PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc., PepsiCo has since expanded from its namesake product Pepsi Cola to an immensely diversified range of food and beverage brands. The largest and most recent acquisition was Pioneer Foods in 2020 for US$1.7 billion[2] and prior to it was buying the Quaker Oats Company in 2001, which added the Gatorade brand to the Pepsi portfolio and Tropicana Products in 1998. Pepsi lost a powerful marketing tool in 1992, when Michael Jackson was accused of child molestation. Although the case was settled out of court, Pepsi dropped its contract with the entertainer.
- The company’s expansion beyond the soft drink market began in 1965 when Kendall met Herman Lay, the owner of Frito-Lay, at a grocer’s convention.
- In November 2014, the firm’s president Zein Abdalla announced he would be stepping down from his position at the firm by the end of 2014.[103] In 2017, Ramon Laguarta became the president and became its CEO in 2018.
- Doc Bradham, like countless other entrepreneurs across the United States, was trying to create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every state of the union.
- After taking over leadership of PepsiCo, Enrico quickly faced major problems in the overseas beverages operations, including big losses that were posted by its large Latin American bottler and the defection of its Venezuelan partner to Coca-Cola.
Kendall’s ad agency spared no expense in heralding Pepsi as ‘The Choice of a New Generation,’ using the talents of superstar Michael Jackson, singer Lionel Richie, and the Puerto Rican teenage group Menudo. Michael Jackson’s ads were smash hits and enjoyed the highest exposure of any American television commercial to date. The company’s high profile and powerful presence in all of the soft drink markets–direct results of Kendall’s strategies–helped it to weather the somewhat uncertain economic situation of the time.
He launched an extensive advertising campaign with the slogan ‘Be Sociable, Have a Pepsi.’ The new television medium provided a perfect forum; Pepsi advertisements presented young Americans drinking ‘The Light Refreshment’ and having fun. In addition, FLNA, through a joint venture with Strauss Group, makes, markets, distributes and sells Sabra refrigerated dips and spreads. Again following the successful methods of the Coca-Cola Company, Bradham began to establish a network of bottling franchises. Entrepreneurs anxious to enter the increasingly popular soft drink business set themselves up as bottlers and contracted with Bradham to buy his syrup and sell nothing but Pepsi. Bradham’s first two bottling franchises, both in North Carolina, commenced operation in 1905. By 1907, Pepsi-Cola had signed agreements with 40 bottlers; over the next three years, the number grew to 250 and annual production of the syrup exceeded one million gallons.
He served as chairman of the board for the newly formed PepsiCo and then chairman of the executive committee before his retirement in 1980. In November 2014, the firm’s president Zein Abdalla announced he would be stepping down from his position at the firm by the end of 2014.[103] In 2017, Ramon Laguarta became the president and became its CEO in 2018.
Tropicana launches Tropicana Essentials Probiotics in the U.S., a new 100-percent juice with probiotics. PepsiCo receives Stockholm Industry Water Award in recognition of the company’s innovative and outstanding water stewardship initiatives. Indra Nooyi named chairman and chief executive officer of PepsiCo, succeeding Steve S. Reinemund. PepsiCo and Starbucks https://1investing.in/ form the North American Coffee Partnership to jointly develop ready-to-drink coffee beverages. The launch of TOSTITOS® crispy round tortilla chips leads to one of the most successful new product introductions in Frito-Lay history. PepsiCo CEO Donald M. Kendall assumes position of chairman of the board of directors upon the retirement of Herman W. Lay.
PepsiCo was now focused exclusively on the less capital-intensive businesses of beverages and snack foods. Walter Mack was appointed company chairman in 1950, and a former Coca-Cola vice-president of sales, Alfred N. Steele, took over as president and chief executive officer, bringing 15 other Coke executives with him. Steele continued the policy of management decentralization by giving broader powers to regional vice-presidents, and he placed Herbert Barnet in charge of Pepsi’s financial operations.
Former top executives at PepsiCo include Steven Reinemund, Roger Enrico, D. Wayne Calloway, John Sculley, Michael H. Jordan, Donald M. Kendall, Christopher A. Sinclair, Irene Rosenfeld, David C. Novak, Brenda C. Barnes, and Alfred Steele. On May 25, 2018, PepsiCo announced that it would acquire fruit and veggie snack maker Bare Foods.[31] It will also quarter-own allMotti in late November 2018 and it will be PepsiCo’s first owned Tech and Computer Service company. In the nonalcoholic beverage industry, The Coca-Cola Company (KO) is PepsiCo’s closest rival. Other peers in the beverage industry include Dr Pepper Snapple Group, Inc. (DPS), Cott Corporation (COT), Red Bull GmbH, and Monster Beverage Corporation (MNST).
Program reach expands beyond the U.S. to help more than 50 million people gain equitable access to nutritious food and support small-scale farmers as part of our pep+ agenda. Ramon Laguarta named chief executive officer of PepsiCo, succeeding Indra Nooyi. PepsiCo, the National pepsico wiki Football League and other partners team up at Super Bowl LII in Minneapolis, Minnesota to reduce waste and increase recycling. The company agrees to work with tomato farmers in Punjab, a pioneering model of public-private partnership that PepsiCo continues to embrace today.
The line “Rock & Roller Cola Wars” refers to Pepsi and Coke’s usage of various musicians in advertising campaigns. Both companies then competed to get other musicians to advertise its beverages. In 1959, the USSR held an exhibition of Soviet technology and culture in New York. The United States reciprocated with an exhibition in Sokolniki Park, Moscow, which led to the famous kitchen debate. President Richard Nixon and Soviet Premier Nikita Khrushchev sipping Pepsi, PepsiCo executive Donald Kendall was able to capture the attention of the Soviet people and, in 1972, negotiate a cola monopoly in the USSR.
Frito-Lay North America
These tests suggested that more consumers preferred the taste of Pepsi to Coca-Cola. The sales of Pepsi started to climb, and Pepsi kicked off the “Challenge” across the nation. By the early 1960s, companies like Pepsi had set their sights on the Baby Boomers. The first ads appealing to young people called “the Pepsi Generation” arrived, followed in 1964 by the company’s first diet soda, also targeted at young people. At first, Pepsi had been marketed as a digestive aid, appealing to consumers with the slogan, “Exhilarating, Invigorating, Aids Digestion.” But as the brand flourished, the company switched tactics and decided instead to use the power of celebrity to sell Pepsi. In 1913, Pepsi hired Barney Oldfield, a famous racecar driver of the era, as a spokesman.
PepsiCo Beverages North America
But Kendall also diversified outside the food and drink industry, bringing North American Van Lines (acquired in 1968), Lee Way Motor Freight, and Wilson Sporting Goods into the PepsiCo empire. The first Pepsi-Cola was created by Caleb D. Bradham (1866–1934), a pharmacist in New Bern, North Carolina. Hoping to duplicate the recent success of Coca-Cola, Bradham named his sweet cola-flavoured carbonated beverage Pepsi-Cola in 1898. The drink proved so popular that in 1902 Bradham incorporated the Pepsi-Cola Company. After many years of moderate prosperity, the company fell on hard times after World War I and was reorganized and reincorporated on several occasions in the 1920s.
Water usage (India, U.S., U.K.)
The AMESA sector is committed to PepsiCo’s vision of sustainable growth, which emphasizes efficient use of sustainable farming practices, energy and natural resources such as water. The sector is also working to create a world where plastic need never become waste by creating public-private partnerships in key markets to collect and recycle post-consumer plastic waste. Company brands introduced in the 1960s included Patio soft drinks, Teem, Tropic Surf, Diet Pepsi–the first nationally distributed diet soda, introduced in and Mountain Dew, acquired from the Tip Corporation, also in 1964. Pepsi Light, a diet cola with a hint of lemon, made its debut in 1975, and a few years later Pepsi tested the market with Aspen apple soda and On-Tap root beer. The company also introduced greater variety into the packaging of its products. Soon after Kendall’s accession, the 12-ounce bottle was phased out in favor of the 16-ounce size, and in the 1970s Pepsi-Cola became the first American company to introduce one-and-a-half and two-liter bottles; it also began to package its sodas in sturdy, lightweight plastic bottles.
PepsiCo noted that, while it took the average U.S. worker just 15 minutes to earn enough to enjoy a meal in one of the firm’s restaurants, it would take an Australian 25 minutes to achieve a similar goal. In 1992, for example, the company forged a joint venture with General Mills called Snack Ventures Europe which emerged as the largest firm in the $17 billion market. By 1993, PepsiCo had invested over $5 billion in international businesses, and its international sales comprised 27 percent, or $6.71 billion, of total annual sales.
Quaker Foods North America
PepsiCo acquires Walker Crisps and Smiths Crisps, two of the U.K.’s leading snack foods. In addition to Quaker branded products, Quaker Foods North America also makes, markets, distributes and sells cereals, rice, pasta, dairy and products such as Cheetos Mac‘N Cheese, Pearl Milling Company pancake mixes and syrups, Cap’n Crunch cereal, Life cereal, Rice-A-Roni and Near East side dishes. According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi conducted blind taste tests in stores, in what was called the “Pepsi Challenge”.
Pepsi-Cola’s growth continued until World War I, when sugar, then the main ingredient of all flavored sodas, was rationed. The wartime set price of sugar–5.5 cents per pound–rocketed after controls were lifted to as much as 26.5 cents per pound in 1920. Bradham, like his rivals, had to decide whether to halt production and sit tight in the hope that prices would soon drop, or stockpile the precious commodity as a precaution against even higher prices; he chose the latter course. But unfortunately for him the market was saturated by the end of 1920 and sugar prices plunged to a low of two cents per pound. PepsiCo targets African growth with offer to acquire Pioneer Foods, a leading food and beverage company in South Africa, whose brands include Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko, and White Star. Pepsi acquired the Mountain Dew brand in 1964 and a year later merged with snack-maker Frito-Lay.
Under Enrico, the marketing of new concepts was also emphasized, with one notable success being the introduction of stuffed-crust pizza at Pizza Hut. He had been an amateur boxing champion in his youth and joined the company as a production line worker in 1947 after a stint in the U.S. He was later promoted to syrup sales where it quickly became apparent that he was destined for higher office. Ever pugnacious, Kendall has been described as abrasive and ruthlessly ambitious; beleaguered Pepsi executives secretly referred to him as White Fang. The acquisition of CytoSport, a leading provider of protein products including Muscle Milk, EVOLVE and CytoMilk, further differentiates PepsiCo’s portfolio of options. PepsiCo celebrates its 50th anniversary as a combined food and beverage company.