The Final Project Pepsico

Week 10: PepsiCo Contribution Analysis

Bernard J. Carroll

Strayer University

Graduate Accounting Capstone

ACC 599

The History

PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic response convinced him that he had created a commercially viable product. For 20 years, 'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a dilemma; the crucial decision he made turned out to be the wrong one and he was forced to sell. But his successors fared no better and it was not until the end of the 1930s that Pepsi-Cola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level was almost entirely the result of its management style and the phenomenal success of its television advertising.

Divisions

PepsiCo is the leading snack and soft drink company in the world. PepsiCo produces a variety of carbonated and non-carbonated drinks and a wide range of snacks. The organization has four divisions:

• Frito-Lay North America

• PepsiCo Beverages North America

• Latin America Foods

• Quaker Foods North America

• Europe

• Asia, Middle East & Africa

The North American division operates in the United States and Canada. The international divisions are in about 200 countries and the largest being in Mexico and the United Kingdom (PepsiCo, 2010).

Frito-Lay North America

FLNA makes, markets, sells and distributes branded snack foods. These foods include Lay's potato chips, Doritos tortilla chips, Cheetos cheese flavored...