...in Tingyi and PepsiCo Strategic Alliance in China The appended press release is issued in connection with the progress in Tingyi (Cayman Islands) Holding Corp. (“Tingyi Holding”) and PepsiCo strategic alliance in China. The information in the press release may be price sensitive. This announcement containing the press release is accordingly being issued pursuant to Part XIVA of the Securities and Futures Ordinance. This announcement is issued by Tingyi Holding pursuant to Part XIVA of the Securities and Futures Ordinance. Investors are advised to exercise caution in dealing in shares of Tingyi Holding. As at the date of this announcement, the Directors of Tingyi Holding are: Executive Directors: Mr. WEI Ing-Chou, Mr. Junichiro IDA, Mr. Ryo YOSHIZAWA, Mr. WEI Ying-Chiao, Mr. WU Chung-Yi, Mr. Teruo NAGANO; and Mr. HSU Shin-Chun, Mr. LEE Tiong-Hock, Mr. Hiromu FUKADA By order of the Board Tingyi (Cayman Islands) Holding Corp. Ip Pui Sum Company Secretary Tianjin, 22nd October 2013 * For identification purposes only Independent Non-executive Directors: Tingyi- PepsiCo Strategic Alliance in China Progressing Well - Tingyi manufacturing network has accelerated national distribution of PepsiCo beverage brands throughout China More than 35 Tingyi manufacturing lines added to produce PepsiCo beverage brands The strategic alliance brings new products quicker to the market, offers increased choices for consumers; The alliance creates values for Tingyi and PepsiCo...
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...what is referred to as vertical integration, which takes on two forms: forward and backward integration. Forward integration focuses on the manner in which a company oversees its product distribution. On the other hand, the backward form concentrates on how a company regulates its goods or supplies. 5.1.1 Forward integration Forward integration is a type of vertical integration which a supplier acquires a manufacturer or a manufacturer acquires a distributor. Businesses engage in forward integration either to generate a higher margin from a key input which it owns or produces or to better market its products and increase its profitability. Dr. Gerhard Bester, an Agricultural Research and Development Director, our aim is to ensure PepsiCo has continued access to the key agricultural raw materials necessary to supply growing consumer needs, while respecting the environment and communities involved in producing those raw materials. We strive to make farming more productive while...
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...shareholder ambition, and the belief that addressing social and environmental issues can also deliver on their aim and plan consisting of human, environmental, and talent sustainability. The following paper will discuss a comparison and contrast of three potential financial outcomes from PepsiCo; Increase in Sales, Decrease in Sales, and Effects on PepsiCo stock due to increase and decrease in Sales. Financial Outcome: Increase in Sales PepsiCo runs its global operation in an efficient and profitable manner. The company is the largest food and beverage business in North America, and the second largest in the world. What separates PepsiCo from the rest of the competition are brand identity, creativity, and excellence in execution. PepsiCo had a profitable 2011, and all indicators point to a successful 2012 leading to increased shareholder wealth. In 2011, PepsiCo net revenue grew 14% on a core basis, along with core division operating profits raising 7% over last year. Core earnings also grew 7% in 2011, with $5.6 billion returned to shareholders. The company will continue to increase sales with by expanding core brands, and focusing on target markets with other branding. PepsiCo currently has 12 core brands and 30 other brands. These brands are split between the beverage and food industries. In the...
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...The Coca-Cola Company July 24, 2011 CONTENTS Abstract……………………………………………………………………………………………3 Coca-Cola: An Introduction.……………………………………………………………………....4 Financial Analysis………………..……………………………………………………………..…6 Competition Analysis: Pepsi………………………………………………………………………9 Recommendations………………………………………………………………………………..13 Conclusion…………………………………………………………………………………….…15 References………………………………………………………………………………………..16 Abstract Many international corporations began as small domestic ventures. As businesses grew, corporations saw the many possibilities brought on by expanding operations. Companies began to expand by opening franchises in various cities, yet they knew there was more potential for success if they were to expand their operations even further. Thousands of companies, such as Coca-Cola, chose cities internationally to gain more revenue. The purpose of a corporation is to maximize profits for all shareholders involved. Opening firms abroad allowed Coca-Cola to gain worldwide recognition, which gave them a competitive advantage over other soft drink makers. Now, Cola-Cola is not only recognized, but it is one of the most consumed soft drinks both within the United States and in cities across the globe. Coca-Cola took a huge risk in expanding their operations. However, their success proves that multinational corporations need to choose the right market to venture into and choose marketing techniques that appeal to their consumers. Coca-Cola: An Introduction In 1866...
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...PepsiCo 2005 Case Analysis June 17, 2009 I. Definition of the Issue The PepsiCo-2005 case study has several issues revolving it. It has the internal issue that PepsiCo has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. Its external issues consist of its products as reaching maturity stage industry wise and its divisions, except Frito-Lay North America (FLNA), fail to rank highest in its respective market segments. Division wise, the company holds a large share of each respective market, but over-all the company sustains a flat growth rate and fails to meet its growth goal. In respect to this, it can be seen that the real issue in this case is the need of a strategy to sustain a compound annual growth rate (CAGR) in earnings per share of 15 percent per year. This paper aims to develop a three-year strategic plan for PEPSICO that can best ensure this growth through this decade. II. Objectives The paper’s objectives include designing of alternatives that may aid its development for a sound strategy in response to the issue through a quantitative analysis. The paper would also include an analysis of each alternative. From the generated alternatives, the paper would focus on one that would seem to best apply to the given circumstances. The paper also includes a potential problem analysis to aid in strengthening the strategy’s defenses and enables the company to predict and anticipate...
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...PepsiCo 2005 Case Analysis June 17, 2009 I. Definition of the Issue The PepsiCo-2005 case study has several issues revolving it. It has the internal issue that PepsiCo has not been able to consistently meet its growth goal of 15+ percent annual increase in earnings for the last 10 years. Its external issues consist of its products as reaching maturity stage industry wise and its divisions, except Frito-Lay North America (FLNA), fail to rank highest in its respective market segments. Division wise, the company holds a large share of each respective market, but over-all the company sustains a flat growth rate and fails to meet its growth goal. In respect to this, it can be seen that the real issue in this case is the need of a strategy to sustain a compound annual growth rate (CAGR) in earnings per share of 15 percent per year. This paper aims to develop a three-year strategic plan for PEPSICO that can best ensure this growth through this decade. II. Objectives The paper’s objectives include designing of alternatives that may aid its development for a sound strategy in response to the issue through a quantitative analysis. The paper would also include an analysis of each alternative. From the generated alternatives, the paper would focus on one that would seem to best apply to the given circumstances. The paper also includes a potential problem analysis to aid in strengthening the strategy’s defenses and enables the company to predict and anticipate...
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...The primary purpose of this report is to identify and analyze the two dominant companies in the soft drink industry and determine the strongest performer as an investment opportunity. Coca-Cola and PepsiCo have been competing in the soft drink sector for over a century and both companies enjoy a high degree of brand consciousness globally. Coca-Cola has, until recently, outpaced its number two rival considerably, both in the U.S. and overseas. I will compare the two companies using the following criteria: (a) comparative statistics and relevant figures affecting probability, (b) key ratios, and (c) the weighted average cost of capital (WACC). Comparative Statistics: Relevant Figures Affecting Profitability For the purpose of my report, all relevant financial data on both Coca-Cola and PepsiCo was derived from the reliable Yahoo Finance and Morningstar website and the accompanying 10-k reports. Coca-Cola is the largest manufacturer and distributor of non-alcoholic beverage concentrates and syrups in the world. Additionally, the company has ownership interests in numerous bottling and canning operations. Furthermore, Coca-Cola groups its products into eight business divisions including: Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling Investments, and Corporate. Finished beverage products are sold in more than 200 countries worldwide. Coca-Cola's major products are comprised of: Coca-Cola, Crush, Sprite, Fanta, Diet Coke, POWERade, Fruitopia...
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...Coca-Cola to compete for a larger share of the market. The intense rivalry between Coca-Cola and Pepsi Cola have been going on since the late 1800’s (Economy Watch, 2011); when Pepsi Cola was born from a “combination of: carbonated water, kola nuts, vanilla, and rare oils” (Pepsi Legacy Book, p.7. 2005). This paper focuses on the diversified strategies of both Pepsi Cola and Coca-Cola in their efforts to gain the largest share of the market and the recommendations to capture a larger share of the market. Vision and Mission Pepsi Cola The vision of Pepsi Cola is “to put into action through programs and focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company” (PepsiCo-purpose, n.d.). One can...
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...You and Better for You Combined 20 % Good for You Pepsi, Doritos, Power of One Retailer Alliance Strategy Mountain Dew Product formulation based on consumer and Lays demand How to get Consumers buy more than one Pepsi product per visit New product introduction based on recommendations by retailers. “Fun For You” Industry Attractiveness Measure Weight PepsiCo North America 10 7 7 7 8 10 4 PepsiCo International 10 5 5 8 7 9 5 Frito-Lay 8 5 5 7 6 5 6 Quaker Oats 8 6 6 7 6 5 5 Market Size and growth .1 rate Intensity of Competition Emerging Opportunities and Threats Cross-Industry Strategic fits Resource Requirements Seasonal and Cyclical Influences Competitive Strength of PepsiCo’s ØMarketing – advertising approach and further segmenting the drink sector ØProduct diversity – Frito Lay snacks, Pepsi products, Quaker healthy snacks ØBrand loyalty – consumers loyalty Competitive Strength/Market Position Importance Weight 1. Relative market share 0.15 2. Cost relative to competitor cost 0.20 Competitive Strength Scores for each SBU Frito Lay 9 5 6 9 7 8 7 8 7 . 45 8 8 9 6 7 7 7 7.9 4 6 9 7 9 8 8 Pepsi PepsiCo Quaker Co Intl NA 9 7 4 3 4 8 7 10 8 10 6 . 55 3. Ability to match or beat rivals on 0.05 key attributes 4. Ability to...
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...inventor of the Pepsi-Cola soft drink. PepsiCo became a multinational beverage and snack food company in 1965 when Pepsi-Cola merged with Frito-Lay. Since the 1965 merger PepsiCo has expanded its operations by acquiring Quaker-Oats, Tropicana, and Gatorade brands. With sales of $66.86 billion in 2014 and with products sold in over 200 countries, PepsiCo is one of the leading food and beverage companies in the world (PepsiCo, 2014). 1.2 PepsiCo’s Industry The beverage and snack food industries are both in the mature stage in their life cycles, and companies in these industries largely depend on product innovation, brand recognition, and low prices to remain competitive. Like all companies PepsiCo faces risk of increases in operating expenses and decreases in net income due to market risk. Companies in PepsiCo’s industry have been forced to expand its product offerings into healthy foods and drinks due to an insurgent health and wellness in American culture. 1.3 PepsiCo’s Competitors PepsiCo’s top competitors consist of The Coca-Cola Company, Dr Pepper Snapple Group, and Nestle; additionally, because PepsiCo is a multinational company it must also compete with countless local snack and beverage companies across the globe. Coca-Cola has been viewed as PepsiCo’s main rival for around 100 years, and the competition between the two companies has had a cultural impact in the United States dubbed “The Cola Wars”. In 2014 the revenues from PepsiCo, Coca-Cola, and Dr Pepper Snapple Group...
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...Company Profile The summer of 1983 * It was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices and syrups, trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations, inventing the beverage now known around the world as Pepsi-Cola. Pepsi’s Beginnings * Bradham had soda fountain in his drugstore, where he served his customers refreshing drinks that he created himself. * From “Brad’s Drink” to “Pepsi-Cola” * At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon, Bradham recognized that a greater opportunity existed – to bottle Pepsi-Cola so that people everywhere could enjoy it. Pepsi-Cola in the Philippines * Pepsi-Cola Products Philippines, Inc. (PIP) primarily engages in manufacturing, sale and distribution of carbonated softdrinks and non-carbonated beverages to retail, wholesale to restaurants and bar trades. * Pepsi was imported from the U.S. until the first bottling plant was put up in Quezon City in 1947. * The company became a Filipino corporation in 1985 when the Pepsi-Cola Distributors of the Philippines Inc. led by the Escaler clan acquired franchising and bottling rights. Mission statement “Our mission is to be the world’s premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we...
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...COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD) March 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Carbonates 169.5 billion litres Fruit/ Vegetable Juice 62 billion litres Sports and Bottled Sports and Energy Drinks Water Energy Drinks 205.1 billion15 billion litres 16.2 billion litres Concentrateslitres 43 billion litres Concentrates 43.7 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe...
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...COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD) March 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Fruit/ Sports and Carbonates Bottled SportsWater and Vegetable Energy Drinks 169.5 billion Energy Drinks Juice 205.1 billion15 billion litres litres litres 16.2 billion 62 billion litres Concentrateslitres 43 billion litres Concentrates RTD Tea RTD Coffee 43.7 billion 30.1 billion 4.5 billion litres litres litres Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible...
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...SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Carbonates 169.5 billion litres Fruit/ Vegetable Juice 62 billion litres Sports and Bottled Sports and Energy Drinks Water Energy Drinks 205.1 billion15 billion litres 16.2 billion litres Concentrateslitres 43 billion litres Concentrates 43.7 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe and slow economic recovery in the US. It is actively expanding in low...
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...The Pepsi Bottling Group, Inc. (PBG) is the world's largest manufacturer, seller, and distributor of Pepsi-Cola beverages. Separated from parent PepsiCo, Inc. in 1999, it accounted that year for 55 percent of Pepsi-Cola beverages sold in the United States and 32 percent worldwide. The company delivers its products directly to stores without using wholesalers or other middlemen. In addition to its extensive production and distribution facilities, PBG leases and operates about 20,000 vehicles and owns more than 1.1 million soft drink dispensing and vending machines. PepsiCo holds a controlling interest in the firm. | The Coca Cola history extends back to 1885, when John Pemberton invented the original recipe for a new cocawine. Pemberton developed Coca-Cola, a non-alcoholic version of his original cocawine, when Fulton County passed prohibition legislation. Carbonated water was added later by accident when Pemberton was mixing drinks for a friend and incidentally included it. His friends loved the new taste, so he altered the original formula to incorporate it. | Pepsi - International Directory of Company Histories, Vol. 40. St. James Press, 2001. (http://www.fundinguniverse.com/company-histories/the-pepsi-bottling-group-inc-history/). Major Suppliers Pepsi Cola | Coca-Cola | PolandEgyptUnited Arab EmiratesCanada | Poland China Bulgaria Egypt Hong Kong Canada | Coca-Cola Stock Analysis The company has managed to deliver a 9.7% annual increase in EPS since 2002. Analysts...
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