PEPSICO a Solid Investment.
By: Alexandra Fell
For: Dr. Guendo0
Yorkville University
July 2014
BUSI 1023

A pharmacist named Caleb Bradham invented Pepsi in 1893, it was originally named “Brad’s Drink”, before changing to it’s widely recognized name Pepsi-Cola, in 1898. Although Pepsi has faced many tough financial times historically, two bankruptcies and three offers to Coca-Cola to purchase the company between 1922-1933, the company has always managed to reinvent itself, and carve out its own market share, and today is not any different. In order for PepsiCo to see continued success they must be able to expand into different markets, increasing their consumer base and maximizing profits.
PepsiCo is broken down into these four operating units:
PepsiCo Americas Foods, which includes food and snack businesses in North America and Latin America.
PepsiCo Americas Beverages, which includes all of their North American and Latin American beverage businesses.
PepsiCo Europe.
PepsiCo Asia, Middle East and Africa.
PepsiCo’s main competitors in the non-alcoholic beverage industry are the Coca-Cola Company and Dr. Pepper Snapple Group Inc, their main competitor and long time rival is Coca-Cola. Coca-Cola has the larger market share of carbonated soda drinks, however; PepsiCo holds strong with its larger market share in liquid refreshment beverages like Gatorade and Tropicana. PepsiCo also has a leadership position in the snack industry world wide, against other food and beverage competitors such as: ConAgra Foods, Inc., DPSG, Kellogg Company, Kraft Foods Group, Inc., International, Inc., Monster Beverage Corporation, Nestlé S.A., Red Bull GmbH and Snyder’s-Lance, Inc. They also receive competition from regional and local companies in many markets.
Although Coke has remained victorious as the world’s number one cola of choice it does not mean it is the