, National Hockey League and National Hockey League Players Association sign multi-year deal, giving PepsiCo exclusive rights in the beverage, sports beverage, bottled water and snack categories. With this deal, Gatorade becomes the official sports drink of NHL

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PepsiCo Mexico celebrates the official launch of the 'Vive Saludable' program illustrating their commitment to promote healthy lifestyles for consumers and employees and together help reduce the risk of nutrition-related health problems, including obesity Diet Pepsi launches Jazz, a new line of zero-calorie colas available in rich flavors like Black Cherry French Vanilla and Strawberries & Cream PepsiCo introduces Ben & Jerry's Milkshakes, a rich, creamy drinkable treat in three classic flavors--Cherry Garcia, Chunky Monkey and Chocolate Fudge Brownie Tropicana debuts Tropicana Pure--a new line of 100% premium juices PepsiCo is added to the Dow Jones Sustainability North America Index (DJSI) Quaker Oats debuts its new Quaker Oatmeal Crunch, warm oatmeal with the crunchy texture of cold cereal Indra Nooyi named Chief Executive Officer of PepsiCo as of October 1, 2006 Frito-Lay debuts action cups Frito-Lay kicks of its nationwide rollout of Lay's with 100% Pure Sunflower Oil Pepsi acquires IZZE beverage company Arby's names Pepsi-Cola as its Food and Beverage Supplier Award winner Golden Corral restaurants and Pepsi announce a multi-year agreement making Pepsi the chain's preferred beverage supplier in all locations Grandma's Cookies releases 2 limited-edition 'fall favorites' flavors—Spiced Molasses and Fall Fudge Chip Cold Stone Creamery announces a multi-year agreement making Pepsi its exclusive beverage supplier Frito-Lay North America signed agreement with the Alliance for a Healthier Generation for a new policy for selling our foods in schools Frito-Lay launches new Baked!Tostitos Scoops! Tortilla chips, with lower calorie and lower fat benefits Pepsi signs 5-year sponsorship renewal with Major League Baseball Properties making Pepsi the "Official Soft Drink of Major League Baseball" PBSG Parkwood and Frito-Lay headquarters associates raise more than $1.8 million dollars in the American Heart Association Walk PepsiCo announced intent to acquire Naked Juice Company Federal Trade Commission clears PepsiCo for Naked Juice Co. purchase PepsiCo announces it will acquire New Zealand snack company Bluebird Foods

2005 Milestones

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Frito-Lay introduces Doritos Black Pepper Jack Diet Sierra Mist becomes Sierra Mist Free. SoBe Launches Sugar-Free No Fear. PepsiCo launches "Smart Spot" symbol in Canada Tropicana Teams With Weight Watchers to Offer Tropicana Light 'n Healthy as Part of 'Points' Program Pepsi Lime and Diet Pepsi Lime Launch Tropicana Twister Soda Launched in April The Fuddruckers restaurant chain signed a 7-year, 5.6 million gallon agreement with Pepsi-Cola North America to serve Pepsi products. Pepsi-Lipton Tea Partnership Announces New Lipton Original Iced Tea and New Lipton Iced Tea; Reformulated Ready-to-Drink Teas Hit Store Shelves Pepsi-Cola North America adds to its portfolio of Dole 100% juices – Ruby Red Grapefruit – as well as a new line of 50% juice beverages called Dole Lights. Gatorade introduces Gatorade Endurance Formula Pepsi-Cola North America announced it will add Splenda® brand sweetener to a newly reformulated Pepsi ONE, creating a full-flavor cola taste with only one calorie. Frito-Lay Brings Wasabi Funyuns to Continental United States Quaker snack bars re-launched with new branding, packaging and advertising PepsiCo Celebrates 40th Anniversary

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PepsiCo International announced the appointment of Pioneer Foods, a leading South African food and beverage company, as its franchisee in the Republic of South Africa. Tropicana has launched 'Tropicana Sensations', a new line of premium fruit juices in Spain PepsiCo launches Quaker Milk Chillers Gatorade Partners with NFL to Educate High School Football Coaches on Proper Hydration During Practice Pepsi-Cola North America Launches Mountain Dew Pitch Black II Quaker Introduces Weight Control Instant Oatmeal Diet Pepsi Presents the NFL Rookie Challenge -- Winner Receives Superbowl Tickets for Life Tropicana Launches All Fruit Smoothies Pepsi is chosen as the exclusive beverage provider for Soup Kitchen International, Inc. and The Original SoupMan PepsiCo Donates $2 Million to Pakistan Earthquake Victims PepsiCo Launches New Samba Drink in Australia Pepsi-Cola North America Launches MDX Energy Soda Pepsi Partners with Harvey's, Swiss Chalet and Milestone's Restaurants PepsiCo "Twistos" Croutons Launched in Russia Gatorade Launches Propel Calcium - First Calcium-Enriched Fitness Water Frito-Lay Launches Quaker Oats in India Walkers to Launch New Beef Jerky Product in the U.K. under its Nobby's brand PepsiCo Health & Wellness Launches Everyday Smart Moves Magazine PepsiCo, Cindy Crawford and KaBOOM Build First Smart Spot Playground in Washington, D.C. Pepsi Latte Launches in Thailand Tropicana FruitWise Campaign Launches Mountain Dew Sponsored ESPN X Games Debut in the Middle East PepsiCo Launches Pepsi Cappuccino in Romania Quaker Launches Vanilla Yogurt Crunch Cereal Britvic Launches Pepsi Max Cino

2004 Milestones

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PepsiCo Launches 'HealthRoads' Wellness Benefit for Associates and Their Families PepsiCo's new "Smart Spot" program is featured as an example of the food industry's focus on health and wellness in today's edition of USA Today. Frito-Lay Launches Doritos and Cheetos Halloween Treat Multi-Sacks Frito-Lay's 24-count Multi-Sack variety pack won the Institute of Packaging Professional's (IoPP) Integrity Award, one of the industry's top awards, at this year's AmeriStar Packaging Awards. Frito-Lay Introduces Doritos Black Pepper Jack Diet Sierra Mist Becomes Sierra Mist Free Pepsi Bottling Group (PBG) – PepsiCo's biggest bottler bought Phil Gaudreault et Fils Ltee, a Quebec-based Pepsi bottler. SoBe Launches Sugar-Free No Fear PepsiCo Launches 'Smart Spot' Symbol in Canada Frito-Lay launches Doritos Edge and Tostitos Edge -- line extensions with 60% fewer carbohydrates. Gatorade introduces Gatorade Endurance Hydration Formula-- a specialized sports drink to meet the needs of endurance athletes. Frito-Lay introduces Quaker Chewy Cookies & Milk granola bars and Quaker Fruit & Oatmeal cereal bars. Frito-Lay Canada eliminates trans fats from chips and launches a line of All Natural and Organic products. Pepsi-Cola to launch Pepsi Edge, the first full-flavored cola with 50% less sugar, carbohydrates and calories than regular cola. PepsiCo publishes first Corporate Citizenship report in its 2003 Annual Report.

2003 Milestones

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Pepsi-Cola launches Sierra Mist nationally. PepsiCo launches "Get Active/Stay Active" program. Quaker Chewy introduces Quaker Chewy Wholesome Favorites and Quaker Chewy Trail Mix. Gatorade unveils In-Car Hydration System for NASCAR Drivers. SoBe sponsors U.S. Open Snowboarding Championships. Pepsi announces plans to launch Mt. Dew LiveWire, an orange drink, this summer. Pepsi-Cola signs an exclusive four-year sponsorship deal with the Canadian Hockey Association, making Pepsi the official soft drink. Pepsi announces four-year sponsorship agreement with the UK Football Association. Frito-Lay announces new line of snacks made with organic ingredients called "Natural Snacks." "Pepsi Stuff" Campaign kicks-off in Canada. Frito-Lay finds winner of "Would You Name Your Baby Horton" search celebrating the "re-birth" of its Ruffles brand. The child will receive $50,000 college tuition fund from Frito-Lay. PepsiCo creates PepsiCo International, the business that will unite all international snack, beverage and food units in an effort to drive faster growth and improved profitability around the world. PepsiCo releases a Spanish-language "Power of One" television commercial starring Puerto Rican singer and actor, Ponce, and Velasquez, Mexican-American singer and actress. Pepsi–Cola trademark turns 100 years old. Quaker rolls out new Oatmeal Breakfast Squares. Pepsi Vanilla is launched in the United States. Tropicana introduces Tropicana 100% Juice Blends. Pepsi unveils a new tagline: "Pepsi. It's the Cola." It is the brand's first major campaign shift since 1999 and highlights how Pepsi goes with everything from food to fun.

2002 Milestones

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Frito-Lay introduces Go Snacks, canisters that truly go anywhere. Gatorade introduces new Gatorade ICE in three flavors- Orange, Lime and Strawberry. Tropicana Pure Premium announces sponsorship of Disney's award-winning show The Lion King. Tropicana® Pure Premium® introduces 14-oz. single-serve resealable bottle you can take with you for the onthe-go- consumers. Diet Pepsi has a new look. "Mr. Green," a green-tinted carbonated soft drink with caffeine and ginseng, is launched under SoBe's New Age beverage line in April. The North American Coffee Partnership (NACP), a joint venture between Starbucks Coffee Company and PepsiCo, Inc. introduces Starbucks Doubleshot. Quaker Oatmeal this year celebrates the 125th anniversary of the nation's number-one-choice for a nutritious, hot breakfast cereal. Gatorade turns 35. It was created in 1960s to help performance of Florida Gators football team and now is the leading sport drink.

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New line of Gatorade brand drinks, Xtremo, comes in three new flavors - Mango, Tropical and Citrico. PepsiCo and Kenneth Cooper, M.D., M.P.H., of Cooper Concepts Inc. (CCI), a division of the renowned Cooper Aerobics Center in Dallas, TX enter into an agreement to promote nutrition, fitness and wellness. Dole Beverages enters chilled orange juice business as it launches five new flavors and packages. Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target active, healthconscious adults in four lightly sweetened varieties including B-Power, Calcium+, Daily C and Multi-V in 20-oz. bottles. PepsiCo reorganizes to unite all North American beverage operations, including Pepsi-Cola, Tropicana and Gatorade, into one new division -- PepsiCo Beverages and Foods North America. PepsiCo announces $5 billion share repurchase program. Starbucks unveils white vanilla and coconut crème Frappuccino. Tropicana has new ad campaign for Tropicana Pure Premium Healthy Kids - TV spots designed to capture the essence of children's needs. Galaxy Nutritional Foods launches Ultra Smoothies made with Tropicana juices. PepsiCo publishes Health and Wellness Philosophy. (on pepsico.com) Frito-Lay announces it is eliminating trans fats from Doritos, Tostitos, and Cheetos. Frito-Lay announces plans to introduce Lay's Reduced Fat chips and Cheetos Reduced Fat snacks. Quaker's Nutrition for Women team has developed a Food Guide Pyramid for Women as well as an online nutritional assessment. Brand Pepsi has a new look. Beyonce Knowles has joined the Pepsi family and will collaborate with Pepsi two new TV commercials, radio, and Internet ads. PepsiCo introduces Marathon Kids, a program that encourages kids and their families to be more physically active. The program debuts in Dallas, TX. Tropicana introduces a new campaign with the tag line "So pure. So alive. Tropicana Pure Premium." Tropicana Pure Premium and Quaker Oatmeal launch the Heart and Soul Mates Support Network featuring nutrition tips, motivational messages and coaching advice, to help consumers turn healthy habits into life-long changes.

2001 Milestones

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Pepsi-Cola Company launches Dole single-serve juices in vending machines, coolers and other retail outlets throughout the United States. Pepsi-Cola's flagship brand will have new tagline, "The Joy of Pepsi." Tropicana celebrates a company milestone - 300 billion fresh oranges squeezed since the company began making country's first ever mass distributed, not-from-concentrate juice in 1947. Tropicana introduces Smoothies. A natural juice-based product, smoothies combine fruit juices and non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and convenience. Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide. It is Mountain Dew's first line extension since the introduction of Diet Mountain Dew in 1988. May 2 -The Board of Directors of PepsiCo, Inc. elected Steven S Reinemund chairman of the board and chief executive officer, succeeding Roger Enrico who will become vice chairman. The board also elected Indra K. Nooyi as a director and gave her the additional title of president of PepsiCo in addition to CFO. Frito-Lay introduces Lay's Bistro Gourmet potato chips. Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new cola with lemon are entering retail outlets in selected U.S. markets. SLAM, the orange brand Mirinda, is launched in Italy. PepsiCo acquires Tasali Foods, Saudi Arabia's leading snack company. On August 2, PepsiCo merges with The Quaker Oats Company, creating a $25 billion food and beverage company focused on the rapidly growing consumer demand for convenience. Tropicana Pure Premium Low Acid orange juice makes official debut at Tropicana 400.

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Diet Sierra Mist is Introduced.

2000 Milestones

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Pepsi-Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes Pepsi One and Diet Coke as well as regular cola. Pepsi-Cola teams up with Yahoo Inc., the biggest web navigation company, in a multimedia marketing campaign aimed at teens and young adults. Tropicana, in a joint venture with Galaxy Foods Co., will introduce an icy smoothie soy milk-and-fruit drink, made with juice, fruit puree along with soymilk and soy protein. Aquafina brand bottled water becomes the best-selling brand of single-serve bottled water in US retail channels. PepsiStuff.com, a web site for merchandise, discounts and digital music files from biggest names in movies, music, video games, apparel and sports is launched in joint promotion with Yahoo. Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda. The North American Coffee Partnership launched Caramel-flavored bottled Frappuccino Coffee Drink - the sixth flavor addition to its popular line of ready-to-drink coffee. PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage Company, whose highly innovative SoBe brand has made it one of industry's most successful companies. PepsiCo, Inc. and The Quaker Oats Company reached an agreement to merge. PepsiCo completes the acquisition of a majority stake in South Beach Beverage Co. PepsiCo sales are $20 billion and the company has 125,000 employees at year end. PepsiCo launches Diversity@work, http://www.pepsico.com/diversity website. Print1999 Milestones

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Tropicana introduces two new calcium-fortified Pure Premium juices: Pure Premium Grovestand Calcium and Pure Premium Ruby Red Grapefruit Calcium. Pepsi launches "The Joy of Cola" advertising campaign. In March, The Pepsi Bottling Group, the world's largest Pepsi bottler, begins trading on the New York Stock Exchange. It is listed under the symbol PBG. The $2.3 billion public offering is among the biggest initial public offerings in stock market history. Steve Reinemund named president of PepsiCo. Hallie Eisenberg "Joy of Cola" commercials named #6 of "Fifty Greatest TV commercials of all time," by TV Guide. Lipton introduces Iced Tea Green Tea with Honey and Diet Peach. PepsiCo and Suntory Limited signed an agreement to create a joint venture linking bottling networks in North Carolina and New York. The new company, Pepsi Bottling Ventures, will be the third largest bottler in the Pepsi system. Tropicana juices are entering the huge India market for the first time. Spearheaded by Tropicana Asia Pacific, orange juice will appear in the New Delhi and Bangalore markets. Frito-Lay introduces a new corporate logo. Frito-Lay signs agreement with Oberto Sausage to be the exclusive distributor of the natural-style jerky.

1998 Milestones

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Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour. PepsiCo Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of PepsiCo employees. Pepsi introduces new look called the "Globe" which prominently features a 3-dimensional Globe against a blue ice backdrop. Pepsi-Cola announces breakthrough product: Pepsi One, great-tasting, one-calorie cola is first in United States with newly FDA approved sweetener Sunett®. Former Chairman and CEO Wayne Calloway dies on July 9th. He joined PepsiCo in 1967 becoming its Chairman and CEO in 1986. PepsiCo acquires Tropicana Products from Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo. Tropicana was founded in 1947 by Anthony Rossi. Its major brand is Tropicana Pure Premium Juices. The Frito-Lay Company purchases Smith's Snackfood Company in Australia from United Biscuits Holdings, Inc. (Purchase completed on Aug. 26.) In November the PepsiCo Board of Directors authorizes the company to convert a significant portion of its $7 billion company-owned bottling operations, The Pepsi Bottling Group (PBG) into public ownership. PepsiCo signs groundbreaking 10-year agreement with the YMCA of the USA through which both Pepsi-Cola and Frito-Lay will develop national and local marketing programs to support the organization's many charitable efforts. Frito-Lay becomes the snack chip leader in South and Central America as it enters a joint venture with Empreseas Polar SA of Venezuela. Frito-Lay acquires Barcel, Chile's second-largest snack company. Frito-Lay acquires an expanded state in Tasty Foods Egypt. Pepsi and Frito-Lay media buying is consolidated. PepsiCo products contribute more than any other packaged goods company to the sales growth in U.S. supermarkets, mass merchandisers and chain drug stores. Tropicana Products, Inc. acquires Alimentos del Valle S.A., one of Spain's leading chilled juice and soup companies. Print1997 Milestones

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Pepsi-Cola introduces new advertising campaign with the theme "Generation Next." Pepsi-Cola North American bottling operations become a separate unit called The Pepsi-Cola Bottling Co. National roll-out of Aquafina bottled water. Frito-Lay announces plans to buy the 104-year-old snack, Cracker Jack, a candy-coated mix of popcorn and peanuts from Borden Foods Corp. Pepsi-Cola kicks off the celebration of its 1998 100th Anniversary with first worldwide bottlers conference, held in Hawaii. The event is held during the same time as first bottler's conference. Frito-Lay introduces Doritos 3D's Tortilla Chips, a triangle-shaped chip.

Print1996 Milestones

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Pepsi-Cola launches Pepsi World at www.pepsiworld.com "Pepsi Stuff" unveiled. Consumers save points for merchandise. PepsiCo stocks splits two-for-one. Pepsi-Cola domestic and international operations combined into Pepsi-Cola Company. International and domestic snack food operations combined into one business unit called Frito-Lay Company. Mountain Dew launches a massive beeper network called "The Mountain Dew Extreme Network." PepsiCo, Inc. and Lucasfilm Ltd. announce the largest promotional alliance in entertainment history, linking existing and future Star Wars series with PepsiCo beverage, snack foods and restaurant brands worldwide. Pepsi-Cola and MTV establish a partnership to develop international programming, cross promotions, marketing tie-ins and special events. Filming of the world's first commercial in space. Cosmonauts shoot a large blue Pepsi can in orbit outside the MIR Space station. International retail sales of Doritos brand tortilla chips exceed $250 million, global expansion nears 20 countries. PepsiCo announces plans to spin off its restaurant businesses as an independent publicly-traded company, sell its food distribution company and focus on its core beverage and snack food businesses. The spin-off is completed October 6, 1997. Shareholders receive one share in the new restaurant company, Tricon Global Restaurants, Inc., for every 10 shares they hold in PepsiCo, Inc. PepsiCo is now a $20 billion company with approximately 140,000 employees worldwide. Pepsi-Cola is top ad scorer in Super Bowl. Mountain Dew sponsors the Grammy Awards. Theme line is "Been There, Done That, Tried That." The Pepsi Lipton Tea Partnership debuts new ad campaign emphasizing "There's only one Original." Pepsi-Cola introduces Smooth Moos Smoothies, a line of low-fat dairy shakes. Roger Enrico succeeds Wayne Calloway as chief executive officer and chairman of the Board of Directors.

1995 Milestones

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Pepsi-Cola introduces "Nothing else is a Pepsi" theme line. Pepsi-Cola is top ad scorer in Super Bowl. Mountain Dew sponsors the Grammy Awards. Theme line is "Been There, Done That, Tried That." The Pepsi Lipton Tea Partnership debuts new ad campaign emphasizing "There's only one Original." Pepsi-Cola introduces Smooth Moos Smoothies, a line of low-fat dairy shakes. 7Up International launches 7UP Ice Cola, a new clear cola. Frito-Lay aggressively expands its low/no-fat snack segment. Baked Lays is introduced. Frito-Lay tests Baked Tostitos, Rold Gold Fat Free Pretzels, Ruffles Reduced Fat Potato Chips and Tostitos fat-free salsas and black bean dip brands. Campaign line is "Taste the fun, not the fat." PepsiCo will introduce Lay's brand potato chips in 20 markets throughout the world. PepsiCo is on-line at http://www.pepsico.com

1994 Milestones

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Pepsi-Cola is first major soft drink maker to begin producing and distributing its product in Vietnam. Pepsi-Cola launches its sports drink All Sport. It is sold in 2001. Pepsi-Cola International acquires Indian company, its first big bottling plant in Bombay. Doritos is introduced to the United Kingdom, marking the creation of a new "global brand." Frito-Lay and K.C. Masterpiece Original Brand Barbecue Sauce launches Lay's Masterpiece brand Barbecue Flavor Potato Chips, marking the first time Lay's has entered into a co-branding agreement. PepsiCo and Starbucks form the North American Coffee Partnership to jointly develop ready-to-drink coffee beverages. Pepsi-Cola licenses the Citrus Hill trademark from The Procter & Gamble Co. to launch a line of fountain juices and drinks. China gets cheese-less Cheetos, the first time a major snack-food brand will be produced in China for Chinese tastes. Reba McEntire becomes first celebrity to appear nationally on a Frito-Lay package. Frito-Lay nationally launches new baked Rold Gold Fat Free Thins Pretzels, the first fat free reduced sodium pretzel introduced by the company. Wake Forest University names its School of Business and Accountancy in honor of Wayne Calloway. PepsiCo sales reach $30.4 billion. There are 470,000 employees worldwide, making PepsiCo the third largest employer.

1993 Milestones

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Frito-Lay launches new Doritos brand Tortilla Thins. Within five months of launch, Tortilla Thins breaks into the ranks of the 10 largest-selling snack chips in the U.S. After a 27-year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in Times Square. Both PepsiCo beverages and snack food operating profits pass the $1 billion mark. Pepsi-Cola introduces freshness dating. Frito-Lay introduces Baked Tostitos brand Tortilla Chips. Pepsi introduces "The Cube," an innovative 24-can multipack, that satisfies growing consumer demand for convenient large size soft drink packaging. PepsiCo acquires East Side Mario's Restaurants Inc. It sells the 40 units in 1997. PepsiCo acquires D'Angelo Sandwich Shops chain, which is sold in 1997. Pepsi-Cola International introduces Pepsi Max, a soft drink with unique blend of sweeteners that delivers maximum cola taste in a no-sugar product. Frito-Lay nationally launches Wavy Lay's Original and Au Gratin flavors. Pepsi-Cola introduces Aquafina bottled water into test market.

1992 Milestones

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PepsiCo purchases an equity interest in California Pizza Kitchen. It is sold in 1997. Pepsi-Cola introduces new "Gotta Have It" advertising theme and launches the "Gotta Have It" card. Frito-Lay and General Mills agree to merge snack food businesses in Europe. Frito-Lay introduces reformulation of Doritos brand Nacho Cheesier flavored tortilla chips. Frito-Lay presents network Lay's/Ruffles advertising -- the first in 10 years. Frito-Lay enlists George Foreman for Doritos advertising. Pepsi introduces new slogan "Be Young - Have Fun - Drink Pepsi." Pepsi-Cola begins distribution of Lipton's line of ready-to-drink teas nationwide.

1991 Milestones

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PepsiCo acquires an equity interest in Wedel SA, the leading manufacturer of chocolate and confectionery in Poland Snacks now include operations in 23 countries. Pepsi-Cola introduces a new logo, its eighth in 93 years. Advertising features rap singer MC Hammer. Pepsi-Cola forms joint venture with Thomas J. Lipton Co. to develop and market tea-based drinks. Frito-Lay launches Sunchips, its first multigrain snack. Frito-Lay introduces Cheetos Paws. Frito-Lay introduces Tostitos brand Restaurant-Style tortilla chips. Ray Charles teams up with the Uh-Huh Girls. The slogan for Diet Pepsi is modified to "You Got The Right One Baby, Uh-Huh!" PepsiCo purchases an equity position in Carts of Colorado, Inc., the leading manufacturer and marketer of mobile merchandising equipment. It is sold in 1995.

1990 Milestones

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PepsiCo stock splits three-for-one. PepsiCo acquires a controlling interest in Gamesa, Mexico's largest cookie company. Frito-Lay advertising for Doritos brand tortilla chips features talk celebrity Jay Leno. PepsiCo signs the largest commercial trade agreement in history with the Soviet Union. PepsiCo profits exceed $1 billion for the first time.

1989 Milestones

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PepsiCo acquires Walkers Crisps and Smith Crisps, two of the United Kingdom's leading snack food companies. PepsiCo acquires Smartfood ready-to-eat popcorn business. PepsiCo enters top 25 of Fortune 500 ranking with sales of $15.4 billion, it is number 23. The company has more than 300,000 employees.

1988 Milestones

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Pepsi-Cola International enters a landmark joint venture agreement in India. Renewed accord with the Soviet Union extends PepsiCo trade relationships. Hostess Frito-Lay, a major new partnership in Canada, is formed with Hostess Foods in Canada. "Chase," a four-part Pepsi ad featuring Michael Jackson in his first-ever episodic commercial, airs during the Grammy awards and becomes the most-watched commercial in advertising history. Pepsi-Cola runs first paid advertisement on Soviet TV during "Pozner in America," a joint US-Soviet production. Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It is the world's largest selling snack chips brand. PepsiCo introduces SharePower Stock Option program for all employees, becoming the first large corporation to award stock options to virtually all full-time employees.

1987 Milestones

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"Mustang," a Diet Pepsi commercial, becomes the first ad ever to appear in a home video cassette. The cassette, "Top Gun," becomes the largest-selling video ever. Pepsi sponsors tours of major music stars, including Miami Sound Machine, David Bowie and Tina Turner. Frito-Lay pioneers the use of hand-held computers for marketing.

1986 Milestones

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Wayne Calloway becomes chairman of the Board of Directors and chief executive officer in May when Donald M. Kendall retires. The corporation is reorganized and decentralized. Beverage operations are combined under PepsiCo Worldwide Beverages; snack food operations are combined under PepsiCo Worldwide Foods. Shareholders approve reincorporation of PepsiCo in North Carolina. PepsiCo stock splits three-for-one. PepsiCo purchases Kentucky Fried Chicken, the leader in the quick service chicken market. KFC was founded by Colonel Harland Sanders. Colonel Sanders began franchising the company in 1952. KFC is spun off along with Pizza Hut and Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997. PepsiCo purchases 7Up International, the third largest franchise soft drink operation outside the United States. PepsiCo passes $10 billion in sales. PepsiCo is listed on the Tokyo stock exchange. Chester Cheetah makes his prime-time television debut for Frito-Lay with a fully animated commercial for Cheetos cheese flavored snacks. "Dew it Country Cool" becomes new slogan for Mountain Dew. Diet Pepsi gets a new logo. Pepsi-Cola acquires Mug Root Beer. Pepsi-Cola sponsors the first Western-produced consumer commercial in the Soviet Union, appearing during the Goodwill Games. PepsiCo Board of Directors visits the People's Republic of China to mark the opening of Pepsi's second bottling plant in China. Frito-Lay introduces Santitas brand restaurant style tortilla chips.

1985 Milestones

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PepsiCo is now the largest company in the beverage industry. The company has revenues of more than $7.5 billion, more than 137,000 employees. Pepsi-Cola products are available in nearly 150 countries and territories around the world. Snack food operations are in 10 international markets. Frito-Lay expands into new headquarters in Plano, Texas. PepsiCo's first line of sweet snacks, Sonrics, is added in Mexico. The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the space shuttle. Pepsi's successful "Entertainment Marketing" strategy is extended, with singers Lionel Richie and Tina Turner and actor Michael J. Fox, among others. Pepsi distributes products in China.

1984 Milestones

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PepsiCo is restructured to focus on its three core businesses: soft drinks, snack foods and restaurants. Transportation and sporting goods businesses are sold. Wayne Calloway becomes president of PepsiCo. Diet Pepsi is reformulated with 100% NutraSweet. Slice and Diet Slice, the first major soft drinks with fruit juice, are introduced. Pepsi-Cola makes advertising history as Michael Jackson and his brothers usher in a new generation of Pepsi-Cola advertising in two of the most eagerly-awaited television commercials featuring music marketing. Pepsi becomes "The Choice of a New Generation." Herman W. Lay Award of Excellence established at Frito-Lay to recognize world-class selling excellence.

1983 Milestones

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The Bottler Hall of Fame is established to recognize the achievement and dedication of international bottlers. "Dew It to It," theme is incorporated to brand Mountain Dew.

1982 Milestones

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Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced. Inauguration of the first Pepsi-Cola operation in China.

1981 Milestones

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PepsiCo passes $7 billion in sales. Tostitos brand crispy round tortilla chips are introduced by Frito-Lay.

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PepsiCo Fitness Center is completed; making PepsiCo one of the most advanced companies in the area of employee health and fitness. Frito-Lay begins nutritional labeling on a national basis. "Pepsi's got your taste for life!" is the new campaign. PepsiCo and China reach agreement to manufacture soft drinks, with production beginning in 1982. PepsiCo launches PepsiCo Food Systems (PFS), its restaurant supply company. PFS is sold to AmeriServe in 1997. "Give me a Dew" succeeds the slogan "Reach for the Sun, Reach for a Mountain Dew."

1980 Milestones

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PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants. PepsiCo now has 111,000 employees. First presentation of the international Donald M. Kendall Bottler-of-the-Year Award. Frito-Lay begins nationwide roll-out of Grandma's brand cookies. Garden designer Russell Page (1906-1985) begins to extend the gardens at PepsiCo. Pepsi is #1 in sales in take-home market.

1979 Milestones

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Opening of PepsiCo Research and Technical Center in Valhalla, N.Y. PepsiCo reaches $5 billion in sales. PepsiCo's international snack food operations continue to grow. It is now larger than Frito-Lay at the time of its merger with Pepsi-Cola. Pepsi's new campaign, "Catch that Pepsi Spirit!" reflects the upbeat attitude of an increasingly positive America. "Hello Sunshine" campaign remains basically intact, theme line is changed to "Reach for the Sun, Reach for Mountain Dew." Pepsi introduces twelve-pack cans.

1978 Milestones

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Taco Bell is acquired. Taco Bell was established in the mid 1960s by Glen Bell. It is spun off along with Pizza Hut and KFC businesses as Tricon Global Restaurants, Inc. in 1997. Later becomes YUM.

1977 Milestone

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PepsiCo acquires Pizza Hut, Inc. Pizza Hut was founded in 1958 by Dan and Frank Carney. It is spun off along with Taco Bell and KFC businesses as Tricon Global Restaurants, Inc. in 1997. PepsiCo passes the $3 billion mark in sales. PepsiCo stock splits three-for-one.

1976 Milestones

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The Pepsi Challenge, introduced in Dallas, Texas in 1975, becomes a national campaign. Around the nation, consumers select Pepsi-Cola as the best tasting cola. PepsiCo adopts Code of Worldwide Business Conduct. Pepsi-Cola becomes the single largest selling soft drink brand sold in U.S. supermarkets. Advertising campaign is "Have a Pepsi day!" "Puppies," becomes one of America's best-loved ads.

1975 Milestones

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PepsiCo has 49,000 employees Pepsi Light, with a distinctive lemon taste, is introduced as an alternative to traditional diet colas. "Hello Sunshine" becomes the slogan for Mountain Dew.

1974 Milestones

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PepsiCo sales pass the $2 billion mark. Pepsi-Cola becomes the first American consumer product to be produced, marketed and sold in the former Soviet Union.

1973 Milestones

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Foods International, later called PepsiCo Foods International (PFI) and subsequently named Frito-Lay International, is established to market snack foods around the world. Individualism flourishes, Pepsi advertising picks up on the movement, plays it back as "Join the Pepsi people, feelin' free." The third Mountain Dew slogan appears "Put A Little Yahoo in Your Life."

1972 Milestones

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Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package graphics from hillbillies to action-oriented scenes. Sales climb and Mountain Dew will become one of the 10 best-selling soft drinks in the United States. Don Kendall announces agreement making Pepsi-Cola the first foreign product sold in the then U.S.S.R. PepsiCo is given exclusive rights to import Stolichnaya Russian vodka in the U.S.

1971 Milestones

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PepsiCo Chief Executive Officer Donald M. Kendall assumes the position of chairman of the Board of Directors on the retirement of Herman W. Lay. Lay maintains an active role in the corporation until his death December 6, 1982. Andrall E. Pearson is appointed president of PepsiCo, a position he holds until his retirement in 1984.

1970 Milestones

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PepsiCo sales pass the $1 billion mark. The company has 36,000 employees. PepsiCo moves from New York City to new world headquarters in Purchase, N.Y. The new corporate headquarters feature a building by one of America's foremost architects, Edward Durrell Stone (1902-1978), set on a campus of 144 acres amid an outdoor sculpture garden. Frito-Lay begins a program of expansion. Over the next decade, the company opens, on average, more than one new plant a year. W.C. Fritos is introduced as Frito-Lay's new advertising mascot. Wilson Sporting Goods, a top name in sports equipment, joins PepsiCo. It is divested in 1985. Pepsi introduces the industry's first two-liter bottle. Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic bottles.

1969 Milestones

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Bold, modern Pepsi-Cola packaging using red, white and blue is introduced. "You've got a lot to live, Pepsi's got a lot to give," becomes the advertising theme. Frito-Lay introduces Funyuns brand onion flavored snacks. Mountain Dew changes its slogan to "Get That Barefoot Feelin' Drinkin' Mountain Dew."

1968 Milestones

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North American Van Lines (NAVL), a premier transportation company, joins PepsiCo. NAVL remains a strong contributor to PepsiCo until it is divested in 1984.

1967 Milestones

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Pepsi Generation advertising, "Come Alive! You're in the Pepsi Generation" campaign that named and claimed a whole generation (1963-67), introduces a new theme: "Taste that beats the others cold. Pepsi pours it on!"

1966 Milestones

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Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the U.S. Pepsi enters Japan and Eastern Europe.

1965 Milestones

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PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: o Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). o Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). o Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll tickle your innards."