PepsiCo, Inc. operates worldwide beverage, snack, and food businesses. The Company manufactures or uses contract manufacturers, markets, and sells a variety of grain-based snacks, carbonated and non-carbonated beverages, and foods in countries throughout the world.
PepsiCo’s soft drink brands include Pepsi, Mountain Dew, Tropicana, Gatorade, and Aquafina water. The company also owns Frito-Lay, the world’s #1 snack maker with offerings such as Lay’s, Ruffles, Doritos, and Cheetos. The Quaker Foods unit makes breakfast cereals (Quaker oatmeal, Life), Rice-A-Roni rice, and Near East side dishes. Pepsi products are available in 200-plus countries. The company operates its own bottling plants and distribution facilities.
PepsiCo’s success is founded upon a broad portfolio of mega brands, each of which generates more than $1 billion in annual sales. Business is supported by nearly 700 manufacturing facilities worldwide.
Operations are organized into six business units: Frito-Lay North America (FLNA); Quaker Foods North America (QFNA); North America Beverages (NAB); Latin America; Europe Sub-Saharan Africa (ESSA); and sia, Middle East and North Africa (AMENA).
Brands also include Tropicana Pure Premium, Mist Twst, and Mug. It also makes ready-to-drink tea and coffee products in conjunction with Unilever and Starbucks. It also has manufacturing licenses from Dr Pepper Snapple Group for drink brands Dr Pepper, Crush, and Schweppes; and from Dole Food for Ocean Spray cranberry juice.
FLNA brings in about 25% of total revenue and makes, markets, distributes, and sells branded snack foods. Its brands include Lay’s, Doritos, Cheets, Tostitos, Fritos, Ruffles, and Santitas, which it sells to independent distributors and retailers. In a joint venture with Strauss Group, it makes and sells Sabra dips and spreads.
The QFNA segment accounts for around 5% of sales and consists of the manufacture and distribution of cereals, rice, pasta, and other branded products. Products include Quaker-branded oatmeal, grits, rice cakes, granola, oat squares, as well as Quaker Chewy granola bars. It also makes and sells Aunt Jemima mixes and syrups, Life cereal, and Rice-A-Roni side dishes.
The ESSA segment brings in more than 15% of sales and consists of the manufacture and sale of its soft drink and snack brands in Europe and Sub-Saharan Africa. Additional activities include the marketing and distribution of dairy products including Chudo, Agusha, and Domik v Derevne.
Latin America and AMENA both account for around 10% of sales and make, market, and distribute PepsiCo’s snack foods and beverages in the region. Region-specific brands include Toddy, Manzanita Sol, H2oh! (Latin America) and Kurkure, Chipsys, and Crunchy (AMENA).
PepsiCo’s customers include wholesale distributors, grocery and convenience stores, mass merchandisers, membership stores, authorized independent bottlers, and food service distributors, including hotels and restaurants. The company’s snacks, beverages, and other products are brought to market through direct-store-delivery (DSD), customer warehouse, and distributor networks. Wal-Mart is its largest customer, accounting for 13% of its 2015 sales; the retail giant accounts for about 20% of PepsiCo’s North American business.
PepsiCo’s top five retail customers account for more than 30% of the company’s net revenue in North America.