COMPANY INTRODUCTION

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 COMPANY INTRODUCTION

PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues
of more than $32 billion and more than 157,000 employees.

The company consists of Frito-Lay North America, PepsiCo Beverages North

America, PepsiCo International and Quaker Foods North America. PepsiCo brands
are available in nearly 200 countries and territories and generate sales at the retail
level of about $85 billion.

Many of PepsiCo's brand names are more than 100-years-old, but the corporation
is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-
Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The
Quaker Oats Company, including Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs and preference --
from fun-for-you items to product choices that contribute to healthier lifestyles.

PepsiCo’s mission is “To be the world's premier consumer products company

focused on convenient foods and beverages. We seek to produce healthy financial
rewards to investors as we provide opportunities for growth and enrichment to our
employees, our business partners and the communities in which we operate. And
in everything we do, we strive for honesty, fairness and integrity.”

Shareholders

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock
Exchange in the United States. The company is also listed on the Amsterdam,
Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash
dividends since the corporation was founded.

Corporate Citizenship

At PepsiCo, we believe that as a corporate citizen, we have a responsibility to

contribute to the quality of life in our communities. This philosophy is expressed

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 in our sustainability vision which states: “PepsiCo’s responsibility is to continually
improve all aspects of the world in which we operate – environment, social,
economic -- creating a better tomorrow than today.”

Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder
value by making PepsiCo a truly sustainable company.

PEPSICO HEADQUARTERS

PepsiCo World Headquarters is located in Purchase, New York, approximately 45

minutes from New York City. The seven building headquarters complex was designed
by Edward Durrell Stone, one of America’s foremost architects. The building occupies
10 acres of a 144 – acre complex that includes the Donate M. Kendall Sculpture
Gardens, a world acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and features works
by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder,
Alberto Giacometti, Arnaldo Pomodoro and Class Olden berg. The gardens were
originally designed by the world famous garden planner, Russelll Page, and have been
extended by Francois Goffinet. The grounds are open to the public, and a visitor’s
booth is in operation during the spring and summer.

THE COMPANY PROFILE: PEPSI CO.

Caleb Bradham a New Bern N.C druggist who formulated Pepsi Cola founded

Pepsi Cola Beverage business at turn of the century. Pepsi Cola Company now

produces and markets nearly 200 refreshment beverages to retail, restaurants and food

service customers in more then 190 countries and territories around the world and

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generates revenue of over 18 billion dollars PepsiCo World Headquarters is located in

Purchase, New York.

Pepsi Co. is the world leader in the food chain business. It consists of many

companies amongst which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food

international, Pizza-hut, KFC and Taco bell. The group is presently into three most

profitable businesses namely, Beverages Snacks foods and Restaurants.

The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and

other brands worldwide and 7UP outside the U.S.market. They are positioned in close

competition with Coca Cola inc. of USA.

The Snacks food divisions manufacture and distribute and markets others

snacks worldwide.

The restaurant segment primarily consists of the operations of the

worldwide Pizza-Hut, Taco bell and KFC chains PFS, PepsiCo’s restaurant distribution

operation, supplies to Company owned and Franchise restaurants in the U.S.

When Coca Cola changed its formula in 1985, Pepsi Stepped up its competition

with its long time archrival claiming victory in the Cola-wars. Coke and Pepsi

expended their rivalry to tea in 1991 when Pepsi formed a venture with No.1 Lipton in

response to Coke’s announced venture with Nestle (Nestea).

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 “Pepsi Co is going blue”. This was the new color adopted by the company to

strengthen its brand globally. Also the company is changed colors from Generation X

to GENERATION NEXT.

Although Pepsi holdings over the years have become diverse in such fields as

the Snacks industry and Restaurants industry, this portfolio will discuss its core

business and its highly successful business of Beverages. The soft drink industry

customer base is probably the widest and deepest base in a world that is flooded with

some many categories. According to Beverage Digest the customer base for soft drinks

is a whopping 95% of regular users in the United States. This represents a large field of

potential customers for Pepsi Cola.

Pepsi prefers to segment itself as the beverage choice of the “New

Generation”, “Generation Next”, or just as the “Pepsi Generation”. These

terms adopted in Pepsi’s advertising campaigns are referring to the markets that

marketers refer to as Generation X. The Generation X consumer is profiled to be

between the ages of 18 to 29. They have high expectations in life and are very mobile

and active. They adopt a lifestyle of living for today and not worrying about long-term

goals. Those Pepsi’s main emphasis on this segment they also have a focus on the 12 to

18 year old market. Pepsi believes if they can get this market to adopt their product

then they could establish a loyal customer for life.

Pepsi Cola throughout its 100 years of existence has developed much strength.

One of the strengths that have developed Pepsi into such a large corporation is a strong

franchise system. The strong franchise system was the backbone of success along with

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a great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring

Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year

of 1997.

Pepsi also has the luxury to spend 225 million dollars in advertising a year. This

enormous ad budget allows Pepsi to reinforce their products with reminder advertising

and promotions. This large budget also allows Pepsi to introduce new products and

very quickly make the consumer become aware of their new products.

Pepsi also has had the good fortune of making very wise investments. Some of the best

investments have been in their acquiring several large fast food restaurants. They have

also made wise investments in snack food companies like Frito Lay, which at present

time is the largest snack company in the world. Probably high on the list of strengths is

Pepsi’s beverage line up.

Pepsi has four soft drinks in the top ten beverages in the world. These brands

are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other

strong brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license

agreement with Ocean Spray Juices.

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Organizational Structure

Chairman

President

Unit Manager

TDM

ADC

Customer Executive Customer Executive

Distributers A,B,C Distributers E,F

Route Agents Route Agents

Helper Helper

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PepsiCo’s beverage business was founded at the turn of the century by Caleb Bradham,
a New Bern, North Carolina druggist, who first formulated Pepsi – Cola. Today
consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other
Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra
Mist and Mug Brands- account for nearly one-third of total soft drink sales in the
United States, a consumer market totaling about #60 billion.

Peps-Cola also offers a variety of non-carbonated beverages, including Aquafina

bottled water, Fruit works and all Sport.

In 1992 Pepsi-Cola formed a partnership with Tomas J. Lipton Co. today Lipton is the
biggest selling ready-to drink tea brand in the United States. Pepsi-Cola also markets
Frappuccino ready-to drink coffee through a partnership with Starbucks.

In 2001 so be became a part of Pepsi-Cola. So be manufactures and markets an

innovative line to beverages including fruit blends, energy drinks, dairy-based drinks,
exotic teas and other beverages with herbal ingredients.

Outside the united states, Pepsi-Cola soft drink operations include the business of
Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and
territories.

Pepsi-Cola began selling its products internationally in 1934 with its operations in
Canada. Operations grew rapidly beginning in the 1950s. In addition to brands
marketed in the United States, major products include Mirinda and Pepsi-Cola North
America includes the United States and Canada. Key international markets include
Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand
and the United Kingdom. Pepsi-Co Beverages International also produces, sells and
distributes Gatorade sports drinks as well as Tropicana and other juices internationally.

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Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-
Cola bottlers and food service customers. This advertising. New advertising and
exciting promotions keep Pepsi-Cola brands young.

The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The
company also provides fountain beverage products.

Pepsi-Co’s snack food operations had their start in 1932 when two separate events took
place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food
product – a corn chip – and started an entirely new industry. The products was Fritos
brand corn chips, and his firm became the Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay started his own business
distributing potato chips. Mr. Lay later bought the company that supplied him with
product and changed its name to H.W. Lay Company. The Frito Company and H.W.
Lay Company merged in 1961 to become Frito-Lay, Inc.

Today, Frito-Lay brands account more than half of the U.S. snack chip industry.

PepsiCo began its international snack food operations in 1966. Today, with operations
in more than 40 countries, it is the leading multinational snack chip company,
accounting for more than one quarter of international retell snack chip sales. Products
are available in some 120 countries. Frito-Lay international markets include Australia
Brazil, Mexico the Netherlands, South Africa the United Kingdom and Spain.

Often Frito-Lay products are known by local names. These names include Matutana in
Spain, Sabritas and Gamesa in Mexico, Flma Chips in Brazil, Walkers in the United
Kingdom and others. The company markets Frito-Lay brands on a global level, and
introduces unique products for local tastes.

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Major Frito-Lay products include Ruffles, Lay’s and Doritos brands snack chips. Other
major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas
tortilla chips, Rold Gold pretzels and Sun Chips multigrain snacks. Frito-Lay also sells
a variety of snack dips and cookies, nuts and crackers.

GATORADE & TROPICANA

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging

business. The company entered the concentrate orange juice business in 1949,
registering Tropicana as a trademark.

In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time,
consumers could enjoy the fresh taste of not-from-concentrate 100% Florida orange
juice in a ready0to serve package the juice, Tropicana Pure Premium, became the
company’s flagship product.

In 1957 the name of the company was changed to Tropicana Products, headquartered
in Bradenton, Florida. The company went public in 1957, was purchases by Beatrice
Foods Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to the
seagram Company Ltd. in 1988. Seagram purchased Dole global juice business in
1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998.

Today the Tropicana brand is available in 63 countries. Principal brands in North

America are Tropicana Pure premium, Tropicana Season’s Best, Dole Juices and
Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium
and Dole juices along with Frui’Vita, Looza and Copella. Tropicana Pure Premium is
the third largest brand of all food products sold in grocery stores in the United States.

Gatorade sports drinks was acquired by the Quaker Oats Company in 1983 and become
a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink.
created in 1965 by researchers at the University of Florida for the school’s football
team, “The Gators,” Gatorade is now the world’s leading sport’s drink.

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QUAKER FOODS

The Quaker Oats company was formed in 1901 when several American pioneers in oat
milling came together to incorporate. in Ravenna; Ohio, Henry D. Seymour and
William Heston had established the Quaker Mill Company and registered the now
famous trademark. Seymour wanted his product to be symbol of honesty, integrity and
strength. the figures of a man in Quaker clothes became the first registered trademark
for breakfast cereal and remains the hallmark for Quaker Oats today.

in Cedar Rapids, lowa, John Stuart and son, Robert, and their partner, George Douglas,
operated the largest cereal mill of the time. Ferdinand Schumacher, known as “The
Oatmeal King,” had founded German Mills American Oatmeal Company in 1856.

Combining the Quaker Mill Company with the Stuart and Schumacher businesses
brought together the top oats milling expertise in the country as the Quaker Oats
Company.

The first major acquisition of the company was Aunt Jemina Mills Company in 1926,
which is today the leading manufacturer of pancake mixes and syrup.

In 1986, the Quaker Oats Company acquired the Golden Grain Company, producers of
Rice-A-Roni.

PepsiCo merged with the Quaker Oats Company in 2001. Its products still have the
eminence of wholesome, good-for-you food, as envisioned by the company over a
century ago.

Slogans and Logos

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1898 Brad's Drink

1903 Exhilarating, Invigorating, Aids Digestion

1906 Original Pure Food Drink

1908 Delicious and Healthful
1915 For All Thirsts - Pepsi:Cola
1919 Pepsi:Cola - It makes you Scintillate
1920 Drink Pepsi:Cola - It Will Satisfy You

1928 Peps You Up!

1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink

1934 Double Size Refreshing and Healthful

1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom
1949 Why Take Less When Pepsi's Best?

1950 More Bounce to the Ounce

1954 The Light Refreshment Refreshing Without
Filling
1958 Be Sociable, Have a Pepsi
1961 Now It's Pepsi for Those Who Think Young

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Table No. 1

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 1963 Come Alive! You're in the Pepsi Generation
Taste that Beats the Others Cold, Pepsi Pours It
1967
On.
You've Got a Lot to Live, Pepsi's Got a Lot to
1969
Give
1973 Join the Pepsi People Feelin' Free
1976 Have a Pepsi Day!
Catch That Pepsi Spirit
1979
Take the Pepsi Challenge
1981 Pepsi's Got Your Taste for Life
1983 Pepsi Now!
1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi

1997 Generation Next

1998 Same Great Taste

1999 The Joy of Cola
2000 The Joy of Pepsi
2003

2004
Pepsi. It's the Cola
2005

2006

What’s in Soft Drinks?

Soft drinks have been part of the American lifestyle for more than 100 years. Many of
today’s soft drinks are the same as the first ones enjoyed in the 1800s.

Soft drink production begins with the creation of a flavored syrup using a closely-
guarded company recipe. The syrup is mixed with purified water and then carbonated

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by adding carbon dioxides gas under pressure. This carbonation creates the “tingly
fizz” that gives soft drinks a refreshing taste.

Now for a closer look at soft drink ingredients….

Like other foods, the ingredients that are used soft drinks are approved and closely
regulated by the U.S. Food and Drug Administration (FDA). All of the ingredients used
in soft drinks are found in a variety of other foods.

Water

Soft drink production starts with a pure source of water. Regular soft drinks contain
90% water, while diet soft drinks contain up to 99% water. Drinking water often
contains trace amounts of various element that affect its taste. You have probably
noticed that tap water tastes different in various regions of the country. Bottlers use
sophisticated filtering and other treatment equipment to remove any residual impurities
and to standardize the water used to make soft drinks. That’s why your favorite soft
drink tastes the same in New York as it does in Texas.

Carbon Dioxide

A colorless and odorless gas, carbon dioxide is the essential characterizing in all
“carbonated” beverages. It is given off when we breathe and is used by plants to
produce oxygen.

When dissolved in water, carbon dioxide imparts a unique taste. For that reason natural
sources of carbonated, or effervescent, mineral waters were once highly prized. These
rare mineral waters. Were also believed to have beneficial medicinal properties. Efforts
to make and sell “artificial effervescent mineral water” were well underway in Europe
and the U.S. By 1800.

It was the innovative step of adding flavors to these popular “soda waters” that gave
birth to the soft drink beverages we enjoy today. In the early days of soft drink

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manufacturing, carbon dioxide was made from sodium salts. This is why carbonated
beverages were called “sodas” or “soda water.”

Today, bottlers buy pure carbon dioxide as a compressed gas in high-pressure

cylinders. Carbon dioxide gas is absorbed into the flavored soft drink in a carbonator
machine just before the container is sealed. While under pressure and chillethe soft
drink may a sorbe up to fuor times the beverage volume of carbon dioxide.

When you open a soft drink bottle or can, he “pop” you hear and the “fizz” you see is
the rapid escape of carbon dioxide gas caused by the sudden release of pressure on the
beverage.

Flavors

One of the most important ingredients in soft drinks is flavoring. Most soft drink
bottlers mix many individual flavors to create distinctive tastes.

Natural flavors in soft drinks come from spices, natural extracts and oils. Fruit-flavored
soft drinks such as orange and lemon-lime often contain natural fruit extracts. Other
flavors such as root beer and ginger ale contain flavorings made from herbs and spices.

There are also some artificial or man-made flavorings used in soft drinks. Nature does
not produce enough of some flavors to satisfy world demand. Also, some natural
flavors are limited geographically and seasonally.

Colors

Many people don’t realize how important color is to taste perception. Color affects our
psychological impression of food. If you don ‘believe it, try eating a familiar food in
the dark. The colors used in foods and beverages come from both natural and synthetic
sources

Caffeine

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Caffeine is a substance that occurs naturally in more than 60 plants including coffee
beans, tealeaves, kola nuts and cacao beans. In some cases, small amounts of caffeine
are added to soft drinks as part of the flavor profile. The amount of caffeine in a soft
drink is only a fraction of that found in an equal amount of coffee or tea.

Caffeine has a classic bitter taste that enhances other flavors. It has been part of almost
every cola-and pepper-type beverage since they were first formulated more than 100
years ago and has been enjoyed in coffee, tea and chocolate beverages for centuries.

Even though some people feel the effects of caffeine are harmful, scientific research
has refuted these claims. The long history of caffeine’s use confirms that it is safe when
consumed in moderation. For people who wish to restrict their caffeine, many caffeine-
free soft drinks are available.

Caffeine

Similar to fruit juices and many other food products, most soft drinks are slightly
acidic. Acidulates add a pleasant tartness to soft drinks and act as preservative. Some
soft drinks contain a small amount of one or two common food acidulates – phosphoric
acid and citric acid occasionally, other acidulates such as malic acid or tartaric acid are
also used.

Preservatives

Soft drinks do not normally spoil because of their acidity and carbonation. However,
storage conditions and storage time can sometimes impact taste and flavor. For this
reason, some soft drinks contain small amounts of preservatives that are commonly
used in many foods.

Potassium

Potassium is another essential nutrient found many natural and man-made food
ingredients. Like sodium, potassium exists naturally in drinking water and, therefore,
soft drinks. Small amounts of potassium are also found in some of the flavoring agents
and other ingredients used in soft drinks.

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Sodium

Because the names “soda pop” “soda water” were associated with early soft drinks,
many people falsely believe that carbonated beverages contain significant amounts of
sodium. This is not true.

Sodium, in the form of various salts, is present in many natural and man-made
compounds. It is an essential mineral nutrient responsible for regulating and
transferring body fluids, as well as other important body functions. Although an
adequate daily intake of sodium is necessary for good healthy, excessive consumption
has been tied to high blood pressure in some people.

Soft drinks are not significant sources of sodium in the diet. In fact, the local drinking
water supply used in making soft drinks contributes most or all of the sodium. Small
amounts of sodium in some soft drinks can also come from other ingredients.

Soft drinks are classified by FDA as “low” or “very low” sodium foods. Even people
who are advised to restrict their intake of sodium by their doctor can usually drink and
enjoy soft drinks with their doctor’s approval. Sodium-free soft drinks are available.

Non-Diet Soft Drinks

Most regular (non-diet) soft drinks are sweetened with sucrose or high fructose corn
syrup, (HFCS0. A mixture of these sweeteners may also be form sugarcane or sugar
beets. HFCS is a newer and more convenient liquid sweetener, similar to sucrose but
made from corn. It is now use in many prepared foods.

With either, the amount of sweetener in a soft drink ranges from 7 to 14%, about the
same amount as a glass of pineapple or orange juice. Both sucrose and HFCS are easily
digested carbohydrates, and carbohydrates are an important part of the diet. They
provide calories, which are the source of energy for the body.

Sometimes thought to be more fattening than other foods sugar actually contains the
same number of calories by weight as protein (4 calories/gram), and less than half the
calories of fat (9 calories/gram). Sugars also contain far fewer calories than alcohol (7
calories/gram).

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Diet Soft Drinks

The popular class of beverages known as diet soft drinks are made possible by the
intensely sweet substances we refer to as “diet” or “low calorie” sweeteners.
Aspartame, saccharin, sucralose and a casual fame K are approved for use in soft
drinks today and sweeteners remains an active area of food research. By choosing from
a variety of different sweeteners, manufacturers can blend sweeteners to match
beverage formulations and better appeal to all consumer tastes and preferences.

 Aspartame

After many years of scientific testing, aspartame was first approved for use in
some foods in 1981, and for soft drinks in 1983. it has been reviewed and
approved, not only by the U.S. Food and Drug Administration (FDA), but also
by the governments of more than 60 countries and the World Health
Organization.

Aspartame is a “nutritive” sweetener, meaning it is easily digested and provides

calories. However, its sweetening power is so great that the tiny amount needed
to sweeten a soft drink adds less than one caloric per 12-ounce can.

Soft drink companies use slightly different amounts of aspartame in various

flavor recipes. Most diet soft drinks are sweetened with aspartame alone, but
some may contain a blend of aspartame and saccharin. If aspartame is the only
sweetener used, about 15 milligrams per ounce of beverage is added. As other
diet sweeteners become available, more sweetener blends are likely to be used.

 Saccharin

Saccharin has many desirable properties that make it a valuable food

ingredient. It is extremely sweet – about 300 times sweeter than sugar – and
contributes no calories. It is stable in foods and is metabolically inert, which
means that it goes through the body without changing. Finally, it is relatively
en-expensive.

Because of some concerns raised in the late 1970s, labels formally were
required on all products containing saccharin. It is now generally accepted by

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 academic scientists, the federal government’s National Toxicology Program and
various international health organizations that there is no risk in consuming
saccharin. The many years of saccharin use demonstrate not only its popularity
with soft drink manufacturers, but also with consumers.

 Acesulfamek

Acesulfame K, under the brand name of “Sunnett,” is an example of a new diet

sweetener approved for soft drinks by the FDA in 1998. Acesulfame K is a
calorie free, heat stable sweetener that is 200 times sweeter than sugar.

 Sucralose

Sucralose was approved by the FDA in 1998 for use in a wide variety of food
products including soft drinks. Sucralose is a low calorie, high-intensity
sweetener that is about 600 times sweeter than sugar. It is sold under the brand
name of “Splenda” Sucralose and sucrose (sugar) have been shown to have
similar taste and flavor profiles.

A number of other fascinating low-calorie sweeteners are currently undergoing safety

evaluations for future use. These include all-time, a compound similar to aspartame
that is remarkably 2,000 times sweeter than sucrose and various naturally occurring
plant derivatives, such as stevia and thaumatin.

Invention of “Brad’s Drink”

1898:

Caleb Bradham, a New Bern, North Carolina, pharmacist, renames “Brad’s Drink,” a
carbonated soft drink he created to serve his drugstore’s fountain customers. Caleb
Brahdam know that to keep people returning to his pharmacy, he would have to turn it
into a gathering place. He did so by concocting his own special beverage, a soft drink.
His creation, a unique mixture of kola nut extract, vanilla and rare oils, became so
popular his customers named it “Brad’s Drink.” Caleb decided to rename it “Pepsi-
Cola,” and advertised his new soft drink. People responded, and sales of Pepsi-Cola
started to grow, convincing him that he should form a company to market the new
beverage. It is first used on August 28.

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Journey of “Brand’s drink” to Pepsi-Cola

In 1898 Caleb Bradham named his drink “Brand’s drink” after it become so popular he
again rename it as Pepsi-col.

1902:

Applies to the U.S. Patent office for a trademark for the Pepsi-Cola name.

He launched the Pepsi-cola Company in the back room of his pharmacy, and applied to
the U.S Patent office for a trademark. At first, he mixed the syrup himself and sold it
exclusively through soda fountains. But soon Caleb recognized that a greater
opportunity existed to bottle Pepsi so that people could drink it anywhere.

1903:

In keeping with its origin as a pharmacist’s concoction advertising.” The business

began to grow, and on June 16, 1903, “Pepsi-Cola” was officially registered with the
U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line
“Exhilarating, invigorating, Aids Digestion.”

1905:

A new logo appears, the first change from the original created in 1898.

1906:

The logo is redesigned and a new slogan added: “The original pure food drink.” The
trademark is registered in Canada in 1905 to 1907; Pepsi-Cola franchises reach from 2
to 40 He also began awarding franchises to bottle Pepsi to independent investors,
whose number grew from just two in 1905, in the following year, and 40 by 1907. By
the end of 1910, there were Pepsi-Cola franchises in 24 states.

PEPSI-COLA BOTTLING PLANTS IN 1906:

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Wilson,NC Charlotte,NC Fayetteville,NC Wilmington,NC Washington
,NC

Tarboro,NC Kinston,NC Greensboro, NC Raleigh, NC New Bern,

NC

Darlington, Norfolk, NC Suffolk, AV Huntington, WV Renserverte

NC , WV

Table No. 2

1907:

The Pepsi trademark is registered in Mexico. Forty bottling plants were producing
Pepsi-Cola, and 100,000 gallons of syrup were sold that year.

1908:

New offices and plant facilities were added to the New Bern plant, and the number of
bottlers increased dramatically to ninety-three. The beginning of the second decade of
the new century found Caleb Brandham producing syrup for 280 bottlers, and it
seemed as though nothing could stop the growing popularity of this new soft drink.

1909:

Automobile racing pioneer Barney Old field becomes Pepsi’s first celebrity endorser
when he appears in newspaper ads describing Pepsi-Cola as “A Bully drink…
refreshing, invigorating, a fine bracer before a race.” The theme “Delicious and
Healthful” appears, and will be used intermittently over the next two decades. Pepsi
had been one of the first companies in the United States to switch from horse-drawn
transport to motor vehicles, and Caleb’s business expertise captured widespread
attention. He was even mentioned as a possible candidate for Governor. A 1913
editorial in Greensboro Patriot praised him for his “keen and energetic business sense.”

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Pepsi- Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales
with the slogan, “Drink Pepsi-Cola. It will satisfy you.” Then came world War I, and
the cost of doing business increased drastically. Sugar prices see sawed between record
highs and disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was
forced into a series of business gambles just to survive, until finally, after three
exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants
remained open. It wasn’t until a successful candy manufacturer, Charles G. Guth,
appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of
Loft incorporated, a large chain of candy stores and soda fountains along the eastern
seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory
business relationship with the Coca-Cola Company, and at the same time to add an
attractive drawing card to Loft’s soda fountains. He was right. After five owners and 15
unprofitable years, Pepsi-Cola was once again a thriving national brand.

1920:

Pepsi appeals to consumers with, “Drink Pepsi-Cola. It will satisfy you.”

1932:

The trademark is registered in Argentina.

1934:

Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its
competitors for six ounces.

1938:

The trademark is registered in the Soviet Union.

1939:

A newspaper cartoon strip, “Pepsi & Pete,” introduces the theme “twice as Much for a
Nickel” to increase consumer awareness of Pepsi’s value advantage.

1940:

23
Pepsi makes advertising history with the first advertising jingle ever broadcast
nationwide. “Nickel, Nickel” will eventually become a hit record and will be translated
into 55 languages. A new, more modern logo is adopted.

1941:

In support of America’s war effort, Pepsi changes the color of its bottle crowns to red,
white and blue. A Pepsi canteen in Times Square, New York, operates throughout the
war, enabling more than a million families to record messages for armed services
personnel overseas.

1943:

The “Twice as Much “ advertising strategy expands to include the theme, “Bigger
Drink, Better Taste.”

1949:

The “Twice as Much” advertising strategy expands to include the theme, “Bigger
Drink, Better Taste.

1950:

“More Bounce to the Ounce” becomes Pepsi’s new theme as changing soft drink
economics force Pepsi to raise prices to competitive levels. The logo is again updated.

1953:

Americans become more weight conscious, and a new strategy based on Pepsi’s lower
caloric content ios implemented with “the Light Refreshment” campaign.

1954:

“The Light Refreshment” evolves to incorporate “Refreshing Without Filling.”

1958:

24
Pepsi struggles to enhance its brand image. Sometimes referred to as “the kitchen
cola,” as a consequence of its long-time positioning as a bargain brand, Pepsi now
identifies itself with young, fashionable consumers with the “Be Sociable, Have a
Pepsi” theme. A distinctive ”swirl” bottle replaces Pepsi’s earlier straight sided bottle.

1959:

Soviet Premier Nikita Khrushchev and U.S. Vice –President Richard Nixon meet in the
soon-to-be-famous F” kitchen debate” at an international trade fair. The meeting, over
Pepsi, is photo-captioned in the U.S. as “Khrushchev Gets Sociable.”

1961:

Pepsi further refines its target audience, recognizing the increasing importance of the
younger, post-war generation.” Now it’s Pepsi, for Thus who think young” defines
youth as a state of mind as much as a chronological age, maintaining the brand’s
appeal to all market segments.

1963:

In one of the most significant demographic events in commercial history, the post-war
baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the
change, and positions Pepsi as the brand belonging to the new generation-The Pepsi
Generation. “Come alive! You’re in the Pepsi Generation” makes advertising history. It
is the first time a product is identified, not so much by its attributes, as by its
consumers’ lifestyles and attitudes.

1964:

A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1966:

25
Diet Pepsi’s first independent campaign, “Girl watchers, “focuses on the cosmetic
benefits of the low-calorie cola. The “Girl watchers” musical theme becomes a Top 40
hit. Advertising for another new product, Mountain Dew, a regional brand acquired in
1964, airs for the first time, built around the instantly recognizable tag line, “Ya Hoo,
Mountain Dew!”

1967:

When research indicates that consumers place a premium on Pepsi’s superior taste
when chilled, “Taste that beats the others cold. Pepsi pours it on” emphasizes Pepsi’s
product superiority. The campaign, while product-oriented, adheres closely to the
energetic, Youthful, imagery established in the initial Pepsi Generation campaign.

1969:

”You’ve got a lot to live. Pepsi’s got a lot to give” marks a shift in Pepsi Generation
advertising strategy. Youth and lifestyle are still the campaign’s driving forces, but with
“Live/Give,” a new awareness and a reflection of contemporary events and mood
become integral parts of the advertising’s texture.

1973:

Pepsi Generation advertising continues to evolve. “Join the Pepsi People, Feelin’ Free”
the mood of a nation involved in massive social and political change. It pictures us the
way we are one people, but many personalities.

1975:

The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers

that Pepsi’s taste is superior.

1976:

26
“Have a Pepsi Day” Generation’s upbeat reflection of an improving national mood.
“Puppies,” a 30- second snapshot of an encounter between a very small boy and some
even smaller dogs, becomes an instant commercial classic.

1979:

With the end of the ‘70s comes the end of a national malaise. Patriotism has been
restored by an exuberant celebration of the U.S. bicentennial, and Americans are
looking to the future with renewed optimism. “Catch that Pepsi Spirit!” catches the
mood and the Pepsi Generation carries it forward into the ‘80s.

1982:

With all the evidence showing that Pepsi’s taste is superior, the 0nly question
remaining is how to add that message to Pepsi Generation advertising. The answer?
“Pepsi’s got your Taste for Life!,” a triumphant celebration of great times and great
taste.

1983:

The soft drink market grows more competitive, but for Pepsi drinkers, the battle is
won. The time is right and so is their soft drink. It’s got to be “Pepsi Now!”

1984:

A new generation has emerged-in the United States, around the world and Pepsi
advertising, too. “Pepsi. The choice of a New Generation” announces the change, and
the most popular entertainer of the time, Michael Jackson, stars in the first two
commercials of the new campaign. The two spots quickly become “the most eagerly
awaited advertising of all time.’

1985:

Lionel Richie leads a star-studded parade into “New Generation “ advertising followed
pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan
Marino are part of it, as are film and television stars Teri Garr and Billy Crystal.
Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in

27
a Diet Pepsi spots. And the irrepressible Michael J. Fox brings a special talent, style
and spirit to a series of Pepsi and Diet Pepsi commercials, including a classic,
“Apartment 10G.”

1987:

After an absence of 27 years, Pepsi returns to Times Square, New York, with a
spectacular 850-square foot electronic display billboard declaring Pepsi to be
“America’s Choice.”

1988:

Michael Jackson returns to “New Generation” advertising to star in a four-part

“episodic” commercial named “Chase.” “Chase” airs during the Grammy Awards
program and is immediately hailed by the media as “the most-watched commercial in
advertising history.”

1989:

“The Choice of New Generation” theme expands to categorize Pepsi users as “A

Generation Ahead!”

1990:

Teem stars Fred Savage and Kirk Cameron join the “New Generation” campaign, and
football legend joe Montana returns in a spot challenging other celebrities to taste test
their colas against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi
campaign, “You got the right one baby.”

1991:

“You got the Right one Baby” is modified to “You got the Right one Baby, Uh-Huh!”
Girls” join Ray Charles as back-up singers and a campaign soon to become the most
popular advertising in America is on its way. Supermodel Cindy Crawford stars in an

28
award-winning commercial made to introduce Pepsi’s updated logo and package
graphics.

1992:

Celebrities join consumers, declaring that they “Gotta Have It.” The interim campaign
supplants “Choice of a New Generation” as work proceeds on new Pepsi advertising
for the ‘90s. Mountain Dew growth continues, supported by the is that, except for the
unique great taste of Dew, they’ve “Been there, Done that, Tried that.”

1993:

“Be Young, Have fun, drink Pepsi” advertising starring basketball superstar Shaquille
O’Neal is rated as best in U.S.

1994:

New advertising introducing Diet Pepsi’s freshness dating initiative features Pepsi
CEO Craig Weather up explaining the relationship between freshness and superior
taste to consumers.

1995:

In a new campaign, the company declares “Nothing else is a Pepsi” and takes top
honors in the year’s national advertising championship. Pepsi-Cola is top ad scorer in
Super Bowl. Mountain Dew sponsors the Grammy Awards. Theme line is “Been There,
Done That, Tried That.” Mountain Dew sponsors the Grammy Awards. Theme line is
“Been There, Done That, Tried That.” The Pepsi Lipton Tea Partnership debuts new ad
campaign emphasizing “There’s only one Original.” Pepsi-Cola introduces Smooth
Moos Smoothies, a line of low-fat dairy shakes. 7Up International launches 7Up Ice
cola, a new clear cola. Frito-Lay aggressively expands its low/no-fat snack segment.
Baked Lays is introduced. Frito-Lay Taste Baked Tostitos, Rold Gold Fat Free Pretzels,
Ruffles Reduced Fat Potato Chips and Tostitos fat-free salsas and back bean dip
brands. Campaign line s “Taste the fun, not the fat.” PepsiCo will introduce Lay’s
brand potato chips in 20 markets throughout the world Roger Enrico succeeds Wayne
Calloway as chief executive officer.

29
1996:

Pepsi-Cola launches Pepsi World at http:\www.pepsi.com\ “Pepsi Stuff” unveiled.

Consumers save points for merchandise.

PepsiCo stocks splits two-for-one.

Pepsi-Cola domestic and international operations combined into Pepsi-Cola Company.

International and domestic snack food operations combined into one business unit
celled Frito-Lay

Mountain Dew launches a massive beeper network called “The Mountain Dew
Extreme Network.”

PepsiCo, Inc. and Lucas film Ltd. announce the largest promotional alliance in
entertainment history, linking existing and future Star Wars series with PepsiCo
beverage, snack foods and restaurant brands worldwide.

Pepsi-Cola and MTV establish a partnership to develop international programming,

cross promotions, marketing tie-ins and special events.

Filming of the world’s first commercial in space. Cosmonauts shoot a large blue Pepsi
can in orbit outside the MIR space station.

International retail sales of Doritos brand tortilla chips exceed $250 million, global
expansion nears 20 countries.

PepsiCo announces plans to spin off its restaurant businesses as an independent

publicly-traded company, sell its food distribution company and focus on its core
beverage and snack food businesses. The spin-off is completed October 6, 1997.
Shareholders receive one share in the new restaurant company, Tricon Global
Restaurants, Inc., for every 10 shares they hold in PepsiCo, Inc.

PepsiCo is new a $20 billion company with approximately 140,000 employees

worldwide.

1997:

30
Pepsi-Cola introduces new advertising campaign with the theme “Generation Next.”

Pepsi-Cola North American bottling operations become a separate unit called. The
Pepsi-Cola Botting Co.

National roll-out of Aquafina bottled water.

Frito-Lay announces plans to buy the 104-year-old snack, Cracker Jack, a candy-
coated mix of popcorn and peanuts from Borden Foods Corp.

Pepsi-Cola celebrates 100th Anniversary with first worldwide bottlers conference, held
in Hawaii. The event is held during the same time as first bottle’s conference.

Frito-Lay introduces Doritos 3Ds Tortilla Chips, a triangle-shaped.

1998:

Pepsi-Cola introduces two-liter plastic bottle with built-in “grip handle” that makes it
easier to grip and pour.”

Pepsi-Co Chairman and CEO Roger A Enrico donates his salary to provide
scholarships for children of PepsiCo employees.

Pepsi introduces new look called the “Globe” which prominently features a 3-
dimensional cola Globe against a blue ice backdrop.

Pepsi-Cola announces breakthrough product: Pepsi One, great-tasting, one-calorie cola

is first in United States with newly FDA approved sweetener Sunett.

Former Chairman and CEO Wayne Calloway dies on July 9th. He joined PepsiCo in
1967 becoming its Chairman and CEO in 1986.

PepsiCo acquires Tropicana Products from Seagram Company Ltd., The biggest
acquisition ever undertaken by PepsiCo. Tropicana was founded in 1947 by Anthony
Rossi. Its major brand is Tropicana Pure Premium Juices.

The Frito-Lay Company purchases Smith’s Snack food Company in Austrialia from
United Biscuits Holdings, Inc. (Purchase completed on Aug. 26).

31
In November the PepsiCo Board of Directors authorizes the company to convert a
significant portion of its $7 billion company-owned bottling operations, The Pepsi
Bottling Group (PBG) into public ownership.

PepsiCo signs groundbreaking 10-year agreement with the YMCA of the USA through
which both Pepsi-Coal and Frito-Lay will develop national and local marketing
program to support the organization’s many charitable efforts.

Frito-Lay becomes the snack chip leader in South and Central America as it enters a
joint venture with Empreseas Polar SA of Venezuela.

Frito-Lay acquires Barcel, Chile second-largest snack company.

PepsiCo products contribute more than any other packaged goods company to the sales
growth in U.S. supermarkets. Mass merchandisers and chain drug stores.

In March, The Pepsi Bottling Group, the world’s largest Pepsi bottler, begins trading
on the New York Stock Exchange. It is listed under the symbol PBG. The $2.3 billion
public offering is among the biggest initial public offerings in stock market history.

Tropicana Products, Inc. acquires Alimentos del Valle S.A., one of Spain’s leading
chilled juice and soup companies.

1999:

Tropicana introduces two new calcium-fortified Pure Premium juices: Pure Premium
Grove stand Calcium and Pure Premium Ruby Red Grapefruit Calcium.

Pepsi launches “The joy of Cola” advertising campaign.

Steve Reinemund named president of PepsiCo.

Hallie Eisenberg “Joy of Cola” commercials named #6 of “Fifty6 Greatest TV

commercials of all time,” by TV Guide.

Lipton introduces Iced Tea Green Tea with Honey and Diet Peach.

32
PepsiCo and Suntory Limited signed and agreement to create a joint venture linking
bottling networks in North Carolina and New York. The new company, Pepsi Bottling
Ventures, will be the third largest bottler in the Pepsi system.

Tropicana juices are entering the huge India market for the first time. Spearheaded by
Tropicana Asia Pacific, orange jice will appear in the New Delhi and Bangalore
markets.

Frito-Lay introduces a new corporate log.

Frito-Lay signs agreement with Ober to Sausage to be the exclusive distributor of the
natural-style jerky.

2000:

Pepsi-Cola revives its ”Pepsi Challenge” advertising campaign. Challenge includes

Pepsi One and Diet Coke as well as regular cola.

Pepsi-Cola teams up with Yahoo lnc., the biggest web navigation company, In a
multimedia marketing campaign aimed at teens and young adults.

Tropicana, in a joint venture with Galaxy Foods CO., will introduce an icy smoothie
soy ilk–and-fruit drink, made with juice, fruit puree along with soymilk and soy
protein.

Aquafina brand bottled water becomes the best-selling brand of single-serve bottled
water in US retail channels.

Pepsi Stuff. Com, a web site for merchandise, discounts and digital music files from
biggest names in movies, music, video games, apparel and sports is launched in joint
promotion with Yahoo.

Pepsi-Cola launches “Sierra Mist” a caffeine-free, lemon/lime flavored bottled

Frappuccino Coffee Drink the sixth flavor addition to its popular line of ready-to-drink
coffee.

33
PepsiCo, lnc. Reaches agreement to acquire a majority stake on SoBo brand has made
it one of industry’s most successful companies.

PepsiCo lnc. And the Quaker Oats Company reached an agreement to merge.

PepsiCo completes the acquisition of a majority state in South Beach Beverage co.

PepsiCo sales are $20 billion and the company has 125,000 employees at year end.

PepsiCo launches Diversity@work,

http://www. PepsiCo. Com/diversity website

Pepsi-Cola Company launches Dole single-serve juices in vending machines, coolers

and other retail outlets throughout the United States.

Pepsi-Cola’s flagship brand will have new tagline, “The Joy of Pepsi.”

Tropicana celebrates a company milestone- 300 billion fresh oranges squeezed since
the company began making country’s first over mass distributed, not-fruit juices and
non-fat taught into a smooth, filling drink that delivers nutrition taste and convenience.

Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide. It is Mountain
Dew’s first line extension since the introduction of Diet Mountain Dew in 1988.

May 2-The Board of Directors of PepsiCo, lnc. Elected Steven S Reinemund chairman
of the board and chief executive officer, succeeding Roger Enrico who will become
vice chairman. The board also elected Indra K. Nooyi as a director and gave her the
additional title of president of PepsiCo in addition to CFO.

Frito-Lay introduces Lay’s Bistro Bistro Gourmet potato chips.

Pepsi-Cola Company introduces a “Pepsi Twist.” Regular and diet versions of the crisp
new cola with lemon are entering retail outlets in selected U.S. markets.

SLAM, the orange brand Mirinda, is launched in Italy.

PepsiCo acquires Tasali Foods, Saudi Arabia’s leading snack company.

34
On August 2, PepsiCo merges with The Quake Oats Company, creating a $25 billion
food and beverage company focused on the rapidly growing consumer demand for
convenience.

PepsiCo introduces a new corporate logo.

Tropicana Pure Premium: Low Acid orange juice makes official debut at Tropicana
400.

Diet Sierra Mist is introduced. Frito-Lay introduces Go Snacks, canisters that truly go
anywhere. Gatorade Pure Premium announces sponsorship of Disney’s award- winning
show The Lion King.

Tropicana R introduces 14-oz. Single-serve resalable bottle you take with you for the
on-the –go-consumers.

Diet Pepsi has a new look. “Mr. Green,” a green-tinted carbonated soft drink with
caffeine and ginseng, is launched under So Be ’s New Age beverage line in April.

The North American Coffee Partnership (NACP), a joints venture between Starbucks
Coffee Company and PepsiCo, lnc. Introduces Starbucks Double Shot.

Quaker Oatmeal this year celebrates the 125th anniversary of the nation’s number-one-
choice for a nutritious, hot breakfast cereal.

Gatorade turns 35. It was created in 1960s to help performance of Florida Gators
football team and now in the leading sport drink.

New line of Gatorade brand drinks, Xtremo, comes in three new flavors- Mango
Tropical and Citric.

PepsiCo and Kenneth cooper, M.D., M.P.H., of Cooper Concepts lnc. (CCl), a decision
of the renowned Cooper Aerobics Center in Dallas, TX enter into an agreement to
promo to nutrition, fitness and wellness.

Dole Beverages enters chilled orange juice business as it launches five new flavors and
packages.

35
Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target
active, health-conscious adults in four lightly sweetened varieties including B-Power,
Calcium+, Daily C and Multi-V in 20-oz. Bottles.

PepsiCo reorganizes to unite all North American beverage operations, including Pepsi-
Cola, Tropicana and Gatorade, into one new division—PepsiCo Beverages and Foods
North America.

PepsiCo announces $5 billion share repurchase program Starbucks unveils white

vanilla coconut crème Frappuccino.

Tropicana has new ad campaign for Tropicana Pure Premium Healthy Kids –TV spots
designed to capture the essence of children’s

Galaxy Nutritional Foods launches Ultra Smoothies made with Tropicana

PepsiCo publishes Health and Wellness Philosophy. (onpepsico.com)

Frito-Lay announces it is eliminating trans fats from Doritos, Tostitos, and Cheetos.

Quaker’s Nutrition for Women team has developed a Food Guide Pyramid for Women
as well as an online nutritional assessment.

Brand Pepsi has a new look.

Knowles has joined the Pepsi family and will collaborate with Pepsi two new TV
commercials , radio, and Internet

PepsiCo introduces Marathon Kids, a program that encourages kids their families to be
more physically active. The program debuts in Dallas, TX.

Tropicana introduces a new campaign with the tag line “So pure. So alive Tropicana
Pure Premium.”

Tropicana pure Premium and Quaker Oatmeal lunch the Heart and Soul Mates
Support Network featuring nutrition tips. Motivational messages and coaching advice
to help consumers turn healthy habits into life-long changes.

36
Pepsi-Cola launches Sierra Mist nationally. PepsiCo launches “Get Active/Stay
Active” program. Quaker Chewy introduces Quaker Chewy Trail Mix. Gatorade
unveils In-Car Hydration System for NASCAR Drivers. SoBe sponsors U.S. Open
Snowboarding Championships.

Pepsi announces plans to lunch Mt. Dew Livewire, an orange drink, this summer.

Pepsi-Cola sings an exclusive four-year sponsorship with the UK Frito-Lay announces

new line of snacks made with organic.”

“Pepsi stuff” Campaign kicks-off in Canada.

Frito-Lay finds winner of “Would You Name Your Baby Horton” search celebrating the
“re-birth” of its Ruffles brand. The child will receive $50,000 college tuition fund from
Frito-Lay.

PepsiCo creates PepsiCo International, the business that will unite all international
snack, beverage and food units in an effort to drive faster growth and improved
profitability around the world.

PepsiCo releases a Spanish-language “Power of One” television commercial starring

Puerto Rican singer and actor, Ponce, and Velasquez, Mexican-American singer and
actress.

Quaker rolls out new Oatmeal Breakfast Squares. Pepsi Vanilla is launched in the
United States.Tropicana introduces Tropicana 100% Juice Blends.

Pepsi unveils a new tagline: “Pepsi. It’s the Cola. “It is the brand’s first major
campaign shift since 1999 and highlights how Pepsi goes with everything from food to
fun.

Frito-Lay launches Doritos Edge and Tostitos Edge –line extensions with 60% fewer
carbohydrates.

Gatorade introduces Gatorade Endurance Hydration Formula— a specialized sports

drink to meet the needs of endurance athletes.

37
Frito-Lay introduces Quaker Chewy Cookies & Milk granola bars and Quaker Fruit &
Oatmeal cereal bars.

Frito-Lay Canada eliminates trans fats from chips and launches a line of All Natural
Pepsi Edge, the first full-flavored cola with 50% less sugar, carbohydrates and calories
than regular cola.

PepsiCo publishes first Corporate Citizenship report in its 2003 Annual Report.

AWARDS WON BY PEPSICO

IN YEAR 1999

PepsiCo is named to Metropolis Leadership Circle, recognized for efforts to help

reduce traffic congestion and air pollution in Westchester, NY.

Tropicana Products receives top honors in the Business and Industry category in the
Keep Florida Beautiful Awards.

38
Fortune magazine names PepsiCo to its list of ”America’s Most Generous Companies’

Worth Magazine names PepsiCo its list of Best companies for Asians, Blacks, and
Hispanics.

Hallie Eisenberg “joy of Cola” commercials named #6 of Fifty Greatest TV

Commercials” of al time by TV guide.

“Joy of Cola” ads #2 of “Best-Liked Commercials” in USA Today poll for first six
months of 1996.

Tropicana Pure Premium Multivitamin juice is voted “Best Product of the Year” in the
Total Soft Drink and Juice category, in France.

IN YEAR 2001

PepsiCo is in first place in Beverages Category in Fortune magazine’s “Most Admired”

list.

Food Marketing Institute (FM) presents PepsiCo Vice Chairman Roger Enrico with the
2001 William H. Albers Award honoring him for industry statesmanship, a strong
commitment to improving the entire grocery system and exemplary community
service.

PepsiCo is on Fortune magazine’s Best Companies for Minorities” list.

PepsiCo selected as on e of the top 50 corporations in Supplier Diversity by DIV2000.

Hispanic Business names Marie Cummiskey, PepsiCo VP of Technology, as one of the

“Top 50 Hispanic Women in Business.”

Catalyst survey of Women Corporate officers and top Earners list PepsiCo among to
100 companies with women officers.

Latina Style magazine names PepsiCo as one of its “50 Companies for latinas to Work
for in the US.”

39
Global Finance names PepsiCo one of the ff” World’s Best Companies,” in the North
American Beverage Category.

The American Advertising Federation Center on Multiculturalism presents PepsiCo

with as Corporate Mosaic Award for its “strategic embrace of multicultural marketing
and ethnic media and for implementing goal-oriented diversity initiatives.”

Amagzine names PepsiCo President and Chief Financial Officer Indra Nooyi to its list
of the “25 most noteworthy Asians in America of 2001.”

PepsiCo receives Corporate Diversity Award from the Foundation for Ethnic
Understanding.

Frito-Lay plant in killingly, CT receives a Connecticut Department of Environmental

Protection Green Circle award for installing two high efficient air compressors and a
closed loop cooling system. This initiative, along with several others, results in a 79%
reduction in the amount of non-contact cooling water flows, which translates to over
100,000 gallons per day reduction.

Div2000 names PepsiCo #49 on the list of “America’s Top Corporations for
Multicultural Business Opportunities”

The Pepsi Bottling Group wins The Beverage Forum’s” Company of the Year Award”

Working Woman magazine lists PepsiCo for honorable mention in its survey of “Top
Companies for Hispanics to Work for.”

Ebony magazine features Denise Griffith, region vice president sales for Frito-Lays
North America as one of the “ top African American Women at the top in Corporate
America.”

Minority MBA magazine features Brian Jones, Director Information Technology,

PepsiCo and Sandi Karrmann, Vice Pepsident Human Resources, Frito-Lay as among
the “Next Generation of Minority Business Leaders.”

Food Marketing Institute (FMI) presents PepsiCo Vice Chairman Roger Enrico with
the 2001 “William H. Albers Award” honoring him for industry statesmanship, a strong

40
commitment to improving the entire grocery system and exemplary community
service.

Dolores Avezzano, Senior Purchasing project Specialist in Pepsi-Cola Concentrate

Operations, is named d”2001 Woman of the Year” by Women in Flavor & Fragrance
Commerce, Inc.

PepsiCo moves up to number 13 in Fortune “America’s 50 Best Companies for

Minorities” list.

USA Today lists PepsiCo as #8 of the “Fortune 100’ c companies showing productivity
growth.

Fortune magazine names PepsiCo to its “50 Most Popular Employers for MBA’s” list.
The list ranks the most desirable employers in the world, based on where MBA
candidates say they’d like to work. PepsiCo was ranked 47.

PepsiCo is named “Best Workplace for Commuters” by the U.S. Environmental

Protection Agency. The award spotlights employers that have made a commitment to
providing commuter benefits packages that help reduce traffic and air pollution and
improve the quality of life for commuters. The award went to the company’s
Westchester loc ations.

United Way of Westchester*Putnam presents PepsiCo with the “Corporate Gold

Award, “ the “Employee Gold Award “ and the “High Touch Award” for focusing on
the human side of the 2003-2004 United Way campaign.

PepsiCo is named in Diversity Business. Com for “Nation’s Top 50 Corporations for
Multicultural Business” (4th year in a row for PepsiCo)

PepsiCo’s Steve Reinemund was selected by the National Minority Supplier

Development Council (NMSDC) to receive the “Leadership Award”

President Vladimir Put in awards a medal to retired PepsiCo chief Donald Kendall,
who made Pepsi-Cola the first American consumer product to be manufactured in the
Soviet Union.

41
The black Collegian magazine name PepsiCo among “the Top Diversity Employers
2004.”

Gatorade’s Is in you?” campaign wins a silver Effie Award in the Sustained Success
category, which recognizes campaigns proved effective at driving brand growth for at
least five years.

Purpose’s “Drip” campaign wins a gold Effie Award in the No Carbonated Beverages
category.

Pepsi Twist’s “A Twist on a Great Thing and Sierra Mist’s “Shockingly Refreshing”
campaigns both win bronze Effie Awards in the carbonated Beverages category.

“Twisted Cheetos” campaign wins a silver Effie Award in the Packaged Food category.

US Black Engineer Information Technology magazine spotlights two Pepsi-Cola

employees as “Minority Women” who are making a difference in filling the nation’s
expanding need for technical workers and scientists. The women are Gwendolyn
Darling, R& D Documentation Manager, and Opukua Y. Kwapong, R & D Director,
Innovation/Non-Carbonated Beverages.

Fortune Magazine names Indra Nooyi, PepsiCo President and CFO, as #10 among the
“50 Most Powerful Women in American Business” (Oct) Up from #42 in 2000.

Rebecca Madeira, Senior Vice President of Punblic Affairs for Pepsi Cola North
America is named to the “Academy of Women Achievers” Class of 2001 of the YWCA
of the City of New York. She is the 14 th PepsiCo woman to receive the award over a 28
year period.

Dollar & Sense magazine names the following “Key Minority Officers and Managers
in Corporate America” Arthur Anderado Senior Vice President of Advanced
Technology of PepsiCo, Alberado Bru, President and CEO of FLNA; Ron Harrison,
Senior Vice President, Global Diversity and Community Affairs, PepsiCo, Indra Nooyi,
Senior Vic e President and a CFO of PepsiCo and Rogelio Rebelled, President And
CEO of FLl.

42
Minority MBA names PepsiCo to the 2001 “Top Companies for Minority Man’s” as
chosen by the panel of Diversity, Minority Recruiting and Minority Business Experts.

IN YEAR 2002

PepsiCo Chairman Steven S Reinemund named one of Business Week “ Top Managers
of the Year.”

The American Advertising Federation honors Indra Nooyi, PepsiCo President and
Chief Financial Officer, with its District Two Diversity Achievement Award.

Diversifying. Com, an online publication, announces “The Diversity Cola Wars: Pepsi
Beats Coke.’

Frito-Lay receives “the Corporation of the Year Award” from the Women Business
Council- Southwest.

Westchester County Chamber of Commerce inaugurates PepsiCo int0 the Westchester

County Business Hall of Fame. PepsiCo receives the Corporate Citizenship Award.

PepsiCo named “Company of the Year” by Beverage Industry magazine.

PepsiCo named one of one of ”America’s Top Organizations for Multicultural Business
Opportunities” by Div2000. com in its second annual internet election.

Promo Magazine lists 16 “Ageless Wondered” campaigns that “helped redefine

promotion marketing.” Included for 2002 is Pepsi Stuff (started 1996). Past classic
campaigns include Cracker Jack Prizes (19+12)” A prize in every box.” And Pepsi
Challenge (1975) blind taste-testing.

PepsiCo named #1 in Beverages in Fortune magazine’s “Most Admired” survey.

PepsiCo named to “The Business Week Fifty” of top performing companies. The list
names companies that can “prosper in both good times and bad.”

43
Diversifying. Com, an online publication devoted to diversity, names PepsiCo to its of
the “Top 50 Companies in Diversity.” PepsiCo is #19 overall and #10 in Supplier
Diversity.

PepsiCo receives Honorable Mention by IR Magazine in its evaluation of investor

relations programs PepsiCo is cited for “Best M & A Investor Relations” for its
communications regarding the acquisition of Quaker Oats.

Aquafina ad “Nothing” wins “Best Non-alcoholic Beverage Ad, 2002” in Ad Age

“Best Awards”

SER, Jobs for Progress, lnc, a non-profit organization that addresses employmet-
relsated issues impacting Hispanic and other underrepresented groups, names PepsiCo
the “Corporation of the Year”

PepsiCo is recognized by Latina Style Magazine as one of the “Top 50 Best

Companies for Hispanic Woman to work for in the U.S.”

The Hispanic Association on Corporate Responsibility (HACR) highlights PepsiCo in

a study reviewing ”HACR Corporate Best Practices.” PepsiCo’s commitment to
diversity, and retention is spotlighted.

Adage magazine feature “Special Report/Women to Watch” spotlights Rebecca

Johnson, Vice President, Ethnic and Urban Marketing for Frito-Lay North America.

Worth Magazine names Steve Reinemund, CEO of PepsiCo, as “Up & Coming CEO to
watch”

A study in the Wall Street Journal by the Hispanic Association on Corporate

Responsibility reports that PepsiCo is mentioned among the “Top Corporations that are
increasing the Representation of Latinos in Middle to Upper Management Levels”

Pepsi-Cola receives EFFIE 2002 “Advertising Awards” for Cap’s Crunch “Dual
Target” and life cereal “Life is Full of Surprises.” Advertisements.

Fortune magazine names PepsiCo to its of the “50 Best Companies for Minorities.”

44
Shareholder Value Magazine lists PepsiCo among “The shareholder Value 100,” a list
of top-performing companies.

PepsiCo is named one of America’s strongest, best-known corporate brands, according

to a brand image study from Core Brands

The Environmental protection Agency (EPA) recognizes PepsiCo as a Commuter

Choice Employers Champion and a pioneer in the goal of “Providing employees with
benefits that help improve the environment and reduce the number of Cars on the
road.”

Ronald Harrison, Senior Vice President, Global Diversity and Initiatives, is honored
with the “Yitzhak Rabin Peacemaker Award” for his leadership in the areas of diversity
and inclusion and his efforts in bringing corporate and community Members together.
The award was given by the Coalition for Mutual Respect.

Supply Chain Technology News names PepsiCo among the year’s” Ten Best Supply
Chains” Other companies include IBM, Target Corp; General Electric co ; E.I. du Pont
de Nemours & co; Ford Motor Co; Best Buy Co.; Johnson & Johnson; Gillette Co and
Uniliver.

Diversifying. Com, an online publication devoted to diversity, names PepsiCo to its list
of the “Top 50 Companies in Diversity for 2001” PepsiCo is #19 overall and #10 in
Supplier Diversity.

Fortune magazine ranks Indra Nooyi, PepsiCo President & CFO #4 on the “Most
Powerful Women in Business” List.(Up from #10 in 2001).

Global Finance names PepsiCo among its Best Companies in North America for 2002
in the Beverages category.

Pepsi-Cola North America is one of four companies honored with a Multicultural

Excellence Award by the Association of National Advertisers (ANA) for it’s 2001 spot
“Brazil” string musician Cycle Jean playing music on a Rio de Janeiro beach.

45
Supply Chain Technology News (November 2002) names PepsiCo among the year’s
Ten Best Supply Chains.

PepsiCo selected as a “preferred employed” in a survey of over 3,500 minority

students at 53 universities. The results were published in THE BLACK COLLEGIAN
magazine.

PepsiCo is named National Corporation of the Year by the NY/NJ Minority Purchasing
Council at their 2002 Awards Gala.

IN YEAR 2003

Starbucks Doubles hot Espresso & Cream named one of the top new products of 2002
by Beverage Industry trade magazine.

Britney Spear’s Super bowl spot wins “Bobby Award” for best performance by a
celebrity.

Clark Retail Enterprises, operator of more than 900 convenience stores in the Midwest,
president Dawn Hudson is named 2002 Advertising Woman of the Year by Advertising
Women of New York.

The Dallas/Fort Worth Minority Business Development Council (DFW MBDC)

celebrates by honoring three individuals- one for each decade the council to excel in
the development and success of the minority business community. Two of the three
individuals honored are from Frito-Lay International for the period 1983-1992 and
Jerry Martin, senior vive president, global purchasing, for the period 1993-2002.

The U.S. Pan American Chamber of Commerce presents PepsiCo President and CFO
India with the Women’s pioneer Award.

Fortune names PepsiCo the most admired company in the beverage business and the
most innovative company across all industries.

PepsiCo ranks No. 1 within soft-drink industry in the Wall Street Journal’s”
Shareholder Scoreboard.”

46
PepsiCo is named to the “Elite Eight” list for the Women’s Business Enterprise By
Women’s Business Enterprise National Council (WBENC).

BBDO New York and Pepsi-Cola North America share the American Advertising
Federation’s first-ever Grand Eddy Award for more than two decades’ worth of
outstanding creative efforts.

Frito-Lay receives Star of Energy Efficiency Award from the Alliance to Save Energy.
Frito-Lay is recognized for its “Star Fleet Initiative” a company-wide productivity
strategy for 45 manufacturing and 200 distribution centers in North America. Two
years into the project, Frito-Lay has achieved half its energy savings goals, water use
down 10%, electricity use down 11%, through projects, process re-design and focused
awareness and training programs.

Global Finance names PepsiCo as “Best Free Sculpture Garden” November 2003
issue.

Frito-Lay is named “Corporation of the year” for its supplier diversity program by the
North Texas MED Committee.

PepsiCo receives corporate “champion of Child Care Award” from the Child Care
Council of Westchester, Inc. The award recognizes PepsiCo’s commitment to helping
employees balance their work and home lives and home lives as will as the
corporation’s support of organizations associated with families and children, including
child care centers.

PepsiCo’s Vice President of Supplier Diversity, Bob Gonzalez is awarded the

Corporate Procurement Award by the National Hispanic Business Group. The award
recognizes industry leaders in corporate America who have been instrumental in
assisting the Hispanic business community.

Rose Broussard of Frito-Lay is recognized as Women’s Enterprise magazine as one of

their six 2003 Women of Excellence in Texas.

The New York/New Jersey Minority Business Development Council names Fred
Canady Coordinator of the Year.

47
Based on results from the Universum Survey American Diversity Edition 2003 – the
Black Collegian names PepsiCo among its Top 50 Diversity Employers 2003.

PepsiCo is Honored by the National Hispanic Corporate Council (NHCC) for being
selected to Fortune’s 2003 list of “50 Best Companies for Minorities.

IN YEAR 2004

The National Association for Female Executives (NAFE) names PepsiCo among the
“NAFE Top 30 Companies for Executive Women.”

Sam’s Club recognizes the PBF Gatorade Sam Club’s team as its 2003 Supplier of the
Year. The award recognizes excellence in key performance areas, including sales
growth in stock percentage, inventory turns as well as accomplishments in brining
innovative products and business solutions to market.

Governance Metrics International gives PepsiCo its highest rating (10). PepsiCo is one
of only 22 companies to receive the perfect score.

Institutional Shareholder Services (ISS) ranks PepsiCo 96.5 and 100, meaning that on
corporate governance matters, PepsiCo outperforms 96.5% of the S&P 500 and 100%
of the food, beverage and tobacco industry.

Pepsi-Cola Wins ‘Reggie Award’ for Black History Month Promotion. Pepsi-Cola
recently received a Reggie Award, the most prestigious award in the promotion
marketing field, for its 2003 “Black History Month: /Create Your Own History”
promotion, Brand week reports.

PepsiCo named to Business Week 50, an annual ranking of companies that “symbolize
the best in Corporate America.”

The Women President’s Educational Organization (WPEO) recognizes PepsiCo as

Outstanding Corporation from the New York Region. The selection criteria is based on
the contributions made to women business owners and the women’s business
community.

48
PepsiCo is recognized as one of “America’s Top Corporations for Women’s Business
Enterprises” be WBENC for the second year in a row.

Diversity ranks PepsiCo #5 (up from #25) in its 2004 list of “Top 50 Companies for
Diversity” Pepsi also ranked first in the “Top 10 Companies for African Americans”
and the “Top 10 Companies for Latinos.”

In Year 2005

Hispanic Magazine names PepsiCo one of the "100 Companies Providing the
Most Opportunity for Hispanics"

PepsiCo included on Div50 list of the Top 50 Corporate Buyers of Diversity

Products and Services in the U.S. awarded by DiversityBusiness.com

Fortune names PepsiCo #1 in Consumer Food Products in its survey of

America’s Most Admired Companies.

The National Association for Female Executives (NAFE) names PepsiCo

among the "NAFE 2005 Top 30 Companies for Executive Women."

Governance Metrics International released its semiannual corporate

governance ratings for 3,200 companies. PepsiCo scored 10 out of 10. Only
three companies in the US have achieved the highest overall score for four
consecutive semiannual reporting periods – PepsiCo, Colgate-Palmolive and
Praxair.

California Waste Reduction Awards Program (WRAP) , Frito-Lay’s Modesto

plant is a Top-10 WRAP of the Year winner for 2004

Second Annual CPG & Retail Excellence Awards names PepsiCo

Manufacturer Innovation of the Year

Pepsi’s “Cindy Crawford” Commercial Most Viewed 2005 Super Bowl Ad on

The America Online Service

49
Institutional Investor Magazine Ranks America’s Best CFOs Under Consumer,
Beverages, Indra Nooyi, PepsiCo

Global 100 Most Sustainable Corporations in the World, 2005 List Innovest
Strategic Value Advisors Inc. lists PepsiCo

Ted Turner, Tom Burrell, Harry Jacobs and Roger Enrico Elected to
Advertising Hall of Fame

Latina Style Magazine, a national magazine for the contemporary Hispanic

woman, selected PepsiCo as one of the Latina Style 50 Best Companies.

New York Urban League Honors PepsiCo for Diversity recognizing

corporations for corporate citizenry, hiring, supplier relations and philanthropic
practices.

Institutional Investor named PepsiCo Chairman and CEO Steve Reinemund as

the top CEO in the beverage industry.

Institutional Investor Research Group’s ranking of the best U.S. investor

relations efforts, PepsiCo was the top company in the beverage sector.

DiversityBusiness.com ranks PepsiCo #17 on its list of “America’s Top

Organizations for Multicultural Business Opportunities.”

Diversity Inc’s Fifth Annual Top 50 Companies for Diversity Survey, PepsiCo
ranks as No. 4 overall. PepsiCo is No. 1 for African Americans, No. 1 for
Latinos, No. 2 for Recruitment & Retention, No. 4 for Asian Americans, No. 5
for GLBT Employees, No. 8 for Supplier Diversity.

Innovaro ranked PepsiCo as one of the 20 most innovative companies in the

world.

Women’s Business Enterprise National Council listed PepsiCo in the top 15 list
of “America’s Top Corporations for Women’s Business Enterprises” and in its
“15 Corporations Attain World-Class Status in Supplier Diversity”

50
PepsiCo’s Lampoon Plant received the “Certificate of Gold Level” from AIDS
Response Standard Organization (ASO Thailand) sponsored by Department of
Labor Protection and Welfare, Ministry of Labor

Barrons, “Top 30 CEOs” names PepsiCo’s Steven S Reinemund.

The Hispanic Association on Corporate Responsibility Ranks PepsiCo #3 on

its Corporate Index on inclusion of the Hispanic community in business.

PepsiCo Chairman and CEO Steve Reinemund is named one of Best Managers
of 2004 by Business Week.

Texas State Senate honors retired PepsiCo Vice Chairman and Frito-Lay North
America Chairman and CEO Al Bru with a resolution for his contributions to
the Texas economy and his leadership.

PepsiCo receives top honors for innovation from Information Resources Inc.
for development of an analytics insight tool.

Taco John’s names Pepsi its Beverage Supplier of Choice.

BJ’s Wholesale Club names PepsiCo Vendor of the Year.

For the second consecutive year, Sam’s Club names Gatorade its Supplier of
the Year.

Good Housekeeping magazine names Tropicana Homestyle Best Supermarket

Orange Juice.

Sizzler names Pepsi-Cola North America food and beverage Vendor of the
Year.

Health magazine names Quaker Take Heart Instant Oatmeal as the “best hot
cereal” in its first annual Best Foods Awards.

51
SoBe’s web site wins the People’s Voice Award in the food and beverage
category of the International Academy of Digital Arts’ 9th Annual Webby
Awards.

PepsiCo receives the Corporate Achievement Award from the University of

Maryland’s Smith School of Business for its efforts to foster a diverse
corporate culture.

The Texas Diversity Council recognizes Frito-Lay with the “Best-in-Class

Diversity and Inclusion Practices” award, which recognizes companies that
attract, select, develop and maintain diversified and qualified talent in order to
complete in a diversified workplace.

PepsiCo “Celebrating Us” week held in Purchase, NY wins top prize in Profile
in Diversity Journal’s International Innovation in Diversity Awards.

PepsiCo named One of the World’s Top 10 Companies for Innovation and
Excellence in Executive Development by Executive Development Associates
(EDA), a global executive development firm.

PepsiCo and PBG Named to Black Enterprise 30 Best Companies for

Diversity list.

PepsiCo wins Sodexho “Spirit of Service” Vendor of the Year Award.

Wal-Mart names QTG Sales its Supplier of the Quarter.

National Business Group on Health recognizes PepsiCo for its commitment to

promoting healthy lifestyles for its employees with the Best Employers for
Healthy Lifestyles award.

Industry Week names PepsiCo one of the 50 Best Manufacturing Companies

among the largest 500 publicly held manufacturers headquartered in the United
States.

Fortune names PepsiCo a top employer for minorities.

52
Global Finance magazine names PepsiCo one of the Best Companies in North
America for 2005.

PepsiCo scores 10 out of 10 on Governance Metrics International (GMI)

global ratings for the fifth consecutive time.

Barron’s ranks PepsiCo as the 12th most respected company on its list of the
World’s Most, and Least, Respected Companies. The list includes the 100
largest companies by market value.

PepsiCo scores 100% on the Human Rights 2005 Corporate Equality Index.

Frito-Lay distribution center in Rochester, NY is certified by the U.S. Green

Building Council and was granted LEED(Leadership in Energy and
Environmental Designs) Gold status, one of the highest energy efficient
standards in the industry.

Frito-Lay is named one of America’s Safest Companies of 2005 by

Occupational Hazards magazine.

PepsiCo is named to the Top 100 Diversity Employers list by Black Collegian
magazine.

Frito-Lay’s 24-count Multi-Sack variety pack won the Institute of Packaging

Professional's (IoPP) Integrity Award, one of the industry’s top awards, at this
year’s Ameri Star Packaging Awards.

PepsiCo Quiznos Team Receives Vendor of the Year Award.

According to a report by a JP Morgan analyst, PepsiCo has the best board of

directors among American beverage companies.

PCNA Web Site Named Best Marketing Web Site of the Year by AdAge
magazine.

Fortune’s list of the 50 Most Powerful Women in Business include PepsiCo’s

Indra Nooyi, Irene Rosenfeld and Dawn Hudson.

53
 Fortune names PepsiCo among the Top Employers for Women.

Sabritas, in its first year as a contestant, awarded the distinction of "Socially

Responsible Business" by the Mexican Center for Philanthropy.

In Year 2006

PepsiCo named winner of the best-integrated marketing campaign during

the Globes Awards sponsored by the Marketing Agencies Association (MAA)
Worldwide. Pepsi Wins Award for Indian Cricket World Cup Campaign by
Marketing Agencies Association Worldwide.

PepsiCo Recognized as one of the "20 Most Influential Multi-Nationals in

China." by China Business News.

Institutional Investor Releases 'Best CEOs' list; Reinemund Tops Beverage

Leaders.

Chinese College Students Name Pepsi Among Top Ten Brands.

Fortune Magazine calls PepsiCo "one of the best run companies in the
country.”

PepsiCo Wins Sam’s Club ‘Supplier of the Year’ Award.

Institutional Investor Identifies PepsiCo as one of America’s Most

Shareholder-Friendly Companies.

PepsiCo Ranks as 15th Most-Admired Company on Fortune's List of the Top

20.

Gatorade Mexico Named Wal-Mex 'Supplier of the Year'.

PepsiCo Officially Observes $100 Billion Market Cap Milestone.

EARLY PEPSI-COLA BOTTLES

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The early Pepsi bottles with specific cities and states on the label fall into three broad
categories.

The first group is defined as the “Double Dot” , Red/White/Blue label bottles. Included
are the first painted label bottles produced in the early forties by Pepsi. This group of
bottles is in much demand by collectors, and generally command a $25.00 price range
if in a high grade condition.

Group two is described as the “Double Dot” , Red/White label bottles. They were
distributed from the mid 1940’s to about 1950. The price range is from $8.00 to
$12.00.

The third group is the “Single Dot” , Red/White label bottles which were filled
between 1951 and the late 1950’s. The value of this group is $5.00 to $8.00 to brand or
cities collectors because of the large quantities produced.

Two other unique generations of the above mentioned groups exist, referred to as the
“2 FULL GLASSES” (2FG), and the “ FOUNTAIN SYRUP” (FS) bottles. The (2FG)
bottles exist in all three groups of cities bottles, and are valued at about $15.00 more
than the regular bottles. The (FS) bottles are very rare and command an $8.00
premium. They have been reported only in the last two groupings.

COMPETITION OF PEPSI VS COKE

55
 COMPETITON

(Real war between Pepsi & coke)

Every food companies have their competition. Pepsi’s main competitor is Coca-Cola
co. Both have been selling thirst quenchers for 100 years that are now global brands.
Their bottles move through the world’s most pervasive distribution network.

Coke is mainly a franchise driven operation with a company supplying its soft drink
concentrate to its soft bottles around the world Coke management releases that a soft
drink is a convenience as well –as an – impulse product. According the – company’s
expertise lies in consumers marketing. Idea is to reduce the effect span as Also coke
will be experimenting with mobile dispensing units at beaches and stadiums going out
towards consumers the much as possible. Cokes infrastructure plan include setting up
new subsidiaries. It is also considering a 35 Greenfield venture to set-up a model plant
in westerns corridor most likely in Gujarat. This will have 4 product lines with a
capacity of 600 bottles per minutes with a build in flexibility to about top different and
flavors and sizes. Another option for building capacity is to bringing in bottlers from
overseas to invent jointly in fresh capacity. The company wants to go a stem further
and set-up COCA-COLA institute a training facility for bottlers. Coke continues to stay
with its multi brand strategy. This enhances the ability to leverage self-space at the
retail outlet. It also gives then flexibility to offer price on brand others then lead once.
Coke has launched MAJA pineapple and MAJA orange. As far as new product
launched is concerned coke plans a dual brand approach by bringing in FANTA lemon.
This comes about because volumes of LIMCA have increased by 20% shares, which
have an 80% - share of the cloudy lemon segment—So this dual brand approach will
extend to that flavors too. Pepsi’s decision to take in company owned bottling
operation (COBO) alongside franchise has proved to be winning edge over its
competitor. By 1994 Pepsi’s has bought over five bottles in the key markets. This
ensuring maximum control. The franchise now sees the company not just as advisor
but also as carrying the weight of experience. Company system and franchisee system
can now be properly aligned to meet the required objectives.

On expanding reach and availability 80% of all cold drinks are consumed at the point
of purchase (POP) rather than at home. The fountain initiative has paid off in higher of

56
countrywide and they offer consumers a whole new way experience soft drinks. Also
expanding teach and availability. Coke tied up with Indian oil to set up dispensing units
at petrol pumps. Pepsi followed suit by striking a deal with Bharat Petroleum.

Pepsi has mainly focused a brand Pepsi. Their strategy has been to keep pace with the
market growth rate in non-Colas but to emerge as the definite cola they have put there
might behind the brand Pepsi as the flagship brand. In 1987, Pepsi ranked 29 in the
fortune list of the 500 largest industrial corporation in the U.S. Coca Cola was way
down at 54, while Pepsi Co. improved its position from 34 in 1986 Coca Cola tumbled
to 38 after missive public out cry, the company had to reintroduce the original coke
classic. Pepsi has so far made in roads in 151countries (150 before India) including the
much-publicized ventures in the soviet Union and China. Patience in Pepsi Co.’s long
suit. At the base of every beverage business lies the all important secret formula of
success the “Concentrate”. In India the concentrate is prepared by Pepsi food limited
representatives of Pepsi-Cola international.

They came, spent, and conquered. The size of their combined business adds up to more
than Rs. 5500 Crore. The equity investment put in it tots up to a humungous $ 1347
million (Rs. 5700 crore). Yet almost 10 year after Pepsi Coca-cola Company entered
India, birth are yet to turn a profit. Their accumulated losses are estimated to over Rs.
800 Crore. In a bid to comer a larger market share, invariably, either Pepsi or Coke
ends up raising the stakes to a point where the math simply doesn’t add up. Just that
the two cola giants have been in an unseemly hurry to grow the Indian market and, at
the same time deny each other any advantages, irrespective of whether it makes
economics sense. In the mid 90’s breakeven was pegged at 40 million cases. Today,
both players together do 150 million cases, but break-even is still elusive. The battle
spilled into almost every area of operations in early 1999, that discounts were also
unleashed. If the industry norm was around three to four bottles free with every case,
the Cola majors began to offer six to seven bottles. In 2000 particularly in the month
coke went berserk, giving 500/0 discounts.

Both cola warriors targeted a clutch of key accounts about 67% of the total retail base,
primarily restaurants, movie halls and hotels. In many cases the owner would play one
against the other and drive a hard bargain. In may cases the cola companies. Paid close

57
to Rs. 100 per case of expected off take as advance to secure a monopoly over the key
account.

The gross margins –o~ a case of returnable glass bottles was just Rs. 40. In India, a
single-serve P & T bottles was simply not cost effective.

Aluminum cans too suffered from the same problem effective. Aluminum cans too
suffered from the same problem. Now every year, both companies had to invest in
fresh glass capacity and crates. Back-of-the envelop calculations suggested that to put
an additional million bottles in the market required close to Rs. 40 crore investment in
glass and carats, and glass bottles had to be replaced every four year after they had
done 40 cycles, during which time depreciation had been charged. Till the cola
companies began to concentrate on the urban centers. As soon as they pushed into the
winter land, the first sings of problems surfaced. In a state like Tamil Nadu the off take
per 1000 people was barely 0.9 as a result, when a Pepsi or a coke truck went into
interior markets, the glass simply wouldn’t come black fast, either consumption was
low or the volumes were being split between the volumes were being spilt between the
two competitors as a market. But that would have been completely out or character for
the company. “it is a bit like asking the Brazilian Soccer team to adopt German-Style
total football”. Across global market Pepsi has always reveled in grabbing share away
from coke. But in India it finds itself in a peculiar position. It is the Numero Uno
brand, outselling both coke and Thums up put together. That’s helped Pepsi’s Indian
team to build quite a reputation. Pepsi has managed to constantly find ways to connect
with the youth. So it Coke is the universal drink, which cuts across-age groups, Pepsi is
the icon of the real cola quaffers Young-people between the ages of15-29.

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 ENTRY OF PEPSICO IN INDIA

ENTRY OF PEPSICO IN INDIA

In 1977, a change in the government at the center led to the exit of coca-cola which
preferred to quit rather to dilute its equity to 40% in compliance with the Foreign
Exchange Regulations Act (FERA).

The beginning of 1980’s saw the birth of another cola drink “Thums Up” the Gold Spot
people launched it in 1978-79 as “Refreshing Cola”; in 1978 Parle led the Indian soft
drinks market (share33%) with its Gold Spot and Limca brands. In 1987 pure drinks
share came down to21% as a result of growing popularity of Limca and Thums Up. At
the same time the threat to the Indian soft drinks market was that of fruit drinks.

In 1988, fruit drinks market was valued at Rs. 40 crores and was growing at the rate
0/20%. In early 1985, the government rejected a proposal with the R.P Goenka Group.
This involved the export of fruit juice concentrated from Punjab in return for the
import of Cola-Concentrates. The deal offered was 3:1 export-import ratio in return for
being allowed to market Pepsi in India. The Rs.22 crores Pepsi Co project/package was
the second bed by the U.S. headquarters MNC to inter India. Pepsi Co would have an
equity holding of 39%, Punjab Agro Industries Corporation (PAIC) 20% and Voltas
24%. The bad to be financed privately from loans. A. project approval board was
finally set in February 1988.

Pepsi’s shares which have been originally just under 40% was whittled to about 35%
and PAIC’S share was hiked to 40% these were mainly the issue in which COKE had
left India in 1977. Thus Pepsi not only accepted the conditions but also went much
further. Now the victory for Pepsi who after more than 5 years of acrimonious battle
was launched in June 1990 selectively in Rajasthan, Punjab, Uttar Pradesh and South
as “SAHAR-PEPSI”.

59
In 1991, saw a major launch of 7Up and Mirinda in India, which was warmly received
by Indian customers & consumers. 1993 was new beginning for fountain Pepsi (PMX).
Pepsi achieved the no.1position in India. In 1996 Mirinda attained no. 1 position in
orange beverages category.

May 1998 saw major launch of Mirinda lemon in India around 70% of the total sales
came from established markets of North America.

Pepsi has major branch namely:

Pepsi: Diet-Pepsi; Mountain Dew

7-UP: Slice and Miranda (orange.& lemon)

Mr. Ramesh Vengal was the first Managing Director who was here till April 1992. Mr.
Suman Sinha the current

President took over from him after a long inning with Hindustan. Lever Ltd. (HLL)
During these years the beverages business has grown rapidly from 3 million cases to
60 million cases and is paced for annually through 7,50,000 retail outlet across the
country. It generates annual sales of approximately Rs.2, 500 Crores (which includes
exports of Rs. 300crore) and a presence in the nascent juice market with Tropicana
(sales, Rs. 50 crore).

PEPSICO INDIA

 Pepsi is one of the most well known brands in the world today available in over
160 countries. The company has an extremely positive outlook for India.
“Outside North America two of our largest and fastest growing businesses are
in India and China, which include more than of the world’s population.”
(PepsiCo’s annual report, 1999)
 This reflects that India holds a central position in pepsi’s corporate strategy.
India is a key market for PepsiCo and at the same time the company has added
value to Indian agriculture and industry. PepsiCo entered India in 1989 and is

60
 concentrating in three focus areas- Soft drink concentrate snack foods and
vegetable and food processing.

 Faced with the existing policy framework at the time, the company entered the
India market through a joint venture with Voltas and Punjab Agro Industries.
With the introduction of the labialisation policies since 1991, Pepsi took
complete control f its operations. The government has approved more than Us$
400 million worth of investments of which over US$ 330 million have already
flown in.

 One of PepsiCo’s key strategies was to develop a completely local management

team. Pepsi has 19 company owned factories while their Indian bottling
partners own 21. The company has set up 8 Greenfield sites in backward
regions of different states. PepsiCo intends to expand its operations and is
planning an investment of approximately US$ 150 million in the next two-three
years.

Introduction

With a legacy of decades in the industrial arena. The Jaipuria Group of Companies now
stands at the one thousand five hundred Crore mark. The group boasts of its several
world-class business arenas like those of Textiles, Bottling. Education, information
technology, food chain and Retailing, apart from numerous other business segments.

Jaipuria Group is a Rs. 1500 Crore, family controlled, reputed business house with
over a century of operations in diversified fields.

The group as on today can boast of expertise and leadership in the fields of food and
beverages, textiles and real estate development with varied interests in a wide range of
products and services.

The Jaipuria Group under the leadership of the three brothers SK Jaipuria, RK Jaipuria
and CK Jaipuria has today become one of the leading business houses of the country.
The following are the major areas of operations of the Jaipuria Group:

 Food and Beverages

 Textiles

61
  Information Technology

 Real Estate

 Education

Presence of Jaipuria Group in India:

Offices & Plants: 1. New Delhi 2. Mumbai 3. Kolkata 4. Chennai 5. Hyderabad 6.

Agra 7. Guwahati 8. Chandigarh 9. Lucknow 10. Varanasi 11. Patna 12. Jaipur 13.
Indore 14. Bhopal 15. Gwalior 16. Vishakhapattanam 17. Udaipur 18. Goa 19.
Dharwad 20. Jamshedpur 21. Noida 22. Cuttack

Jaipuria With Pepsi

The Jaipuria Group, since 1975 has been a renowned and reputed name in the field of
soft drink bottling. Since its foray into this field the Group has bottled almost all the
major soft drink brands that existed in India like Coca Cola. Thumsup, Limca and
Pepsi etc.

Today the Jaipuria Group commands almost 60% of the Pepsi business in India. With
an impressive turnover and plants equipped with the latest technology the Jaipuria
Group can boast of being the biggest name in the country when it comes to soft drink
manufacturing.

The Group has major presence in most part of the country, with its 22 fully operational
plants running successfully across the country.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about
$25 billion and over 142,000 employees. The company consists of the snack
businesses of Frito-Lay North America, Gatorade/Tropicana North America and Frito-
Lay international; the beverage businesses of Pepsi-Cola and PepsiCo Beverages
International and Quaker Foods North America, manufacturer and marketer of ready-

62
to-eat cereals and other food products. PepsiCo brands are available in nearly 200
countries and territories.

Many of PepsiCo’s brand names are Voer 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company, including Gatorade, in 2001.

PepsiCo’s success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high integrity of our people.

Price list

Name Bottle Size MRP (in Rs.)

Pepsi Per Bottle 200 ml 8

Pepsi 300 ml 10

Pepsi 500 ml (Plastic) 20

Pepsi 2 litre 50

Diet Pepsi (Can) 250 ml Can 25

Pepsi (Can) 250 ml Can 25

Table No. 3

63
 PRICE PER CRATE OF PEPSI

Maximum retail price of 300 ml bottles is controlled by the Central Government. The
other size and packs are priced keeping factors like competition, internal costs, external
costs, the corporate objective of the company in the mind.
PRODUCT SELLING PRICE MAX.RETAIL PRICE
(Per crate) (Per crate)
300 ml bottles 168 192
500 ml bottles 264 288
1 Liter bottles 466 480
Soda 300 ml 144 168
Cans 312 312
1.5 Liter PET 334* 336*
Bottles

Table no. 4

Price per bottles the empty bottles are priced at Rs 120 per crate and
the shell at Rs 100

Coke Comes to India

64
Coca-Cola come to India with fanfare in the fifties. For a number of days, The
Hindustan Times and other newspapers of Kanpur carried full page advertisement
showing a big boy in uniform with a soft-drink crown as the cap. There was no
indication of the product. After a few days, Coke was introduced. It was an entirely
new drink which fascinated people. It soon became the national drink. For the first
time, a soft-drink was available from one corner of the country to another. The person
who brought Coca-Cola to India was the father of late Sardar Charanjit Singh, Sardar
Mohan Singh. A practical man Mohan Singh realised that to popularise Coca-Cola, and
make it a best seller it was necessary to “catch them young.” So he focused on
youngsters in the society.

The company realized that to become a mass consumption product, one has to go to the
village. They gave much importance to the distributive network. The company trucks
supplied coke to even the remotest village.

Few products appears to be more similar than soft drinks, yet the Cola wars that mark
the competition between Coke and Pepsi show how even organizations with highly
similar product can be differentiated by their business strategies. Then came battles
over the issue of bottle size standardization. Coke the arch rival tried to offering more
Cola at a lower price. Pepsi which had some of its early investment tied up in 250ml
bottles, went the fountain way. The General bottle size freed has settled at 300 ml. ,
100 ml more than the pre MNC standard. Fountain mix dispensers, carry home bottles,
even 1.50 plastic bottle with caps good enough to keep them lying down and still
preserve the fizz.

It poured in vast sums to whip up its visibility at the retail level, so that consumers
were greeted virtually at every street corner by Pepsi’s blue, red and white colors,
because they have perception “the thing on display sells more.”. Coca-Cola is, finally,
redoing the real thing to the replicate the success that its arch-rival, PepsiCo., has
achieved with its fast and furious marketing. But to win them, Coke is copying Pepsi .

65
 HISTORY OF COCA-COLA
Jon Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta,
Georgia it was May 1861 when the pharmacist concocted a caramel colored syrup in
three–legged brass kettle in his backyard. He first distributed the new product by
carrying Coca-Cola in a jug cown enjoys in a glass of Coca-Cola at the soda fountain.
Whether by design or accident, carbonated water was teamed with the new syrup,
producing a drink that was proclaimed “Delicious and Refreshing”.

Dr. Pemberton’s Partner and bookkeeper, Mr. Frank Robinson, suggested

the name and penned as “Coca-Cola” in the unique flowing script that is still famous
worldwide today.
Dr. Pemberton’s sold 25 gallons of syrup, shipped in bright Red wooden
kegs. Red has been a distinctive color associated with the No.1 soft drink brand ever
since. For his efforts, Dr. Pemberton grossed $ 50 and spent $ 73.96 on advertising,
by 1891, Atlanta chemist as a G.Canler had acquired complete ownership of the Coca-
Cola business.
He purchases it from the Dr.Pemberton family for $ 2300. With in 4 year his
merchandising flair helped to expand the consumption of Coca-Cola to over $25
million.
Robert W. woodruff become the president of the Coca-Cola company in 1923 and his
more than six decades of leadership took the business of commercial success making
Coca-Cola an institution the world over. Coca-Cola begins as a never tonic, but candy
merchant Joseph A. Biedenharn of

Mississippi was looking for awry to serve refreshing beverages. He responded to this
demand began offering bottle Coca-Cola using syrup shipped from Atlanta, during a
hot summer in 1894.

HISTORY IN INDIA

66
 The coca-cola company reintroduced coca-cola in India on October 23,
1993, after an absence of 16 years.
The coca-cola company received approval from the government in July 1996 to set up
a holding company to invest US $ 700 million in downstream operation of beverages

In July 1997 the holding company was permitted by the government to

operationally its bottling subsidiaries.

The bottling subsidiary currently owns and operates twenty-six bottling

plants and sixty distribution centers across India. In addition, it uses 20 contract
packers to augment its production capacity and cater to the increasing demand for its
wide portfolio of beverage.

PROMISE BY COCA-COLA

The coca-cola company exists to benefits and refresh every one it touches. The basic
proposition of our business is simple , solid and timeless . when we bring refreshment ,
value , joy and fun to our stakeholders then we successfully nurture and protect our
brand , particularly coca-cola . that is the key to fulfilling our ultimate obligation to
provide consistently attractive to the owner so four business.

More then a billion times every day , thirsty people around the world reach for coca-
cola products for refreshment. They deserve the highest.

Quality – every time . our promise to deliver that quality is the most important
promise we make . and it involves a world-wide , yet distinctively local , network of
bottling partner , supplier , distributor and retailers whose success is paramount to
our own. Our investment in local communities in
over 200 countries totals billions of dollars in jobs, facilities , marketing, the purchase
of local good and services, and local business partnership. Always and every where ,
we pursue continuous innovation in the products we offer the processes we use to
make them, the package we develop and the way we bring them to market .

67
COMPANY PROFILE
Keeping in view of tapping the Indian soft drink market and also developing soft
drinks as a drinking product among Indians. The Coca-Cola in India has setup an
independent organizations which is H.C.C & B.C.C with a capital of 350 U.S.$ each
by virtue of sellout decision of the passed managing director Sh. S. C. Aggarwal.

CORE BRANDS :

68
 Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most recognized
and admired trademark around the globe. Not to mention the
best selling soft drink in the world.

Sprite: In 1961, a citrus-flavored drink made its U.S debut, using “Sprite
Boy “as inspiration for its name. This elf with silver hair and a big smile was used in
1940s advertising for Coca-Cola. Sprite is now the fastest growing major soft drink in
U.S and the world’s most popular lemon-lime soft drink.

Fanta : The name “fanta “ was first registered as a trademark in Germany in 1941
,when it was used for a few year for a soft drink created from available materials and
flavors . The name was then revived in 1955 in Naples, Italy, when it was used for
the:” fanta “orange drink we know today. It is now the trademark name for a line of
flavored drinks around the world.

Diet coke: The extension of the coca-cola name began in 1982 with the introduction
of diet coke (also called coca-cola light in some countries). Diet coke quickly become
the number – one selling low –calorie soft drink in the world.

BRAND IN INDIAN ORIGIN

GOLD SPOT: this orange cardonate soft drink was introduceB in the early 1950c,
and acquired by the coca-cola company in 1993, its tangy taste has been popular with
Indian teenagers

69
LIMCA: It is thirst-quenching beverage features a fresh and light lemon-lime taste
and lighthearted attitude. The limca brand was introduced in 1971 and acquired by the
coca-cola company in 1993.

MAAZA: Maaza, launched in 1984 and acquired by the coca-cola company in 1993, is
a non carbonated mango soft drink with a rich, juict & natural mango taste.

THUMPS UP: in 1993, the coca-cola company acquired this brand, which was
originally introduced in 1977. Its strong and fizzy taste makes it unique carbonated
Indian cola.

Price list

Name Bottle Size MRP (in Rs.)

Coke Per Bottle 200 ml 8

Coke 300 ml 10

Coke 500 ml (Plastic) 20

Coke 2 litre 50

Diet Coke (Can) 250 ml Can 25

Coke (Can) 250 ml Can 25

Table No. 5

70
PRICE PER CARTE OF COKE

Maximum retail price of 300 ml bottles is controlled by the Central Government. The
other size and packs are priced keeping factors like competition, internal costs, external
costs, the corporate objective of the company in the mind.
PRODUCT SELLING PRICE MAX.RETAIL PRICE
(Per crate) (Per crate)
300 ml bottles 168 192
500 ml bottles 264 288
1 Liter bottles 466 480
Soda 300 ml 144 168
Cans 312 312
1.5 Liter PET 334* 336*
bottles

Table No. 6
Price per bottles the empty bottles are priced at Rs 120 per crate and the
shell at Rs 100

BRAND IN INDIAN MARKET

71
PRODUCT

72
The term soft drink was originated to distinguish the flavored refreshment from hard
liquor. Soft drink was flavored to change the habits of earlier Americans who used to
have hard liquor. The fruits and vegetable juices are not considered soft drinks. Pepsi is
a pure soft drink, which is enjoyed in our 195 countries. It is made of artificial flavors
and contains no fruit juice or fruit pulp.

How soft drinks are made:

Soft drink consists of carbonated water and syrup. Adding carbonated gas to water
under pressure produces carbonated water. The gas makes the water bubble and fizz in
most cases. Syrup is made of a concentrate and sweetener. A concentrate is a blend of
flavor and acid. In concentrate for most soft drinks also include coloring. The
concentrate contains a unique blend of ingredients, which give Pepsi its distinctive
flavor. Syrup can be also being prepared directly from individual ingredients. Carbon
dioxide gas gives beverage its sparkle and tangy taste and prevents spoilage. While it
has not been conclusively proved that carbonation offers a direct medical benefit,
carbonated beverage are also used to alleviate post operative nausea when no other
food can be tolerated. Carbon dioxide is supplied to soft drinks by manufactures in a
liquid form maintained under approximately 1,200 pounds per square inch pressure in
heavy steel containers.

Many of the flavorings found in soft drinks come from natural sources such as fruits
juices and oils obtained from roots, citrus fruit peels, and leaves of various plants.
Some flavoring are artificial, but a similar to natural flavoring in taste. Citric acid and
phosphoric acid give soft drink a tart taste. Caramel is usually used as a coloring in
cola drinks. The sweeteners may come from maize, sugar beet or sugarcane. Artificial
sweetener, such as saccharine and aspartame is used in Diet Pepsi and Diet Coke.

73
 The mixing is carried out under the highest standards of quality control and
accordingly to precise instructions in order to insure that every consumer always
receives a product of the same trusted quality. The bottling of Pepsi in modern plants
such as there are in India is carried out at the rate of 600 bottles a minutes. Pepsi is
approved by the National Health Authorities of every country in which it is sold.

Packaging

Pepsi is supplied in -
 Returnable glass bottles (200 ml, 250 ml, 300 ml, 500 ml,
which is supplied in molded plastic shells.
 1.5 litre PET bottles, 2 lit pet bottle
 200 ml can,330 ml of can.
 PMX machines (Fountain Pepsi)

Fountain Pepsi (F P) Dispenses soft Drinks in plastic cups. There are two methods of
vending soft drinks.

1. Pre-mix system - In the premix system, the finished beverage is prepared by the soft
drink manufacturers and filled into 5 to 10 gallon stainless steel tanks. The tanks of the
beverage are attached to the vending machine where the beverage is cooled and
dispensed.

2. Post-mix system - In post-mix system the vending machine has its own water and
carbon dioxide supply. The water is supplied through Aqua Guard purifier and is
carbonated as required by carbon dioxide cylinder. It is then mixed with concentrate or
flavored syrup which is kept in BIB (Bag in Box) as it is dispensed into the cup. Pepsi
has post mix vending machines and coke has pre mix vending machines.

74
Cans & Bottles - Among the different packages in the market in the next couple of
years could be cans and pet bottles - apart from the standard glass bottles. One of the
standard packages that one is likely to see in the coming years is buying more at lower
price. Pepsi introduced 200 ml bottles of Pepsi at the price of Rs.6. It was an instant hit
while packages of those kinds are also being worked out keeping in view of the rural
market. But it could also lead to the killing of the standard 300 ml size bottles that is in
vogue now. The consumer would get a choice of soft drink at a cheaper and an
affordable price - even if it means breaking of certain standards shapes and sizes of the
packages. The broad strategies of both penetrating the market are still being made. And
the amount of thought that is going into it can be made out from the very fact that the
manufacturers are thinking of such innovations as the “picnic packages” of the brand
for those on holiday trip. The battle will be engrossing as packages will be brought to
the market and be pulled by the competing rivals. There would be price wars and
competitions on qualities.

In the US, 55% of the carbonated soft drink (CSD) is sold today in returnable bottles,
30% on one-trip containers and 15% through vending machines and fountain. In other
parts of the would, Pepsi are sold mainly in

75
returnable bottles. Pepsi in cans are more popular in countries such as US, Canada,
Australia, Philippines and England. Canned Pepsi is also sold in India.

Brands –
The current Indian market consists of seven-flavor segment. Cola segment is by far the
most widely consumed soft drinks.

SEGMENT BRAND
COLA PEPSI
ORANGE MIRANDA
CLOUDY LIME MIRANDA
LEMON
CLEAR LIME 7-UP
SODA EVERESS
MANGO SLICE

Table No. 3
In addition to these segments, Pepsi has developed wide range of soft
drinks such as Diet Pepsi, Caffeine Free Pepsi and low sodium Pepsi, Sugar Free
-Pepsi Max.

76
FOBO

STRUCTURE OF FOBO

PEPSI FOODS LIMITED

Franchisees invest in plant

FRANCHISEE
and in machine, glass
(Bottles) trucks and
(BOTTLERS) infrastructures.

PEPSI INDIA MARKETING

(SALES & MARKETING)

FOBO stands for Franchise Owned Bottling Operations. Entering into FOBO has
helped PepsiCo on several ways. First it has enabled Pepsi to focus on marketing
operation as it has on the operational front Another gain of going FOBO is that since
the franchise have to invest in plant and machine-glass (bottles and)
trucks/infrastructure, the cost burden has been reduced.

77
 Objective
 To measure the satisfaction and dissatisfaction level of Pepsi customers in
Mathura.

 To find the reason behind dissatisfaction if any.

 Remedies to clear the dissatisfaction.

78
RESEARCH METHODOLOGY

79
 RESEARCH METHODOLOGY

Under Research Methodology there are three types of methods for marketing research.
They are as follows:

a) The observation method

b) The experimental method
c) The survey method inclusive of panel method.

In observation method data are collected on the direct observation. No talks take place.
By observing the person the analysis makes the inventory as to product used by him at
his home or kept as retailers stocks. In experimental method it is based on the concept
that small-scale experiment is useful to indicate the expectations of large-scale
experiment. The survey method information is gathered directly from individuals I
three ways:

1. Telephone
2. E-Mail

3. Personal Interview

The survey method is also mentioned as the “Questionnaire Technique” they are also
segregated by:

1) In factual survey
2) Opinion survey
3) Interpretative survey

For my project point of view, the method mainly used are:

1) Survey by route ride

2) Personal interview by questionnaire technique.

80
 1. The survey method by route ride I usually went with Pepsi van also with
salesman. I met the retailers from outlets to outlets. This survey method helps
me a lot to understand about the distribution system and to understand the
problem of retailers and other people.
2. In addition to the personal interview by questionnaire technique. In this
survey method I saw that the respondent was shown the exhibit and
advertisement to give his personal opinion and attitude. In this method the
direct interaction of occurred with the retailers and I could collect the reliable
information from them it has also cost disadvantage that’s why some were
difficult to covered.

RESEARCH DESIGN

The research process designed was conclusive and statistical in nature. Which would
enable the company to take rational decision? This is because the sample size taken
was large and the techniques adopted were for mass data. The date obtained from each
locality was tabulated and the results were obtained in from of percentages.

Data collection sources

I – Primary sources

 Observation – non observation and direct

 Survey- which include various categories of retailers.
 Personal interview

II- Observation

The observation was done by the following meted

 Keeping the markets in view

81
  Keeping the customers and consumers in view
 Interacting with various group of retailers and consumers

III- Survey

Various retailers and consumer with the help of questionnaire

IV- Personal interviews

This method of date collection involves the interviewers asking question in a face to
face con tact situation there in direct personal investigation and the interview inn
properly structured as it involves the use of set of predetermined questions which are
asked in the form and order pre-decided. This technique is preferred as it is
economical, more informative, non responses are low, spontaneous reaction which are
realistic. Lots of supplementary information comes up.

V- Secondary Data

Secondary data consists of information that already exists some where and may have
collected for a different purpose, it provide a starting point.

To select the localities a map of Mathura was used. The list of retailers was obtained
from company officials, designed by company.

Sampling Size: The sampling size of the study is 100 users.

Total Routes in Noida

There are total 21 routes in Noida territory. Apart from the routes there is 3 dealer
route and 7 distributers in Noida territory.

Market Evaluation System

82
It literally means that we evaluate the Market by various means from time to time. Our
evaluation system was based on the four factors:

1. Topography
2. Costumer survey through EDS(Every Dealer Survey)
3. Survey by issuing questionnaire to the customer.
4. Company Issues
5. Limitations
6. Suggestions

Data Collection : - Data is collected from various customers through

personal interaction. Specific questionnaire is prepared for colleting data.
Data is collected with mere interaction and formal discussion with
different respondents and we collect data in PEPSI & COKE and face to
face
contact with the persons from whom the information is to be obtained
(known as informants). The interviewer asks them questions pertaining
to the survey and collects the desired information. Thus, the we collect
data about the working conditions of the workers of COKE; I worked at
COKE contact the workers and obtain the information. The information
obtained are first hand or original in character.

83
FINDING AND ANALYSIS

84
 Finding and Analysis

Costumer Survey

Who are the customer of Pepsi?

Here the costumer is categorized on those who finally sell’s the companies product
to the consumers.

Companies customer are categorized in various sub channels .

The are:

1) Hyper market
2) Super market
3) Convenience and gas
4) Category A self service grocer
5) Cinema –single screen
6) Cinema – multiplex
7) Food service –QSR
8) Food service –food court
9) Food service – food dine/pubs/bars
10) Institution –education
11) Institution –office
12) Institute others
13) Transport railways
14) Transport –bus stand
15) Transport –airport & airline
16) Leisure –amusement park
17) Leisure –clubs
18) Eatery
19) Convenience

85
 20) Grocery – A category
21) Grocery –rest

Literally we can say above are the places where companies distribution channel
are putting there efforts to place their product.

Every Dealer Survey(EDS)

The Every Dealer Survey commonly known as EDS is made every year by the
company. This survey is done every year by the company so that complete awareness
about the retailers and there attachment with he company is observed. The data of EDS
helps in knowing the company’s position among the competitors as well as the
competitors position.

The assessment is done in following ways:

The format of EDS is given as under:

Outlet Name: - Is the name of the outlet.

Contact person: - To whom the surveyor contacts.

Address: - Address of outlet.

Contact no:- Is the contact number of the outlet.

Channel : - Is the category of the outlet.

SIGNAGE

One of the important topic covered under the EDS is signage. Here Signage refers to
visibility of brand names and different flavours in the outlet. There are various ways

86
through which the brand names and different flavours are made visible to the
consumers. They are: Dealer boards

Glow sign boards

Shop painting

Counter rack

Floor rack

One of the important philosophy company follows is: “JO DIKHTA WO BIKTA
HAI” means the thing which is visible in any outlet, consumer demands for it. And this
philosophy of company is very much true. Through the EDS the signage of the
competitor is also concluded. »From the survey it was observed that the routes or
outlets where there is good signage the sale of product is also up to mark. Similarly it
was also noticed that company needs to put some more effort regarding signage in the
week routes.

Chilling equipments

Under this category the chilling equipment of PEPSI and its competetor is
estimated .There are series of chilling equipment of Pepsi and its competitor. They are
namely

PBI code – Chilling machine provided by the company free of cost to the retailers
having goodwill in the soft drink market.

CCI code – Provided by the competitor just as PBI Code.

Outlet own – Chilling machine owned by the outlet.

PBI OYC & CCI OYC – The equipments provided by Pepsi and its competitor
respectively on the payment and the mode of payment is draft.

Other initiative

87
The other initiative are those initiative which supports the signage and makes a
perception on the mind of a consumer. These initiative are (display, combo, HAD etc).
The common initiatives are

1. PHHP
2. FNF.

A Brief Summary Of Direct Interviews

A survey was conducted in which 10 best samples were collected from all the
routes which also include distributors and dealers.

Following are the questions and there evaluation according to the sample answer:

1) Which brand u purchase the most?

When it was asked about the brand preference from the customer the answer varied
from one route to another. In routes like route no-5,route no- 6,route no-7 etc.
which are considered the best route of Mathura the figures are impressive. About
57% of costumer prefer Pepsi and the remaining 33% goes in the hand of the
competitors.

PEPSI Vs COKE in Strong Routes

43
PEPSI
57% COKE

Figure no.1

88
 Where as when it was asked in the routes which company considers it as its week
routes there was marginal difference in the in the figures generated in comparison
to strong routes. The brand preference of customer in the week route is :

PEPSI 39%

COKE 61%

Figure no.2

2)Is there Regular Supply of PEPSI:-

A) Yes b) No

When asked about the regular supply of PEPSI the response was very good the sales
man visited almost every day. The distribution system of Pepsi should be given credit
for the above reason. There are different kind vehicle which the company uses
depending upon the route. And sales man as a driver drives to their respective routes.

3)Does PEPSI salesman behave properly……………………………………

(Stretch on interpersonal relationship)

89
Since the satisfaction level of customer is measured, so the behavior of sale personnel
is one of the important things to be measured in this
context. So talking about interpersonal relationship with the costumer it is quite
satisfactory but some reasons are there which do not supports the satisfaction of the
customer that is the routes for a sales man is never permanent so the sales man faces
difficulty in establishing good relation with the customers.

4)Does salesmen provide you with right scheme given by the

Company………………………………………………………

When the above question was asked the reply of the costumer was satisfactory.
About 60% said YES
About 15% said NO
And about 25% said CAN’T SAY
This is one of the important finding surveyed in different routes.
And some serious decision is to be taken for the cause of “no” and “can’t say”.
One of the suggestions which is to be given for the cause is the scheme should be
known to the customer and the sales man should carry some proof regarding the
schemes announced by the company.

Scheme provided by the sales man:-

Figure no.3

90
 5) If in problem, Pepsi personnel rectifies

a. Within day
b. Within a week
c. Within a month
d. Never
.When asked about problem rectification
65% says (b)
20% says ( c )
10% says that there problem is never rectified, and again this is a serious problem
which is to be considered.
5% says within a day.

6) Are u satisfied by the packaging of the Pepsi product ……………………

When asked about the packaging of Pepsi majority of answers was positive, 90% said
that they were satisfied by the packaging of Pepsi products. 6% wanted change in the
shape and size of c/s, and 4% were not satisfied by the packaging of tetra and pet pack
of slice.

Figure no. 4

91
7) Do your salesman aware you of the display and the seasonal schemes by
PEPSI…………………….
About 70% said they get the awareness.
About 20% said NO.
And 10% said can’t say. (They exactly don’t remember).

Figure no.5

8)Are u satisfied with the display and the seasonal scheame……..

This question resulted in one of the important finding….

About 75 % were not satisfied with the display and the seasonal scheme….
The main reason behind this is delay in the gifts given to the customers.
Rest 25% said yes.

Figure no.6

92
 9)which promotional scheme you do you prefer:
a) related to outlet………
About 55% had given stretch on good signage
About 30% preferred daily scheme.
About 7% prefere discount.
8% had other reasons.

Figure no.7

b) related to consumer……
The answer of promotional scheme of consumer was moving around “stress in
advertisement and scratch coupons” But some answers were related to the price
of soft drink that is “price should be decreased”.

10) Rank PEPSI and COKE with respect to your satisfaction level

This was one of the toughest question for the customers .They faced hesitation on
ranking the two soft drink rivals but ultimately since the answer was to be given by the
customers so they answered:
they ranked :

93
 BRAND PREFERENCES

In a survey done by A & M magazines on the best marketing companies in

India. Pepsi and Coca-Cola were also entered. The results were as
follows :

Pepsi - 4th

Coca-Cola - 11th

The results of 95 were :

Pepsi - 7th

Coca-Cola - 11th

Table No. 8

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MARKETING STRAGGLES OF COMPANY EFFECTS
THE SALES

Yes 55%
No 45%
Table No. 9

Figure No. 8

95
FORM OF MARKETING STRATEGIES

Television Advertising 45%

Newspaper Advertising 5%
Outdoor Advertising 20%
Sales Promotion 30%
Table No. 10

Figure- 9

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RANK 1 to PEPSI

RANK 2 to COKE

Figure no.10

Survey by issuing questionnaire

Through questionnaire survey was conducted in which samples were collected form all
the routes which also include distributors and dealers.

Outlet name:- this is the name of the shop.

Owner name:- is the name of the owner of the shop.

Address:- is the address of the shop.

Contact no:-is the contact no of the shop.

Status:- This is to know the status of the shop that whether it only sales Pepsi or it
only sale Coke or mix. In our survey we find that mostly shops comes under the mix
status
And there are only few shops who sales only Pepsi or Coke.

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Channel:-it is the category of the shops for example- grocery shop, convenience shop,
etery shops etc.

Equipment:- Under this category the chilling equipment of PEPSI and its competetor
is estimated .There are series of chilling equipment of Pepsi and its competitor. They
are namely

PBI code – Chilling machine provided by the company free of cost to the retailers
having goodwill in the soft drink market.

CCI code – Provided by the competitor just as PBI Code.

Outlet own – Chilling machine owned by the outlet.

PBI OYC & CCI OYC – The equipments provided by Pepsi and its competitor
respectively on the payment and the mode of payment is draft.

Signage:- One of the important topic covered under the EDS is signage. Here Signage
refers to visibility of brand names and different flavours in the outlet. There are various
ways through which the brand names and different flavours are made visible to the
consumers. They are: Dealer boards

Glow sign boards

Shop painting

Counter rack

Floor rack

One of the important philosophy company follows is: “JO DIKHTA WO BIKTA
HAI” means the thing which is visible in any outlet, consumer demands for it. And this
philosophy of company is very much true. Through the EDS the signage of the
competitor is also concluded. »From the survey it was observed that the routes or
outlets where there is good signage the sale of product is also up to mark. Similarly it

98
was also noticed that company needs to put some more effort regarding signage in the
week routes.

Program enrollment of Pepsi?

At present Pepsi has two sales promotion schemes first one is Food And Fizz and
second one is PHHP.

How much stock do you have in hand?

. This is done for both Pepsi and its competitor so that the current fulls availability can
be estimated.

Which are the top three products according to the shopkeeper?

. This is done for both Pepsi and Coke so that the top three brands of both the
competitors can be estimated according to our survey the top three products of Pepsi
are i) Pepsi ii)Slice and iii)Mirinda orange and in Coke i)Thumps UP
ii)Limca and iii)Maaza

How do you rate both the company’s on a scale of 0-10 for the parameters:-

a)Stock delivery

b)On emergency order

c)On equipment maintenance:-

d)On availability of all packs and flavours:-

this question helps us to know the service quality of both the companies.

Age wise liking of the flavours, according to the shopkeeper?

It is to know age wise flavour liking of the peoples of different areas.

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Which is the preferred pack on spot consumption at your shop?

Where there is a small market the consumption of the 200ml is more and in big
markets or big outlets the consumption of 300ml is more.

Which is the most preferred brand/pack/flavours in home delivery at your shop?

This is to know the most preferred brand/pack/flavour in home delivery.

Any suggestions:-
Some common suggestions are:
1) Scheme should be clear to costumers.
2) There should be uniformity in the schemes.
3) The outlet should be provided with proper signage index.
4) There should be regular visit of company officials for the problem hearings
and the remedies to the problem.

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 CONCLUSION
AND
RECOMMENDATION

101
 CONCLUSION

Observation

1) Route vehicles are regular in almost all routes but they reaches to their
destination late. It is observed that the competitor vehicle reaches quite early
and fills the empty glasses , this may be one of the reason of decrease in the
sale.

2) Even key outlets are very unsatisfied with the signage efforts put on by
company even all Pepsi exclusives are not having signage.

3) Complains handling was not proper, there were some old cases or complaints.

4) Big retailer / fat agent are involved in undercutting which should be stopped
immediately.

5) Most of the cooling equipment are not working properly.

6) Due to the shortage of Pepsi product in the market in this season Pepsi could
not reach to that mark where it can reach.

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 SWOT ANALYSIS

STRENGTH:
1) Good market penetration.
2) Motivated channel partner.
3) Well defined routes.

WEAKNESS:
1) All brands were not available in at least 80% shops.
2) Complaint handling was not up to mark.
3) Supply in certain area is very irregular and also route agents are not covering
full routes.
4) Poor signage and display is making the routes week for the sale of Pepsi.
5) Interpersonal relationship with the company officials and the route agent is not
satisfactory.

OPPORTUNITY:
1) It is observed that in some newly establishing areas many new outlets are
opening , Pepsi needs to concentrate on these new outlets and can gradually
increase its sale in these area.
2) Large number of mix outlets can be changed to Pepsi exclusive and coke
exclusive to mix only by luring them good and efficient supply, glow sign and
cooling equipments.

THREATES:
1) Coke is the only nearest competitor and it is catching up in the market
penetration through price skimming and other promotional scheme.
2) Some local brands commonly known as kancha , Tip Top , Shine and the
launch of Catch soft drink a product of DS group are causing decrease in sale in
some areas.

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 RECOMMENDATION

1) Signage :- Majority of outlets are not satisfied with signage and they are also
very unsatisfied with the shortage problem. This problem results in the multiple
problems leading to the marginal level of dissatisfaction. There for it is very
necessary to provide with effective signage to the outlets.

2) Uniformity in the routes of sales agent :- It was observed that none of the
salesmen is permanent to any route but to build up a good interpersonal relation
proper interaction with the outlets should be there so that company can position its
product to the respective routes and outlets.

3) Communication and motivational class :- There is need of proper

communication and motivational class for the sales agent and the employs so
that the can give their best effort and contribute to the target announced by the
company.

4) Display and Seasonal scheme :- If display or seasonal scheme is allotted to

any outlet it is necessary to provide the outlets with the gifts items to encourage
them , so that they can follow the display or seasonal scheme in next season.

5)Complaint handling and its rectification:- To enhance the effectiveness in

complain handling about cooling equipment it is advised to authorized at least
one shop per two route , this will help in complain handling, which is biggest
dissatisfaction in this season .
6) Awareness policies – The outlets needs awareness about the routes and daily
scheme announced by the company . It is recommended that the sales agent

104
should carry some proof , document concerned with the daily scheme so as the
outlets can be satisfied.

ANNEXURE

105
 BIBLIOGRAPHY

 Philip Kotler Marketing Management- (pearsons, eleventh

edition,(PP.06-88.)

 Business world(weekly,date-15.08.2008)

 Out look(weekly magazine, date- 20-08-2008)

 Times of India(daily, date 06.06.2008-2o.08.2008)

 www.Pepsico.indialtd

 By C. R. Kothari Research methodology- (new age, second

edition,( PP 12-75)

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 QUESTIONNAIRE

Outlet name:- ……………………… Owner name:- ………………………..

Address:- …………………………… Contact no:- …………………………

……………………………
.…………………………..

Status:- i)Pepsi ii)Coke iii)Mix

Channel:- …………………….

Pepsi Coke
Equipment:-

Signage:-

Q 1- Program enrollment of Pepsi:-

i) PHHP ii)FNF

Q 2- How much stock do you have in hand?

Pepsi Coke
a) Glass 200ml 300ml 200ml 300ml

b)Pet 500ml 2ltr 500ml 2ltr

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c)Diet

d)Tetra :- i)Slice …….. ii)Maaza…….. iii)Frooti……..

iv)Others………

e)Mineral water:- i)Aquafina…….. ii)Kinley…….. iii)Bislery……...

iv)Others………

Q 3- Which are the top three products according to the shopkeeper?

Pepsi:- i)……………… ii)……………… iii)………………..

Coke:- i)……………... ii)……………… iii)……………….

Q 4- How do you rate both the companies on a scale of 0-10 for the following
parameters:-

a)Stock delivery:-

b)On emergency orders:-

c)On equipment maintenance:-

d)On availability of all packs and flavours:-

Q 5- Age wise liking of the flavours, according to the shopkeeper?

Flavors AGE
5-15 16-25 26-40 40 and above
a) Cola:-

b) Lemon:-

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c) Orange:-

d) Mango:-

e) Diet:-

Q 6- Which is the preferred pack on spot consumption at your shop?

a) 200ml b) 300ml c) 500ml

Q7- Which soft drink you are using?

(a) Pepsi (b) Coke

Q8- Which brand will you prefere of soft drink in a day?

(a) Once a day (b) Twice a day (c) Once a week (d) Other

Q9- WHICH BRAND MORE EFFECTIVE IN ADVERTISING?

(a) Pepsi Co. (b) Coke Co.

Q10- WHICH BRAND HAS CREATIVE AND APPEALING

ADVERTISING OF THE SOFT DRINK COMPANY?

(a) Pepsi Co. (b) Coke Co.

Q11- WHICH BRAND HAVING THE INNOVATIVE AND

EXCITING OFFERS?

(a) Pepsi Co. (b) Coke Co.

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Q12-WHAT HAVE THE MARKET SHARE PERCENTAGE IN
BANARAS ?

(a) Pepsi Co. (b) Coke Co. (c) Othere

Q13- WHICH FORM OF MARKETING STRATEGIES IS MOST

EFFECTIVE IN THE MARKET?

(a)Television Advertising (b) Newspaper Advertising

Q14- ARE THE MARKETING STRAGGLES OF COMPANY

EFFECTS THE SALES?

(a)Yes (b) NO
Q15- WHICH BRAND ARE YOU PREFERENCE TO THE BRAND?

(a) Pepsi Co. (b) Coke Co.

Q16-WHICH PARTICUALAR RATE TO GIVE THE

PREFERENCES?

(a)More Popular (b) Packaging (c) Taste (d) Price

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Q 17- Which is the most preferred brand/pack/flavors in home delivery at your shop?

Any suggestions:-
………………………...............................................................................…………… …
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
…………

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