Hoover's Online Report Builder
PepsiCo, Inc. (NYSE: PEP)
Copyright 2004, Hoover's, Inc.
Report Builder − PepsiCo, Inc. − Hoover's Online
Table of Contents
The Basics...............................................................................................................................................................................1
Key Numbers.............................................................................................................................................................1
Financial Overview....................................................................................................................................................1
Officers & Employees................................................................................................................................................1
Board Members..........................................................................................................................................................3
Industry Information..................................................................................................................................................4
SIC Codes...................................................................................................................................................................4
NAICS Codes.............................................................................................................................................................4
Top Competitors.........................................................................................................................................................4
All Competitors..........................................................................................................................................................4
Rankings.....................................................................................................................................................................5
Subsidiaries/Affiliates Covered By Hoover's Online.................................................................................................5
Biographies............................................................................................................................................................................6
Steven S. Reinemund, Age 55...................................................................................................................................6
Indra K. Nooyi, Age 48.............................................................................................................................................6
Robert S. (Bob) Morrison, Age 62............................................................................................................................6
Abelardo E. (Al) Bru, Age 55...................................................................................................................................7
Gary M. Rodkin, Age 51...........................................................................................................................................7
Michael D. White, Age 52........................................................................................................................................8
Lionel L. Nowell III, Age 49....................................................................................................................................8
Peter A. Bridgman, Age 51.......................................................................................................................................9
Dave Burwick, Age 40..............................................................................................................................................9
Brian Cornell, Age 43...............................................................................................................................................9
Matthew M. (Matt) McKenna, Age 53...................................................................................................................10
Paula Banks.............................................................................................................................................................10
David R. Andrews, Age 62.....................................................................................................................................10
Margaret D. (Peggy) Moore, Age 56......................................................................................................................11
Charles I. Maniscalco..............................................................................................................................................11
Dawn E. Hudson.....................................................................................................................................................11
Polly B. Kawalek, Age 49.......................................................................................................................................12
Albert P. (Al) Carey, Age 51..................................................................................................................................12
Rebecca Madeira.....................................................................................................................................................13
Katie Lacey.............................................................................................................................................................13
Andre Hawaux........................................................................................................................................................14
Steve Sears..............................................................................................................................................................14
Frank Cooper...........................................................................................................................................................14
Cie Nicholson, Age 39............................................................................................................................................14
Brian Cornell, Age 43.............................................................................................................................................15
John Delpino...........................................................................................................................................................15
Mike Dillon.............................................................................................................................................................15
Joan Pertak..............................................................................................................................................................15
Brock H. Leach, Age 43..........................................................................................................................................16
John F. Akers, Age 69.............................................................................................................................................16
Robert E. Allen, Age 68..........................................................................................................................................16
Peter Foy, Age 62....................................................................................................................................................17
Ray L. Hunt, Age 60...............................................................................................................................................17
Arthur C. Martinez, Age 63....................................................................................................................................18
Franklin D. Raines, Age 55.....................................................................................................................................18
i
Report Builder − PepsiCo, Inc. − Hoover's Online
Table of Contents
Biographies
Sharon Percy Rockefeller........................................................................................................................................19
James J. (Jim) Schiro, Age 57.................................................................................................................................19
Franklin A. Thomas, Age 69...................................................................................................................................19
Cynthia M. Trudell, Age 50....................................................................................................................................20
Solomon D. Trujillo, Age 51...................................................................................................................................21
Overview..............................................................................................................................................................................22
History..................................................................................................................................................................................23
Products/Operations...........................................................................................................................................................24
Other Resources Available On Hoover's Online..............................................................................................................28
Other Resources.......................................................................................................................................................28
Related Products From Our Trusted Partners..........................................................................................................28
Annual Financials................................................................................................................................................................29
Quarterly Financials...........................................................................................................................................................31
Historical Financials & Employees....................................................................................................................................34
Market Data.........................................................................................................................................................................36
Comparison Data.................................................................................................................................................................37
Competitive Landscape.......................................................................................................................................................39
ii
The Basics
700 Anderson Hill Rd.
Purchase, NY 10577−1444 (Map)
http://www.pepsico.com
Phone: 914−253−2000
Fax: 914−253−2070
The PepsiCo challenge −− to keep up with archrival The Coca−Cola Company −− never ends for the world's #2
soft−drink maker. PepsiCo's soft drinks (including Pepsi, Mountain Dew, Slice) make up about one−quarter of its sales.
(Bottling operations are run independently.) PepsiCo also owns Frito−Lay, the world's #1 maker of snacks such as corn
chips (Doritos, Fritos) and potato chips (Lay's, Ruffles, WOW!). PepsiCo sells its Gatorade sports drink and Tropicana
orange juice brands through other divisions. The company also sells Aquafina bottled water, Dole juices (licensed), Lipton
ready−to−drink tea, and Rold Gold pretzels.
Key Numbers
Company Type
Public (NYSE: PEP)
Fiscal Year−End
December
2003 Sales (mil.)
$26,971.0
1−Year Sales Growth
7.4%
2003 Net Income (mil.)
$3,568.0
1−Year Net Income Growth
7.7%
2002 Employees
142,000
1−Year Employee Growth
(0.7%)
Auditor
KPMG LLP
Financial Overview
Last Close 10−Mar−2004
$52.24
52−Week High
$53.00
52−Week Low
$38.06
Basic EPS
$2.05
Price/Earnings Ratio
25.48
Current Ratio
1.08
R&D Expenditures (mil.)
−−
Ad Expenditures (mil.)
−−
% Owned by Institutions
66.10%
Officers & Employees
Title
Name
Age
Report Builder − PepsiCo, Inc. − Hoover's Online
Salary
Bonus
1
Chairman and CEO
Steven S. Reinemund
55
$1,000,000
$3,150,000
President, CFO, and Director
Indra K. Nooyi
48
$700,000
$1,350,000
Vice Chairman; Chairman,
Robert S. (Bob) Morrison
President, and CEO, The Quaker
Oats Company
62
$1,017,959
$2,000,000
Chairman and CEO, Frito−Lay
North America
Abelardo E. (Al) Bru
55
Chairman and CEO, PepsiCo
Beverages and Foods North
America
Gary M. Rodkin
51
$673,076
$1,057,470
Chairman and CEO, PepsiCo
International
Michael D. White
52
SVP and Treasurer
Lionel L. Nowell III
49
SVP and Controller
Peter A. Bridgman
51
SVP and Chief Marketing
Officer, Pepsi−Cola North
America
Dave Burwick
40
SVP and President, Pepsi−Cola
North America Foodservice
Brian Cornell
43
SVP, Finance
Matthew M. (Matt) McKenna
53
$366,938
$261,540
SVP, Finance, Investor Relations Jack F. Callahan Jr.
SVP, Global Diversity and
Organization Partnerships
Paula Banks
SVP, Government Affairs,
General Counsel, and Secretary
David R. Andrews
62
SVP, Human Resources
Margaret D. (Peggy) Moore
56
VP, Sales Foodservice and
Vending
Jane Sumner
President, Pepsi Canada
(Effective
Thomas L. Bené
in 2004)
President, Gatorade
Charles I. Maniscalco
President, PepsiCo Shared
Services (CIO, CTO)
Shauna King
President, Pepsi−Cola North
America
Dawn E. Hudson
President, Quaker U.S. Foods
Polly B. Kawalek
49
President, Sales
Albert P. (Al) Carey
51
SVP, Public Affairs, Pepsi−Cola
North America
Rebecca Madeira
VP, Colas and Media, Pepsi−Cola Katie Lacey
North America
Report Builder − PepsiCo, Inc. − Hoover's Online
2
VP, Industry Relations,
Pepsi−Cola North America and
PepsiCo Sales
Steve Caldeira
VP, Finance and CFO,
Pepsi−Cola North America
Andre Hawaux
VP, Marketing, Flavors,
Pepsi−Cola North America
Steve Sears
VP, Multicultural Marketing,
Pepsi−Cola North America
Frank Cooper
VP, Noncarbonated Beverages,
Pepsi−Cola North America
Cie Nicholson
39
President, Food Service Division, Brian Cornell
Pepsi−Cola North America
43
Director, Human Resources,
Pepsi−Cola North America
John Delpino
Director, Packaging Innovation,
Pepsi−Cola North America
Mike Dillon
Divisional CIO, Pepsi−Cola
North America
Joan Pertak
Special Development Projects
Brock H. Leach
Director, Alternative Beverages
Robin Kaminsky
Chief Personnel Officer
Lucien Alziari
43
Board Members
Title
Name
Age
Chairman and CEO
Steven S. Reinemund
55
President, CFO, and Director
Indra K. Nooyi
48
Director
John F. Akers
69
Director
Robert E. Allen
68
Director
Peter Foy
62
Director
Ray L. Hunt
60
Director
Arthur C. Martinez
63
Director
Franklin D. Raines
55
Director
Sharon Percy Rockefeller
Director
James J. (Jim) Schiro
57
Director
Franklin A. Thomas
69
Director
Cynthia M. Trudell
50
Director
Solomon D. Trujillo
51
Director
Daniel L. Vasella
50
Report Builder − PepsiCo, Inc. − Hoover's Online
3
Industry Information
• Beverages
♦ Nonalcoholic Beverages
◊ Carbonated Beverages (primary)
◊ Coffee & Tea
◊ Energy, Sports, Health & Nutritional Drinks
◊ Juice
◊ Water & Ice
• Food
♦ Grains
◊ Milled Grains, Flours & Baking Mixes
◊ Pastas & Cereals
♦ Snack Foods
♦ Sugar & Sweeteners
SIC Codes
2043
Cereal breakfast foods
2045
Prepared flour mixes and doughs
2086
Bottled and canned soft drinks
2095
Roasted coffee
2096
Potato chips and similar snacks
NAICS Codes
311230
Breakfast Cereal Manufacturing
311411
Frozen Fruit, Juice, and Vegetable Manufacturing
311822
Flour Mixes and Dough Manufacturing from Purchased Flour
311919
Other Snack Food Manufacturing
311920
Coffee and Tea Manufacturing
312111
Soft Drink Manufacturing
312112
Bottled Water Manufacturing
Top Competitors
• Cadbury Schweppes
• Coca−Cola
• Kraft Foods
All Competitors
• Bimbo
• Cadbury Schweppes
• Campbell Soup
• Chiquita Brands
• Coca−Cola
• ConAgra
Report Builder − PepsiCo, Inc. − Hoover's Online
4
• Cott
• Danone
• Ferolito, Vultaggio
• Florida's Natural
• General Mills
• Golden Enterprises
• Kellogg Snacks
• Kraft Foods
• Lance
• Naked Juice
• National Beverage
• National Grape Cooperative
• Nestlé
• Nestlé Waters North America
• Northland Cranberries
• Ocean Spray
• Procter & Gamble
• Suntory
• Virgin Group
Rankings
• #62 in FORTUNE 500
• S&P 500
• Dow Jones Global Titans
• #33 in FT Global 500
Subsidiaries/Affiliates Covered By Hoover's Online
• Frito−Lay, Inc.
• Gatorade/Tropicana North America
• The Pepsi Bottling Group, Inc.
♦ Pepsi Bottling Co. of Knoxville
• Pepsi Bottling Ventures, LLC
• Pepsi−Cola North America
• PepsiCo International
• Pepsi−Cola Bottling Company of NY, Inc.
• South Beach Beverage Company
Report Builder − PepsiCo, Inc. − Hoover's Online
5
Biographies
Steven S. Reinemund, Age 55
Chairman and CEO, $1,000,000 salary, $3,150,000 bonus
Other Company Affiliations
Company
Title
Johnson & Johnson
Director
Salary
Bonus
Biography
Steven S Reinemund has been PepsiCo's Chairman and Chief Executive Officer since May 2001. He was elected a
director of PepsiCo in 1996 and before assuming his current position, served as President and Chief Operating Officer
from September 1999 until May 2001. Mr. Reinemund began his career with PepsiCo in 1984 as a senior operating officer
of Pizza Hut, Inc. He became President and Chief Executive Officer of Pizza Hut in 1986, and President and Chief
Executive Officer of Pizza Hut Worldwide in 1991. In 1992, Mr. Reinemund became President and Chief Executive
Officer of Frito−Lay, Inc., and Chairman and Chief Executive Officer of the Frito−Lay Company in 1996. Mr.
Reinemund is also a director of Johnson & Johnson.
Source: 10K, March 4, 2004
Indra K. Nooyi, Age 48
President, CFO, and Director, $700,000 salary, $1,350,000 bonus
Other Company Affiliations
Company
Title
Motorola, Inc.
Director
Salary
Bonus
Biography
Indra K. Nooyi was elected to PepsiCo's Board and became President and Chief Financial Officer in May 2001, after
serving as Senior Vice President and Chief Financial Officer since February 2000. Ms. Nooyi also served as Senior Vice
President, Strategic Planning and Senior Vice President, Corporate Strategy and Development from 1994 until 2000. Prior
to joining PepsiCo, Ms. Nooyi spent four years as Senior Vice President of Strategy, Planning and Strategic Marketing for
Asea Brown Boveri, Inc. She was also Vice President and Director of Corporate Strategy and Planning at Motorola, Inc.
Ms. Nooyi is also a director of Motorola, Inc.
Source: S−1, March 4, 2004
Robert S. (Bob) Morrison, Age 62
Vice Chairman; Chairman, President, and CEO, The Quaker Oats Company, $1,017,959 salary, $2,000,000 bonus
Report Builder − PepsiCo, Inc. − Hoover's Online
6
Other Company Affiliations
Company
Title
Aon Corporation
Director
Tribune Company
Director
Salary
Bonus
Recent Work Highlights
• The Quaker Oats Company
♦ Last position held, Chairman, President and CEO
Biography
Robert S. Morrison is Vice Chairman of PepsiCo and Chairman, President and Chief Executive Officer of The Quaker
Oats Company. Mr. Morrison became Vice Chairman of PepsiCo in August 2001, upon completion of the merger with
Quaker. He was elected Quaker's Chairman, President and Chief Executive Officer in 1997. Prior to joining Quaker, Mr.
Morrison was Chief Executive Officer of Kraft, Inc. from 1994 to 1997. Previously, he served as President of Kraft
Refrigerated Products Group, President of Kraft General Foods Canada and President of General Foods U.S.A.
Source: 10K, March 20, 2002
Abelardo E. (Al) Bru, Age 55
Chairman and CEO, Frito−Lay North America
Biography
Abelardo E. Bru was appointed Chairman and Chief Executive Officer of Frito−Lay North America in February 2003.
Mr. Bru served as President and Chief Executive Officer of Frito−Lay North America from 1999 to 2003 and as President
and General Manager of PepsiCo's Sabritas snack unit from 1992 to 1999. Mr. Bru has served in various senior
international positions with PepsiCo Foods International since joining PepsiCo in 1976.
Source: 10K, March 4, 2004
Gary M. Rodkin, Age 51
Chairman and CEO, PepsiCo Beverages and Foods North America, $673,076 salary, $1,057,470 bonus
Biography
Gary M. Rodkin was appointed Chairman and Chief Executive Officer of PepsiCo Beverages and Foods North America
in February 2003. Mr. Rodkin became President and Chief Executive Officer of PepsiCo Beverages and Foods North
America in 2002. He served as President and Chief Executive Officer of Pepsi−Cola North America from 1999 to 2002.
Mr. Rodkin was President of Tropicana North America from 1995 to 1998, and became President and Chief Executive
Officer of Tropicana when PepsiCo acquired it in 1998.
Source: 10K, March 4, 2004
Report Builder − PepsiCo, Inc. − Hoover's Online
7
Michael D. White, Age 52
Chairman and CEO, PepsiCo International
Other Company Affiliations
Company
Title
Salary
PepsiCo International
Chairman and CEO, PepsiCo International
Bonus
Recent Work Highlights
• PepsiCo, Inc.
♦ Title held until 2003: President and CEO, Frito−Lay Europe, Africa, and Middle East and Quaker Foods
Europe
Biography
Michael D. White was appointed Chairman and Chief Executive Officer of PepsiCo International in February 2003, after
serving as President and Chief Executive Officer of Frito−Lay's Europe/Africa/Middle East division since 2000. From
1998 to 2000, Mr. White was Senior Vice President and Chief Financial Officer of PepsiCo. Mr. White has also served as
Executive Vice President and Chief Financial Officer of PepsiCo Foods International and Chief Financial Officer of
Frito−Lay North America. He joined Frito−Lay in 1990 as Vice President of Planning.
Source: 10K, March 4, 2004
Lionel L. Nowell III, Age 49
SVP and Treasurer
Other Company Affiliations
Company
Title
Church & Dwight Co., Inc.
Director
PepsiAmericas, Inc.
Director
Salary
Bonus
Biography
Lionel L. Nowell III has been our Senior Vice President and Treasurer since August 2001. Mr. Nowell joined PepsiCo as
Senior Vice President and Controller in 1999 and then became Senior Vice President and Chief Financial Officer of The
Pepsi Bottling Group. Prior to joining PepsiCo, he was Senior Vice President, Strategy and Business Development for
RJR Nabisco, Inc. From 1991 to 1998, he served as Chief Financial Officer of Pillsbury North America, and its Pillsbury
Foodservice and Haagen Dazs units, serving as Vice President and Controller of the Pillsbury Company, Vice President of
Food and International Retailing Audit, and Director of Internal Audit.
Source: 10K, March 4, 2004
Report Builder − PepsiCo, Inc. − Hoover's Online
8
Peter A. Bridgman, Age 51
SVP and Controller
Biography
Peter A. Bridgman has been our Senior Vice President and Controller since August 2000. Mr. Bridgman began his career
with PepsiCo at Pepsi−Cola International in 1985 and became Chief Financial Officer for Central Europe in 1990. He
became Senior Vice President and Controller for Pepsi−Cola North America in 1992 and Senior Vice President and
Controller for The Pepsi Bottling Group, Inc. in 1999.
Source: 10K, March 4, 2004
Dave Burwick, Age 40
SVP and Chief Marketing Officer, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
Chief Marketing Officer
Salary
Bonus
Biography
Dave Burwick was named senior vice president and chief marketing officer of Pepsi−Cola North America. Burwick −
formerly senior vice president, marketing, carbonated soft drink brands − will broaden his reach to oversee both
carbonated and non−carbonated brand marketing, product innovation, marketplace initiatives and consumer insights. He
will report to Dawn Hudson, who was named president of Pepsi−Cola North America in early June.
Source: Company Press Release, June 20, 2002
Brian Cornell, Age 43
SVP and President, Pepsi−Cola North America Foodservice
Recent Work Highlights
• PepsiCo, Inc.
♦ Title held until 2004: President, Food Service Division, Pepsi−Cola North America
Biography
Cornell was regional president of Europe for PepsiCo Beverages International, another unit of Purchase, New York−based
PepsiCo. He has been with PepsiCo since 1998 and joined Tropicana, now part of PepsiCo, in 1991, the company said. He
had also been responsible for noncarbonated drinks marketing at PepsiCo Beverages International.
Source: Company Press Release, August 12, 2002
Report Builder − PepsiCo, Inc. − Hoover's Online
9
Matthew M. (Matt) McKenna, Age 53
SVP, Finance, $366,938 salary, $261,540 bonus
Other Company Affiliations
Company
Title
PepsiAmericas, Inc.
Director
Salary
Bonus
Biography
Matthew M. McKenna has been our Senior Vice President of Finance since August 2001. Mr. McKenna began his career
at PepsiCo as Vice President, Taxes in 1993. In 1998, he became Senior Vice President, Taxes and served as Senior Vice
President and Treasurer from 1998 until 2001. Prior to joining PepsiCo, he was a partner with the law firm of Winthrop,
Stimson, Putnam & Roberts in New York.
Source: 10K, March 4, 2004
Paula Banks
SVP, Global Diversity and Organization Partnerships
Biography
Ms. Banks, who reports to Chairman and Chief Executive Officer Steve Reinemund, joined PepsiCo from BP Amoco, the
world's second largest transnational oil company. From 1999 to 2003 she worked at the company's London headquarters
as senior vice president, social strategy and policy and as president of the BP Foundation, in which she was charged with
building stronger relationships between BP and the communities in which it operates around the world. Previously she
worked in Chicago as president of the Amoco Foundation and director of corporate affairs for Amoco. Earlier she spent
24 years at Sears Roebuck and Co. in a variety of positions including retail management, human resources, external affairs
and public relations and served as president of the Sears Roebuck Foundation.
Source: Company Press Release, June 23, 2003
David R. Andrews, Age 62
SVP, Government Affairs, General Counsel, and Secretary
Other Company Affiliations
Company
Title
PG&E Corporation
Director
UnionBanCal Corporation
Director
Salary
Report Builder − PepsiCo, Inc. − Hoover's Online
Bonus
10
Biography
David R. Andrews became PepsiCo's Senior Vice President, Government Affairs, General Counsel and Secretary in
February 2002. Before joining PepsiCo, Mr. Andrews was a partner in the law firm of McCutchen, Doyle, Brown &
Enersen, LLP, a position he held from 2000 to 2002 and from 1981 to 1997. From 1997 to 2000, he served as the legal
adviser to the U.S. Department of State and former Secretary of State Madeleine Albright.
Source: 10K, March 4, 2004
Margaret D. (Peggy) Moore, Age 56
SVP, Human Resources
Other Company Affiliations
Company
Title
The Pepsi Bottling Group, Inc.
Director
Salary
Bonus
Biography
Margaret D. Moore is our Senior Vice President, Human Resources, a position she assumed at the end of 1999. From
November 1998 to December 1999, she was Senior Vice President and Treasurer of The Pepsi Bottling Group, Inc.
(PBG). Prior to joining PBG, Ms. Moore spent 25 years with PepsiCo in a number of senior financial and human
resources positions.
Source: 10K, March 4, 2004
Charles I. Maniscalco
President, Gatorade
Recent Work Highlights
• The Quaker Oats Company
♦ Last position held, SVP; President, US Beverages
Biography
Charles I. Maniscalco, a 21−year Quaker veteran, will succeed Wellington as President of U.S. Beverages with
responsibility for Gatorade. Maniscalco joined Quaker in 1980 and has held a succession of key marketing and general
management positions involving Gatorade and other Quaker brands. Maniscalco served as president of Quaker's snack
business from 1998 until the present, a period that saw strong growth.
Source: Company Press Release, February 6, 2002
Dawn E. Hudson
President, Pepsi−Cola North America
Report Builder − PepsiCo, Inc. − Hoover's Online
11
Other Company Affiliations
Company
Title
Pepsi−Cola North America
President
Salary
Bonus
Biography
Dawn Hudson became president of Pepsi−Cola North America (PCNA) in June 2002. Having served most recently as
senior vice president, strategy and marketing for PCNA, Hudson is a preeminent marketer with more than 20 years of
experience building some of the world's best−known consumer brands. At PCNA, she has led brand strategy and
marketing, channel strategy, product innovation, research and development and joint ventures. Since 1998, Hudson has
been responsible for developing creative advertising, packaging, merchandising and promotional programs which have
been highly effective in driving volume growth. Driven largely by innovation, PCNA was the industry's fastest−growing
total beverage company in 2001, outpacing its primary competitor in volume and share gains. In 1999, Hudson launched
Pepsi's popular "Joy of Cola" campaign and guided Pepsi into its largest summer promotion ever, a tie−in with "Star
Wars, Episode I − The Phantom Menace." In 2000, she helped revitalize the Pepsi Challenge after a 17−year hiatus. And,
in 2001, she launched new "Joy of Pepsi" advertising featuring Britney Spears and oversaw the hugely successful
introductions of Mountain Dew Code Red and Pepsi Twist. Hudson joined PepsiCo in 1996 as executive vice president of
sales and marketing for Frito−Lay. She was previously managing director at D'Arcy Masius Benton & Bowles in New
York. Prior to that, she was a managing partner in the New York/Chicago offices of DDB Needham, where she also was
director of account management and integrated marketing. In the early 1980s, Hudson was a partner at TLK in Chicago
and a brand manager for Bristol Myers.
Source: Company Press Release, June 7, 2002
Polly B. Kawalek, Age 49
President, Quaker U.S. Foods
Other Company Affiliations
Company
Title
Kimball International, Inc.
Director
Salary
Bonus
Recent Work Highlights
• The Quaker Oats Company
♦ Last position held, SVP; President, US Foods
Albert P. (Al) Carey, Age 51
President, Sales
Recent Work Highlights
• PepsiCo, Inc.
♦ Title held until 2003: COO, PepsiCo Beverages and Foods North America
• The Quaker Oats Company
Report Builder − PepsiCo, Inc. − Hoover's Online
12
♦ Last position held, Sales Team Leader
Biography
The company named Al Carey President of PepsiCo sales, a position from which he will lead a cross−divisional drive to
present a "unified PepsiCo message" to customers. Carey was named chief operating officer of PepsiCo Beverages and
Foods North America in June 2002 with the sales teams for Quaker, Tropicana and PCNA reporting to him. Carey will
oversee all sales, customer strategies and go− to−market initiatives for the combined PCNA, Gatorade, Tropicana and
Quaker businesses. He worked closely with the presidents of each of those units. Carey led "Power of One" initiatives to
leverage the combined strength of PepsiCo's beverage and snack divisions worldwide. At PCNA, since the 1999 spin−off
of company−owned bottling operations into The Pepsi Bottling Group, Carey has played a key role in realigning the sales
organization to work more closely and effectively with its bottlers and retail customers. He has overseen all channel
development, including small− and large−format, foodservice and a new sales force dedicated to non−carbonated brands,
the fastest−growing part of the business. Under his stewardship, PCNA has continued to win new accounts and create
significant new business alliances, including United Airlines, Blimpie International, Bob's Big Boy and several regional
fountain accounts. After seven years in sales at Procter & Gamble, Carey joined Frito−Lay as director of trade
development in 1981. Subsequent positions with Frito−Lay included vice president of national sales, vice
president/general manager of direct sales and division president of Frito−Lay West. Prior to assuming his current roles
with PCNA and PepsiCo, Carey served as chief operating officer of Frito−Lay North America, where he was responsible
for day−to−day retail and foodservice operations.
Source: Company Press Release, February 6, 2003
Rebecca Madeira
SVP, Public Affairs, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
SVP, Public Affairs
Salary
Bonus
Katie Lacey
VP, Colas and Media, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
VP, Marketing, Colas and Media
Salary
Bonus
Biography
Katie Lacey has been named vice president−colas and media. Previously, Lacey was responsible for all brands under the
Pepsi trademark, and worked on the launch of Pepsi Twist and the development of Pepsi Blue, a blue, berry−flavored cola
that will begin selling later in 2002.
Source: Company Press Release, June 20, 2002
Report Builder − PepsiCo, Inc. − Hoover's Online
13
Andre Hawaux
VP, Finance and CFO, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
VP, Finance and CFO
Salary
Bonus
Salary
Bonus
Salary
Bonus
Steve Sears
VP, Marketing, Flavors, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
VP, Marketing, Flavors
Recent Work Highlights
• Pepsi−Cola North America
♦ Title held until 2004: VP, Marketing, Noncarbonated Beverages
Frank Cooper
VP, Multicultural Marketing, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
Multicultural Marketing
Cie Nicholson, Age 39
VP, Noncarbonated Beverages, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
VP, Noncarbonated Beverages
Report Builder − PepsiCo, Inc. − Hoover's Online
Salary
Bonus
14
Recent Work Highlights
• Pepsi−Cola North America
♦ Title held until 2004: VP, Flavors
Brian Cornell, Age 43
President, Food Service Division, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Salary
Pepsi−Cola North America
SVP Sales and President, Food Service Division
Bonus
John Delpino
Director, Human Resources, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
Director, Human Resources
Salary
Bonus
Mike Dillon
Director, Packaging Innovation, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
Director, Packaging Innovation
Salary
Bonus
Joan Pertak
Divisional CIO, Pepsi−Cola North America
Other Company Affiliations
Company
Title
Pepsi−Cola North America
Divisional CIO
Salary
Report Builder − PepsiCo, Inc. − Hoover's Online
Bonus
15
Brock H. Leach, Age 43
Special Development Projects
Biography
Brock Leach, who now leads new special development projects at PepsiCo, reports to Chairman and CEO Steve
Reinemund. Among other responsibilities, Leach will direct the company's strategic focus on health and well−being, in
partnership with Dr. Ken Cooper, the renowned Cooper Clinic and other experts, to broaden PepsiCo's offerings of
nutritious products and encourage physical fitness.
Source: Company Press Release, June 7, 2002
John F. Akers, Age 69
Director
Other Company Affiliations
Company
Title
Lehman Brothers Holdings Inc.
Director
The New York Times Company
Director
W. R. Grace & Co.
Director
Salary
Bonus
Biography
JOHN F. AKERS former Chairman of the Board and Chief Executive Officer of International Business Machines
Corporation, has been a member of PepsiCo's Board since 1991 and is Chairman of its Compensation Committee. Mr.
Akers joined IBM in 1960 and was Chairman and Chief Executive Officer from 1986 until 1993. He is also a director of
Hallmark Cards, Inc., Lehman Brothers Holdings, Inc., The New York Times Company, and W.R. Grace & Co.
Source: Proxy, March 24, 2003
Robert E. Allen, Age 68
Director
Other Company Affiliations
Company
Title
Bristol−Myers Squibb Company
Director
Salary
Bonus
Biography
ROBERT E. ALLEN former Chairman of the Board and Chief Executive Officer of AT&T Corp., has been a member of
PepsiCo's Board since 1990 and is Chairman of its Nominating and Corporate Governance Committee. He began his
career at AT&T in 1957 when he joined Indiana Bell. He was elected President and Chief Operating Officer of AT&T in
Report Builder − PepsiCo, Inc. − Hoover's Online
16
1986, and was Chairman and Chief Executive Officer from 1988 until 1997. He is also a director of Bristol−Myers Squibb
Company and WhisperWire, and a Trustee of The Mayo Foundation and Wabash College.
Source: Proxy, March 24, 2003
Peter Foy, Age 62
Director
Biography
PETER FOY is Chairman of Whitehead Mann Group, an executive search firm based in London, a position he has held
since January 1, 2001. He was elected to PepsiCo's Board in 1997. He is the former Chairman of Baring Brothers
International Ltd., the corporate finance section of ING Group's investment bank. Mr. Foy joined McKinsey & Co., Inc. in
1968, became a director and head of its U.K. Consumer Goods Practice in 1980, the managing director of McKinsey U.K.
in 1983, and was Senior Partner from 1990 until 1996. In 1996, he became Chairman of Baring Brothers, a position he
held until he retired in December 1998. Mr. Foy is also a director of P&O Princess Cruises plc and Safeway plc.
Source: Proxy, March 24, 2003
Ray L. Hunt, Age 60
Director
Other Company Affiliations
Company
Title
Electronic Data Systems Corporation
Director
Halliburton Company
Director
Hunt Consolidated Inc.
Chairman, President, and CEO
Hunt Oil Company
Chairman and CEO
Salary
Bonus
Recent Work Highlights
• Security Capital Group Incorporated
♦ Last position held, Director
Biography
RAY L. HUNT Chairman and Chief Executive Officer of Hunt Oil Company and Chairman, Chief Executive Officer and
President, Hunt Consolidated, Inc., was elected to PepsiCo's Board in 1996. Mr. Hunt began his association with Hunt Oil
Company in 1958 and has held his current position since 1976. He is also a director of Halliburton Company, Electronic
Data Systems Corporation, King Ranch, Inc., and Chairman of the Board of Directors of the Federal Reserve Bank of
Dallas.
Source: Proxy, March 24, 2003
Report Builder − PepsiCo, Inc. − Hoover's Online
17
Arthur C. Martinez, Age 63
Director
Other Company Affiliations
Company
Title
International Flavors & Fragrances Inc.
Director
Liz Claiborne, Inc.
Director
Martha Stewart Living Omnimedia Inc.
Lead Director
Salary
Bonus
Biography
ARTHUR C. MARTINEZ former Chairman of the Board, President and Chief Executive Officer of Sears, Roebuck and
Co., was elected to PepsiCo's Board in 1999. Mr. Martinez was Chairman and Chief Executive Officer of the former Sears
Merchandise Group from 1992 to 1995 and served as Chairman of the Board, President and Chief Executive Officer of
Sears, Roebuck and Co. from 1995 until 2000. He served as Vice Chairman and a director of Saks Fifth Avenue from
1990 to 1992. He is also a director of Liz Claiborne, Inc., International Flavors and Fragrances, Inc. and Martha Stewart
Living Omnimedia, Inc. Mr. Martinez is a member of the Supervisory Board of ABN AMRO Holding, N.V.
Source: Proxy, March 24, 2003
Franklin D. Raines, Age 55
Director
Other Company Affiliations
Company
Title
Salary
Bonus
Fannie Mae
Chairman and CEO
$992,250
$3,300,000
Pfizer Inc
Director
Time Warner Inc.
Director
Recent Work Highlights
• Fannie Mae
♦ 2000: Chairman and CEO, $945,000 salary, $1,890,000 bonus
Biography
FRANKLIN D. RAINES was elected to PepsiCo's Board in 1999, and is Chairman of its Audit Committee. Mr. Raines
has been Chairman of the Board and Chief Executive Officer of Fannie Mae since January 1999. He was Director of the
U.S. Office of Management and Budget from 1996 to 1998. From 1991 to 1996, he was Vice Chairman of Fannie Mae
and in 1998 he became Chairman and CEO−Designate. Prior to joining Fannie Mae, Mr. Raines was a general partner at
Lazard Freres & Co., an investment banking firm. Mr. Raines is also a director of AOL Time Warner Inc. and Pfizer Inc.
Source: Proxy, March 24, 2003
Report Builder − PepsiCo, Inc. − Hoover's Online
18
Sharon Percy Rockefeller
Director
Other Company Affiliations
Company
Title
Greater Washington Educational Telecommunication Association
President and CEO
Salary
Bonus
Biography
SHARON PERCY ROCKEFELLER was elected a director of PepsiCo in 1986. She is President and Chief Executive
Officer of WETA public stations in Washington, D.C., a position she has held since 1989, and was a member of the Board
of Directors of WETA from 1985 to 1989. She is a member of the Board of Directors of Public Broadcasting Service,
Washington, D.C. and was a member of the Board of Directors of the Corporation for Public Broadcasting until 1992.
Mrs. Rockefeller is also a director of Sotheby's Holdings, Inc.
Source: Proxy, March 24, 2003
James J. (Jim) Schiro, Age 57
Director
Other Company Affiliations
Company
Title
Zurich Financial Services
CEO
Salary
Bonus
Recent Work Highlights
• Price Waterhouse
♦ Last position held, CEO; Chairman and Senior Partner, Price Waterhouse LLP (US)
Biography
JAMES J. SCHIRO was elected to PepsiCo's Board in January 2003. Mr. Schiro became Chief Executive Officer of
Zurich Financial Services in May 2002, after serving as Chief Operating Officer−Group Finance since March 2002. He
joined Price Waterhouse in 1967, where he held various management positions. In 1994 he was elected Chairman and
senior partner of Price Waterhouse, and in 1998 became Chief Executive Officer of PricewaterhouseCoopers, after the
merger of Price Waterhouse and Coopers & Lybrand.
Source: Proxy, March 24, 2003
Franklin A. Thomas, Age 69
Director
Report Builder − PepsiCo, Inc. − Hoover's Online
19
Other Company Affiliations
Company
Title
Alcoa Inc.
Director
Citigroup Inc.
Director
Lucent Technologies Inc.
Director
Salary
Bonus
Recent Work Highlights
• Conoco Inc.
♦ Last position held, Director
Biography
FRANKLIN A. THOMAS was elected to PepsiCo's Board in 1994. From 1967 to 1977, he was President and Chief
Executive Officer of the Bedford−Stuyvesant Restoration Corporation. From 1977 to 1979 Mr. Thomas had a private law
practice in New York City. Mr. Thomas was President of the Ford Foundation from 1979 to April 1996 and is currently a
consultant to the TFF Study Group, a non−profit organization assisting development in southern Africa. He is also a
director of ALCOA Inc., Citigroup Inc., Cummins, Inc. and Lucent Technologies.
Source: Proxy, March 24, 2003
Cynthia M. Trudell, Age 50
Director
Other Company Affiliations
Company
Title
Salary
Bonus
Brunswick Corporation
VP; President, Sea Ray
$430,000
$1,010,500
Sea Ray Boats, Inc.
President
Recent Work Highlights
• Brunswick Corporation
♦ Title held until 2004: VP; President, Sea Ray
Biography
CYNTHIA M. TRUDELL President of Sea Ray Group since 2001, was elected to PepsiCo's Board in January 2000. From
1999 until 2001, Ms. Trudell served as General Motors' Vice President and Chairman and President of Saturn
Corporation, a wholly owned subsidiary of GM. Ms. Trudell began her career with the Ford Motor Co. as a chemical
process engineer. In 1981, she joined GM and held various engineering and manufacturing supervisory positions. In 1995,
she became plant manager at GM's Wilmington Assembly Center in Delaware. In 1996, she became President of IBC
Vehicles in Luton, England, a joint venture between General Motors and Isuzu.
Source: Proxy, March 24, 2003
Report Builder − PepsiCo, Inc. − Hoover's Online
20
Solomon D. Trujillo, Age 51
Director
Other Company Affiliations
Company
Title
Salary
France Telecom SA
SEVP; Chairman and CEO, Orange SA
Gannett Co., Inc.
Director
Orange SA
Chairman and CEO
Target Corporation
Director
Bonus
Recent Work Highlights
• Graviton, Inc.
♦ Last position held, Chairman, President, and CEO
• U S WEST, Inc.
♦ Last position held, Chairman, President and CEO
Biography
SOLOMON D. TRUJILLO Chief Executive Officer of Orange SA since March 2003, was elected to PepsiCo's Board in
January 2000. Previously, Mr. Trujillo was Chairman, Chief Executive Officer and President of Graviton, Inc. from
November 2000, Chairman of US WEST from May 1999, and President and Chief Executive Officer of US WEST
beginning in 1998. He served as President and Chief Executive Officer of US WEST Communications Group and
Executive Vice President of US WEST from 1995 until 1998 and President and Chief Executive Officer of US WEST
Dex, Inc. from 1992 to 1995. Mr. Trujillo is also a director of Gannett Company, Inc., Orange SA and Target Corporation.
Source: Proxy, March 24, 2003
Report Builder − PepsiCo, Inc. − Hoover's Online
21
Overview
The PepsiCo challenge −− to keep up with archrival The Coca−Cola Company −− never ends for the world's #2
soft−drink maker. PepsiCo's soft drinks (including Pepsi, Mountain Dew, Slice) make up about one−quarter of its sales.
(Bottling operations are run independently.) PepsiCo also owns Frito−Lay, the world's #1 maker of snacks such as corn
chips (Doritos, Fritos) and potato chips (Lay's, Ruffles, WOW!). PepsiCo sells its Gatorade sports drink and Tropicana
orange juice brands through other divisions. The company also sells Aquafina bottled water, Dole juices (licensed), Lipton
ready−to−drink tea, and Rold Gold pretzels.
PepsiCo may be vying for more Pepsi−drinking teenagers, but rising snacks and juice sales are helping to quench the
company's thirst for growth. Frito−Lay's salty snacks rule more than half of the US market; the snack division contributes
more than 50% of company sales.
PepsiCo's soft−drink business is the longtime runner−up to The Coca−Cola Company, and its market share still lags
behind its rival's. PepsiCo will launch a joint venture with Unilever in early 2004 to sell Lipton ready−to−drink tea in
targeted markets worldwide. The company will be called Pepsi Lipton International.
Back in the US, PepsiCo has announced a restructuring of its PepsiCo Beverages & Foods division. The restructuring
creates five subdivisions: Pepsi−Cola North America, Juices, Gatorade, Quaker Foods, and Canada. PepsiCo will cut 275
jobs as part of this streamlining. Pepsi expects to hand out pink slips to an additional 330 employees in early 2004 when it
closes a Frito−Lay plant in Kentucky and manufacturing lines in Arkansas and Maryland. An additional 145 people will
lose their jobs in unspecificed areas.
PepsiCo hopes to make a splash in the low−calorie market with Edge, a full−flavored cola that contains sugar substitute
Splenda and has 50% less sugar than regular Pepsi.
Retailing giant Wal−Mart accounts for about 10% of Pepsi's domestic sales.
Report Builder − PepsiCo, Inc. − Hoover's Online
22
History
Pharmacist Caleb Bradham invented Pepsi in 1898 in New Bern, North Carolina. He named his new drink Pepsi−Cola
(claiming it cured dyspepsia, or indigestion) and registered the trademark in 1903. Following The Coca−Cola Company's
example, Bradham developed a bottling franchise system. By WWI, 300 bottlers had signed up. After the war, Bradham
stockpiled sugar to safeguard against rising costs, but in 1920 sugar prices plunged, forcing him into bankruptcy in 1923.
Pepsi existed on the brink of ruin under various owners until Loft Candy bought it in 1931. Its fortunes improved in 1933
when, in the midst of the Depression, it doubled the size of its bottles to 12 ounces without raising the five−cent price. In
1939 Pepsi introduced the world's first radio jingle. Two years later Loft Candy merged with its Pepsi subsidiary and
became The Pepsi−Cola Company.
Donald Kendall, who became Pepsi−Cola's president in 1963, turned the firm's attention to young people ("The Pepsi
Generation"). It acquired Mountain Dew in 1964 and became PepsiCo in 1965, when it acquired Frito−Lay.
In 1972 PepsiCo agreed to distribute Stolichnaya vodka in the US in exchange for being the only Western firm allowed to
bottle soft drinks in the USSR. With the purchases of Pizza Hut (1977), Taco Bell (1978), and Kentucky Fried Chicken
(1986), it became a major force in the fast−food industry.
When Coca−Cola changed its formula in 1985, Pepsi had a short−lived victory in the cola wars (until the splashy return of
Coca−Cola classic). The rivalry was extended to ready−to−drink tea in 1991 when, in response to Coca−Cola's Nestea
venture with Nestlé, PepsiCo teamed up with Lipton (they now lead the market).
Between 1991 and 1996 PepsiCo aggressively expanded its overseas bottling operations. However, its efforts contrasted
markedly with Coca−Cola's well−oiled international distribution machine. The firm then shifted its attention to the
organization of its overseas network. Roger Enrico became CEO in 1996.
A year later PepsiCo spun off its $10 billion fast−food unit as TRICON Global Restaurants (now known as YUM!
Brands, Inc.), putting itself in a better position to sell its soft drinks at other restaurants. Also in 1997 it bought Borden's
Cracker Jack snack and Smith's snacks from the UK's United Biscuits.
In 1998 it bought Seagram's market−leading Tropicana juices (rival of Coca−Cola's Minute Maid) for $3.3 billion. The
firm sold a 65% stake in its new Pepsi Bottling Group to the public in 1999.
Its more than $13 billion purchase of The Quaker Oats Company in 2001 added the dominant Gatorade sports drink brand
(80% market share in the US) to its lineup. To make room for Gatorade, PepsiCo sold its competing All Sport energy
drink to The Monarch Company, an Atlanta−based beverage company, later that year.
Also in 2001, PepsiCo bought a majority of South Beach Beverage Co., maker of SoBe drinks (fruit blends, energy
drinks, teas, sports drinks). Later that year the company named president and COO Steve Reinemund as chairman and
CEO, Enrico as VC (where he remained through 2002), and CFO Indra Nooyi as president.
In 2002 the company combined Pepsi−Cola North America with the Gatorade, Tropicana, and Quaker businesses to form
PepsiCo Beverages and Foods North America. The company launched Pepsi Blue, a new berry−flavored cola, in 2002,
and Pepsi Vanilla in 2003, targeting thirsty teenagers in an attempt to energize the flat fizzy−drinks segment.
Like its rival Coca−Cola, PepsiCo found opportunities for growth overseas in 2003. However, claims surfaced that year
that both Coke and Pepsi bottled in India contained traces of DDT, malathion, and other pesticides that exceeded
government limits. Both Coke and Pepsi denied the reports in a joint press conference. Government labs cleared the colas,
saying the drinks were safe, but not before both soft drink companies saw sales dip by as much as 50% in a two−week
period.
Report Builder − PepsiCo, Inc. − Hoover's Online
23
Products/Operations
PepsiCo's soft drinks and snacks are sold in nearly 200 countries.
2003 Sales
$ mil. % of total
United States 17.4 64
Mexico
2.6
10
United Kingdom 1.5
6
Canada
1.1
4
Others
4.3
16
Total
26.9 100
2003 Sales
$ mil.
Frito−Lay North America
9.0
PepsiCo International
8.7
PepsiCo Beverages North America 7.7
Quaker Foods North America 1.5
Total
26.9
% of total
34
32
29
5
100
Selected Products and Brands:
Frito−Lay Snacks
• Cheese−flavored chips
• Cheetos
• Cookies
• Gamesa, Mexico; Grandma's
• Corn chips
• 3D's, Fritos
• Dips and salsa
• Frito−Lay
• Fried pork skins
• Baken−ets
• Onion−flavored rings
• Funyuns
• Popcorn
• Chester's
• Smartfood
• Potato chips
• Baked Lay's
• Lay's
• Munchos
• Ruffles
• Sabritas
• WOW!
• Potato crisps
• Smith's,
• Australia
Report Builder − PepsiCo, Inc. − Hoover's Online
24
• Walkers
• UK
• Pretzels
• Rold Gold
• Sweet snacks
• Alegro
• Mexico
• Tortilla chips
• Doritos
• Santitas
• Tostitos
• WOW!
• Other
• Cracker Jack
• SunChips
Juices
• Copella
• Dole, licensed
• Fruivita
• Hitchcock
• Loóza
• Tropicana
• Pure Premium
• Pure Tropics
• Season's Best
• South Beach Beverage (SoBe)
• Twister
• Nectars (Loóza)
Gatorade
• Sports drinks
• Gatorade
• Propel
• Other
• Cranston & Vale
• Juice Bowl
Pepsi−Cola
• Bottled water
• Aquafina
• Caffeinated citrus−flavored soda
• Mountain Dew
• Citrus−flavored soda
• Sierra Mist
• Coffee drinks
• Frappuccino, distributed
• Colas
• Diet Pepsi
Report Builder − PepsiCo, Inc. − Hoover's Online
25
• Pepsi Blue
• Pepsi Max
• Pepsi One
• Pepsi−Cola,
• Pepsi Twist
• Fruit−flavored soda
• Slice
• Root Beer
• Mug
• Teas
• Lipton Brisk
• Lipton Iced
• Unilever joint venture
• Other
• Mirinda
Quaker
• Cereals
• Cap'n Crunch
• Cruesli
• Honey Monster
• Life
• Quaker 100%
• Natural
• Quaker Instant
• Grits
• Quaker Oatmeal Squares
• Pancake Mix
• Aunt Jemima
• Pasta
• Golden Grain
• Mission
• Pasta Roni
• Snacks
• Quaker Chewy Granola Bars
• Quaker Rice Cakes
• Syrup
• Aunt Jemima
Archived Charts
North America
Other regions
Divested businesses
$ mil.
17,256
7,749
107
Total
25,112
2002 Sales
% of total
68
31
1
Frito−Lay North America
Frito−Lay International
Gatorade/Tropicana North America
100
2002 Sales
$ mil.
% of total
8,565
34
5,713
23
3,835
15
Report Builder − PepsiCo, Inc. − Hoover's Online
26
Pepsi−Cola North America
PepsiCo Beverages International
Quaker Foods North America
Divested businesses
Total
North America
Other regions
Divested businesses
$ mil.
17,256
7,749
107
Total
25,112
13
8
6
1
25,112
100
2002 Sales
% of total
68
31
1
100
Frito−Lay North America
Frito−Lay International
Gatorade/Tropicana North America
Pepsi−Cola North America
PepsiCo Beverages International
Quaker Foods North America
Total
3,365
2,036
1,491
107
2001 Sales
$ mil.
% of total
9,374
35
5,130
19
4,016
15
3,842
14
2,582
10
1,991
7
26,935
North America
International
$ mil.
18,215
8,720
Total
26,935
100
2001 Sales
% of total
68
32
100
Report Builder − PepsiCo, Inc. − Hoover's Online
27
Other Resources Available On Hoover's Online
News for PepsiCo (last 90 days)
Company Press Release Archive
Other Resources
• Headquarters Map
• SEC Filings
♦ 10−K Filings
• Stock Quote
• Stock Chart
• Earnings Estimates
• ValuEngine Analysis
• Annual Report
• Investor Relations
• Financial Data Definitions
• Market Data Definitions
• Comparison Data Definitions
• Historical Financials & Employees Definitions
Related Products From Our Trusted Partners
Buy Reports and Books
Additional Research On PepsiCo
• D&B Business/Credit Reports: PepsiCo, Inc.
(D&B, Feb 1, 2004, Business Reports)
• PepsiCo Inc Branch Report
• Manufacturing Branches
• Corporate Hierarchy
(Harris Company Reports, Aug 12, 2003, Business Reports)
• Quantitative Report for PEP
(ValuEngine, Inc., Jan 1, 2004, Business Reports)
• Bread & Cereal Production Deluxe Set
(Harris Industry Reports, Aug 12, 2003, Business Reports)
• Carbonated Beverages: Financial Analysis Profiles
(BizMiner, Dec 23, 2003, Business Reports)
• Breakfast Cereal Manufacturing in the US
(IBISWorld, Dec 6, 2003, Business Reports)
• Future Innovations In Snacking: Convergence and Competition
(Reuters Business Insight, Dec 1, 2001, Business Reports)
• Plunkett's Food Industry Almanac
(Plunkett Research, Ltd., May 6, 2003, Books)
Additional 3rd Party Libraries
Report Builder − PepsiCo, Inc. − Hoover's Online
28
Annual Financials
All amounts in millions of US Dollars
Income Statement
Dec 03
Dec 02
Dec 01
Revenue
26,971.0
25,112.0
26,935.0
Cost of Goods Sold
11,303.0
10,523.0
9,837.0
Gross Profit
15,668.0
14,589.0
17,098.0
58.1%
58.1%
63.5%
SG&A Expense
9,460.0
8,523.0
11,608.0
Depreciation & Amortization
1,221.0
1,112.0
1,082.0
Operating Income
4,987.0
4,954.0
4,408.0
Operating Margin
18.5%
19.7%
16.4%
Nonoperating Income
374.0
316.0
227.0
Nonoperating Expenses
163.0
178.0
219.0
Income Before Taxes
4,992.0
4,868.0
4,029.0
Income Taxes
1,424.0
1,555.0
1,367.0
Net Income After Taxes
3,568.0
3,313.0
2,662.0
Continuing Operations
3,568.0
3,313.0
2,662.0
0.0
0.0
0.0
Total Operations
3,568.0
3,313.0
2,662.0
Total Net Income
3,568.0
3,313.0
2,662.0
Net Profit Margin
13.2%
13.2%
9.9%
Diluted EPS from Continuing Operations ($)
2.05
1.85
1.47
Diluted EPS from Discontinued Operations ($)
0.00
0.00
0.00
Diluted EPS from Total Operations ($)
2.05
1.85
1.47
0.62
0.59
0.57
Dec 03
Dec 02
Dec 01
820.0
1,638.0
683.0
Net Receivables
2,830.0
2,531.0
2,142.0
Inventories
1,412.0
1,342.0
1,310.0
Gross Profit Margin
Discontinued Operations
Diluted EPS from Total Net Income ($)
Dividends per Share
Balance Sheet
Assets
Current Assets
Cash
Report Builder − PepsiCo, Inc. − Hoover's Online
29
Other Current Assets
1,868.0
902.0
1,718.0
Total Current Assets
6,930.0
6,413.0
5,853.0
Net Fixed Assets
7,828.0
7,390.0
6,876.0
Other Noncurrent Assets
10,569.0
9,671.0
8,966.0
Total Assets
25,327.0
23,474.0
21,695.0
Dec 03
Dec 02
Dec 01
Accounts Payable
5,213.0
4,998.0
4,461.0
Short−Term Debt
591.0
562.0
354.0
Other Current Liabilities
611.0
492.0
183.0
Total Current Liabilities
6,415.0
6,052.0
4,998.0
Long−Term Debt
1,702.0
2,187.0
2,651.0
Other Noncurrent Liabilities
4,075.0
4,226.0
3,876.0
13,431.0
14,176.0
13,047.0
Preferred Stock Equity
0.0
0.0
0.0
Common Stock Equity
11,896.0
9,298.0
8,648.0
Total Equity
11,896.0
9,298.0
8,648.0
Shares Outstanding (mil.)
1,705.0
1,722.0
1,756.0
Cash Flow Statement
Dec 03
Dec 02
Dec 01
Net Operating Cash Flow
4,328.0
4,627.0
4,201.0
Net Investing Cash Flow
(2,271.0)
(527.0)
(2,637.0)
Net Financing Cash Flow
(2,902.0)
(3,179.0)
(1,919.0)
Net Change in Cash
(818.0)
955.0
(355.0)
Depreciation & Amortization
1,221.0
1,112.0
1,082.0
Capital Expenditures
(1,345.0)
(1,788.0)
(1,756.0)
Cash Dividends Paid
Data Definitions
(1,070.0)
(1,041.0)
(994.0)
Liabilities and Shareholders' Equity
Current Liabilities
Total Liabilities
Shareholders' Equity
Some financial information provided by Media General Financial Services, Inc.
Report Builder − PepsiCo, Inc. − Hoover's Online
, Richmond, Virginia
30
Quarterly Financials
All amounts in millions of US Dollars except per share amounts.
Quarter
Quarter
Income Statement
Ending Dec 03 Ending Sep 03
Quarter Quarter Ending
Ending Jun 03
Mar 03
Quarter
Ending Dec 02
Revenue
8,073.0
6,830.0
6,538.0
5,530.0
7,457.0
Cost of Goods Sold
3,378.0
2,870.0
2,747.0
2,308.0
3,141.0
Gross Profit
4,695.0
3,960.0
3,791.0
3,222.0
4,316.0
58.2%
58.0%
58.0%
58.3%
57.9%
3,304.0
2,218.0
2,119.0
1,819.0
2,647.0
Depreciation & Amortization
405.0
280.0
280.0
256.0
360.0
Operating Income
986.0
1,462.0
1,392.0
1,147.0
1,309.0
Operating Margin
12.2%
21.4%
21.3%
20.7%
17.6%
Nonoperating Income
98.0
144.0
110.0
22.0
42.0
Nonoperating Expenses
51.0
38.0
37.0
37.0
62.0
Income Before Taxes
858.0
1,559.0
1,454.0
1,121.0
1,199.0
Income Taxes
153.0
482.0
445.0
344.0
394.0
Net Income After Taxes
705.0
1,077.0
1,009.0
777.0
805.0
Continuing Operations
705.0
1,077.0
1,009.0
777.0
805.0
0.0
0.0
0.0
0.0
0.0
Total Operations
705.0
1,077.0
1,009.0
777.0
805.0
Total Net Income
705.0
1,077.0
1,009.0
777.0
805.0
Net Profit Margin
8.7%
15.8%
15.4%
14.1%
10.8%
Diluted EPS from Continuing
Operations ($)
0.41
0.62
0.58
0.45
0.46
Diluted EPS from
Discontinued Operations ($)
0.00
0.00
0.00
0.00
0.00
Diluted EPS from Total
Operations ($)
0.41
0.62
0.58
0.45
0.46
0.00
0.16
0.16
0.30
0.00
Quarter
Ending Dec 03
Quarter
Ending Sep 03
Quarter Quarter Ending
Ending Jun 03
Mar 03
Quarter
Ending Dec 02
Gross Profit Margin
SG&A Expense
Discontinued Operations
Diluted EPS from Total Net
Income ($)
Dividends per Share
Balance Sheet
Assets
Report Builder − PepsiCo, Inc. − Hoover's Online
31
Current Assets
Cash
820.0
2,251.0
838.0
926.0
1,638.0
Net Receivables
2,830.0
3,176.0
3,084.0
2,823.0
2,531.0
Inventories
1,412.0
1,440.0
1,640.0
1,446.0
1,342.0
Other Current Assets
1,868.0
1,054.0
1,672.0
992.0
902.0
Total Current Assets
6,930.0
7,921.0
7,234.0
6,187.0
6,413.0
Net Fixed Assets
7,828.0
7,600.0
7,646.0
7,443.0
7,390.0
Other Noncurrent Assets
10,569.0
9,760.0
9,866.0
9,608.0
9,671.0
Total Assets
25,327.0
25,281.0
24,746.0
23,238.0
23,474.0
Quarter
Ending Dec 03
Quarter
Ending Sep 03
Quarter Quarter Ending
Ending Jun 03
Mar 03
Quarter
Ending Dec 02
Accounts Payable
5,213.0
4,878.0
4,870.0
4,587.0
4,998.0
Short−Term Debt
591.0
197.0
262.0
241.0
562.0
Other Current Liabilities
611.0
891.0
907.0
689.0
492.0
Total Current Liabilities
6,415.0
5,966.0
6,039.0
5,517.0
6,052.0
Long−Term Debt
1,702.0
2,080.0
2,049.0
2,202.0
2,187.0
Other Noncurrent Liabilities
4,075.0
4,421.0
4,347.0
4,283.0
4,226.0
13,431.0
14,361.0
14,109.0
13,702.0
14,176.0
Preferred Stock Equity
0.0
0.0
0.0
0.0
0.0
Common Stock Equity
11,896.0
10,920.0
10,637.0
9,536.0
9,298.0
Total Equity
11,896.0
10,920.0
10,637.0
9,536.0
9,298.0
1,705.0
1,717.0
1,722.0
1,718.0
1,722.0
Quarter
Ending Dec 03
Quarter
Ending Sep 03
Quarter Quarter Ending
Ending Jun 03
Mar 03
Quarter
Ending Dec 02
Net Operating Cash Flow
4,328.0
3,527.0
1,699.0
422.0
4,627.0
Net Investing Cash Flow
(2,271.0)
(992.0)
(1,289.0)
(347.0)
(527.0)
Net Financing Cash Flow
(2,902.0)
(1,907.0)
(1,235.0)
(796.0)
(3,179.0)
(818.0)
613.0
(800.0)
(712.0)
955.0
405.0
280.0
280.0
256.0
360.0
(1,345.0)
(885.0)
(594.0)
(315.0)
(1,788.0)
Liabilities and
Shareholders' Equity
Current Liabilities
Total Liabilities
Shareholders' Equity
Shares Outstanding (mil.)
Cumulative Cash Flow
Statement
Net Change in Cash
Depreciation & Amortization
Capital Expenditures
Report Builder − PepsiCo, Inc. − Hoover's Online
32
Cash Dividends Paid
(1,070.0)
(795.0)
(518.0)
(260.0)
(1,041.0)
Data Definitions
Some financial information provided by Media General Financial Services, Inc.
Report Builder − PepsiCo, Inc. − Hoover's Online
, Richmond, Virginia
33
Historical Financials & Employees
Income Statement
Year
Revenue
($ mil.)
Net Income
($ mil.)
Net Profit
Margin
Employees
Dec 03
26,971.0
3,568.0
13.2%
−−
Dec 02
25,112.0
3,313.0
13.2%
142,000
Dec 01
26,935.0
2,662.0
9.9%
143,000
Dec 00
20,438.0
2,183.0
10.7%
124,000
Dec 99
20,367.0
2,050.0
10.1%
118,000
Dec 98
22,348.0
1,993.0
8.9%
150,000
Dec 97
20,917.0
2,142.0
10.2%
142,000
Dec 96
31,645.0
1,149.0
3.6%
486,000
Dec 95
30,421.0
1,606.0
5.3%
480,000
Dec 94
28,472.4
1,752.0
6.2%
471,000
Stock History
Stock Price ($)
Year
P/E
Per Share ($)
FY
High
FY
Low
FY
Close
High
Low
Earns.
Div.
Book
Value
Dec 03
48.9
36.2
46.6
23.8
17.7
2.0
0.6
7.0
Dec 02
53.5
34.0
42.2
28.9
18.4
1.9
0.6
5.4
Dec 01
50.5
40.2
48.7
34.3
27.4
1.5
0.6
4.9
Dec 00
49.9
29.7
49.6
33.7
20.1
1.5
0.6
5.0
Dec 99
42.6
30.1
35.2
31.1
22.0
1.4
0.5
4.7
Dec 98
44.8
27.6
40.9
34.2
21.0
1.3
0.5
4.4
Dec 97
41.3
28.6
36.2
30.4
21.1
1.4
0.5
4.6
Dec 96
35.9
27.2
29.2
49.8
37.8
0.7
0.4
4.2
Dec 95
29.4
16.9
27.9
29.4
16.9
1.0
0.4
4.6
Dec 94
20.6
14.6
18.1
24.2
17.2
0.9
0.3
4.3
2003 Year−End Financials
Debt ratio
14.3%
Return on equity
30.0%
Cash ($ mil.)
820.0
Current ratio
1.08
Long−term debt ($ mil.)
1,702.0
Report Builder − PepsiCo, Inc. − Hoover's Online
34
Shares Outstanding (mil.)
1,705.0
Dividend yield
1.3%
Dividend payout
30.2%
Market value ($ mil.)
79,487.1
Data Definitions
Some financial information provided by Media General Financial Services, Inc.
Report Builder − PepsiCo, Inc. − Hoover's Online
, Richmond, Virginia
35
Market Data
Current Information
Last Close 10−Mar−2004
$52.24 Price/Sales Ratio
3.31
52−Week High
$53.00 Price/Book Ratio
7.51
52−Week Low
$38.06 Price/Earnings Ratio
60−Month Beta
25.48
0.4 Price/Cash Flow Ratio
Market Value (mil.)
Shares Outstanding (mil.)
Dividend Rate
18.66
$89,343.3 Return on Assets
14.1%
1,710.2 Return on Equity
30.0%
0.64 Current Ratio
1.08
Dividend Yield
1.2% Long−Term Debt/Equity
0.14
# of Institutional Holders
2,895 % Owned by Institutions
66.1%
Latest Short Interest Ratio
Growth Rates
Revenue Growth
EPS Growth
Dividend Growth
1.90 Latest Net Insider Transactions
0.00
12 Month
36 Month
60 Month
7.4%
7.9%
5.4%
10.8%
12.8%
9.3%
5.1%
4.0%
3.8%
Data Definitions
Some financial information provided by Media General Financial Services, Inc.
Report Builder − PepsiCo, Inc. − Hoover's Online
, Richmond, Virginia
36
Comparison Data
Company
Industry1
Market2
Gross Profit Margin
58.09%
54.56%
47.92%
Pre−Tax Profit Margin
18.51%
15.00%
5.80%
Net Profit Margin
13.23%
10.87%
2.87%
Return on Equity
30.0%
24.6%
5.7%
Return on Assets
14.1%
9.1%
0.9%
Return on Invested Capital
26.2%
15.2%
2.8%
Company
Industry1
Market2
3.31
2.76
1.43
25.48
25.60
50.09
7.51
6.25
2.84
18.66
17.45
15.76
Company
Industry1
Market2
37.77
38.57
59.48
Inventory Turnover
8.2
8.0
7.5
Days Cost of Goods Sold in Inventory
44
45
48
Asset Turnover
1.1
0.9
0.3
10.1
9.5
6.2
28.5%
26.6%
−−
Company
Industry1
Market2
1.08
1.02
1.39
0.8
0.7
1.0
Leverage Ratio
2.13
2.71
6.02
Total Debt/Equity
0.19
0.78
1.43
Interest Coverage
31.60
9.10
2.00
Company
Industry1
Market2
15.77
15.50
19.61
Fully Diluted Earnings Per Share
from Total Operations
2.05
1.67
0.56
Dividends Per Share
0.62
0.62
0.42
Cash Flow Per Share
2.80
2.45
1.78
Working Capital Per Share
0.30
0.07
2.14
Long−Term Debt Per Share
1.00
4.25
10.17
Book Value Per Share
6.96
6.84
9.89
Profitability
Valuation
Price/Sales Ratio
Price/Earnings Ratio
Price/Book Ratio
Price/Cash Flow Ratio
Operations
Days of Sales Outstanding
Net Receivables Turnover Flow
Effective Tax Rate
Financial
Current Ratio
Quick Ratio
Per Share Data ($)
Revenue Per Share
Report Builder − PepsiCo, Inc. − Hoover's Online
37
Total Assets Per Share
14.81
18.55
59.58
Company
Industry1
Market2
12−Month Revenue Growth
7.4%
3.6%
4.3%
12−Month Net Income Growth
7.7%
6.4%
70.2%
10.8%
7.7%
75.0%
12−Month Dividend Growth
5.1%
6.9%
2.4%
36−Month Revenue Growth
7.9%
5.5%
1.7%
36−Month Net Income Growth
18.4%
20.9%
(18.9%)
36−Month EPS Growth
12.8%
18.1%
(19.7%)
4.0%
7.2%
1.5%
Growth
12−Month EPS Growth
36−Month Dividend Growth
1Industry:
Beverages−Soft Drinks
Industry classifications
are from Media General Financial Services, Inc.
2
.
Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.
Data Definitions
Some financial information provided by Media General Financial Services, Inc.
Report Builder − PepsiCo, Inc. − Hoover's Online
, Richmond, Virginia
38
Competitive Landscape
KEY: Best of Group. Companies listed are Top Competitors.
Cadbury
Coca−Cola Kraft Foods
Schweppes
Key Numbers
PepsiCo
Annual Sales ($mil.)
26,971.0
111,487.0
21,044.0
31,010.0
−−
−−
49,000
−−
Market Value ($mil.)
89,343.3
16,515.3
122,018.7
59,002.1
Profitability
PepsiCo
Employees
Cadbury
Coca−Cola Kraft Foods Industry2 Market3
Schweppes
Gross Profit Margin
58.09%
−−
67.15%
43.13%
54.56% 47.92%
Pre−Tax Profit Margin
18.51%
−−
26.11%
17.64%
15.00%
5.80%
Net Profit Margin
13.23%
1.03%
20.66%
11.21%
10.87%
2.87%
Return on Equity
30.0%
22.2%
30.9%
12.5%
24.6%
5.7%
Return on Assets
14.1%
6.4%
15.9%
6.0%
9.1%
0.9%
Return on Invested Capital
26.2%
12.4%
26.2%
8.8%
15.2%
2.8%
Valuation
Price/Sales Ratio
Price/Earnings Ratio
Price/Book Ratio
Price/Cash Flow Ratio
Operations
Days of Sales Outstanding
PepsiCo
Cadbury
Coca−Cola Kraft Foods Industry2 Market3
Schweppes
3.31
0.15
5.80
1.90
2.76
1.43
25.48
14.41
28.19
16.99
25.60
50.09
7.51
3.20
8.66
2.13
6.25
2.84
18.66
−−
23.43
13.66
17.45
15.76
PepsiCo
Cadbury
Coca−Cola Kraft Foods Industry2 Market3
Schweppes
37.77
7.39
35.77
35.76
38.57
59.48
Inventory Turnover
8.2
−−
5.4
4.9
8.0
7.5
Days Cost of Goods Sold in
Inventory
44
−−
66
73
45
48
Asset Turnover
1.1
7.6
0.8
0.5
0.9
0.3
10.1
56.9
10.0
10.0
9.5
6.2
28.5%
−−
20.9%
35.2%
26.6%
−−
Net Receivables Turnover Flow
Effective Tax Rate
Financial
Current Ratio
PepsiCo
Cadbury
Coca−Cola Kraft Foods Industry2 Market3
Schweppes
1.08
0.55
1.06
1.03
1.02
1.39
0.8
0.4
0.7
0.5
0.7
1.0
Leverage Ratio
2.13
3.48
1.94
2.10
2.71
6.02
Total Debt/Equity
0.19
1.66
0.38
0.49
0.78
1.43
Quick Ratio
Report Builder − PepsiCo, Inc. − Hoover's Online
39
Interest Coverage
31.60
Per Share Data ($)
PepsiCo
Revenue Per Share
−−
31.90
8.90
9.10
2.00
Cadbury
Coca−Cola Kraft Foods Industry2 Market3
Schweppes
15.77
221.64
8.61
17.95
15.50
19.61
Fully Diluted Earnings Per Share
from Total Operations
2.05
2.28
1.77
2.01
1.67
0.56
Dividends Per Share
0.62
0.82
0.88
0.63
0.62
0.42
Cash Flow Per Share
2.80
−−
2.13
2.50
2.45
1.78
Working Capital Per Share
0.30
(6.78)
0.21
0.12
0.07
2.14
Long−Term Debt Per Share
1.00
8.09
1.03
6.74
4.25
10.17
Book Value Per Share
6.96
10.27
5.76
16.06
6.84
9.89
Total Assets Per Share
14.81
35.71
11.18
33.70
18.55
59.58
Growth
PepsiCo
Cadbury
Coca−Cola Kraft Foods Industry2 Market3
Schweppes
12−Month Revenue Growth
7.4%
1,205.8%
7.6%
4.3%
3.6%
4.3%
12−Month Net Income Growth
7.7%
29.9%
9.3%
2.4%
6.4%
70.2%
10.8%
30.3%
10.6%
2.6%
7.7%
75.0%
12−Month Dividend Growth
5.1%
12.3%
10.0%
16.7%
6.9%
2.4%
36−Month Revenue Growth
7.9%
132.4%
0.6%
3.4%
5.5%
1.7%
36−Month Net Income Growth
18.4%
15.2%
23.1%
25.2%
20.9% (18.9%)
36−Month EPS Growth
12.8%
15.5%
23.3%
17.9%
18.1% (19.7%)
4.0%
5.0%
9.2%
−−
12−Month EPS Growth
36−Month Dividend Growth
7.2%
1.5%
1
Data unavailable.
Industry: Beverages−Soft Drinks
Industry classifications
are from Media General Financial Services, Inc.
.
3 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.
2
Data Definitions
Some financial information provided by Media General Financial Services, Inc.
Report Builder − PepsiCo, Inc. − Hoover's Online
, Richmond, Virginia
40
Copyright 2004, Hoover's, Inc.
Report Builder − PepsiCo, Inc. − Hoover's Online
41