Financial Analysis – PepsiCo Inc.

In 1893, a pharmacist named Caleb Bradham invented a tonic, which he called "Brad's drink". This drink was carbonated and contained sugar, vanilla, rare oils, pepsin, and cola nuts. Bradham sold his drink at his pharmacy's soda fountain and by 1898, "Brad's drink" had been renamed to Pepsi Cola (Zokawics, 2007). 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.
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from just the Pepsi product to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001, which also added the Gatorade brand to its portfolio as well.
As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the company’s products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion (Love, 2011). Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business. Since 2006, Indra Krishnamurthy Nooyi became the chief executive of PepsiCo, and the company employed approximately 285,000 people