|Industries served||Beverage (Pepsi, Mountain Dew, Gatorade, Sierra Mist)
Food (Quaker Oats, WBD, Rold Gold)
Snack (Lay’s, Doritos, Cheetos)
|Geographic areas served||Worldwide (more than 200 countries)|
|Headquarters||Purchase, New York, U.S.|
|Current CEO||Indra Nooyi|
|Revenue||US$63.056 billion (2015) 5.4% decrease over US$66.683 billion (2014)|
|Profit||US$5.452 billion (2015) 16.3% decrease over US$6.516 billion (2014)|
|Main Competitors||The Coca-Cola Company, DPSG, Mondelēz International, Monster Beverage Corporation, Hansen Natural Corporation, National Beverage Corp., Kraft Foods Group, The Kellogg Company, ConAgra Foods., Nestlé S.A., Snyder’s-Lance and other beverage, food and snack companies.|
PepsiCo business overview from the company’s financial report:
“We are a leading global food and beverage company with a complementary portfolio of enjoyable brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. Through our operations, authorized bottlers, contract manufacturers and other third parties, we make, market, distribute and sell a wide variety of convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than 200 countries and territories.
Performance with Purpose is our goal to deliver sustained value by providing a wide range of beverages, foods and snacks, from treats to healthy eats; finding innovative ways to minimize our impact on the environment and lower our costs through energy and water conservation as well as reduce our use of packaging material; providing a safe and inclusive workplace for our employees globally; and respecting, supporting and investing in the local communities in which we operate.
PepsiCo was again recognized for its leadership in this area in 2014 by earning a place on the prestigious Dow Jones World Index for the eighth consecutive year and on the North America Index for the ninth consecutive year.”
1. Comprehensive product portfolio with more than 100 brands serving nearly every niche in the beverage, food and snack industries.
Commencing operations in 1965, PepsiCo has become the second largest food and beverage company in the world today. The company earned US$63.056 billion in 2015, second only to Nestlé S.A.. PepsiCo was able to achieve this via strengthening its product portfolio and offering as many different beverages and foods as possible.
The company sells around 100 different brands, of which 22 have each generated more than US$1 billion dollars in 2015. In addition, more than 10 brands have generated between US$500 million and US$1 billion in revenue.
Figure 1. Brand portfolio by world’s largest food and beverage companies
Source: The respective companies’ official websites and financial reports 
Figure 2. PepsiCo’s top earning brands (in US$ billions)
Source: PepsiCo financial report 2011
PepsiCo’s brand portfolio is highly diversified and only The Coca-Cola Company has more brands in the beverage, food and snack industries. No competitor has as many high earning brands as PepsiCo. They each rely on a few main products to earn the majority of their revenue. This makes them very vulnerable to any changes in their core products’ markets.
PepsiCo is better equipped to satisfy the needs of its customers with its wide variety of successful products. The company offers nearly every type beverage or snack and its brands can often be substituted for each other. For example, Lay’s can be replaced with Doritos, Cheetos, Ruffles, Tostitos or Fritos, so if one product doesn’t satisfy a consumer’s needs, PepsiCo can offer many more choices. Therefore, changes in customer tastes do not affect the company as severely as they would other companies.
2. Brand recognition and reputation.
PepsiCo owns and markets some of the most recognizable global brands, including Pepsi, Tropicana, Gatorade, Mountain Dew, Aquafina, Lay’s, Doritos, Cheetos and many other popular brands. According to Interbrand and Forbes, the Pepsi brand is respectively the 24th and 29th most valuable brand in the world, worth US$19 billion in both rankings lists. Forbes also identified Frito-Lay as the 38th most valuable brand in the world, worth US$13.1 billion.
Except for Coca-Cola and Sprite, no other non-alcoholic beverage brand besides Pepsi has been recognized as being one of the top 100 most valuable brands in the world.
Euromonitor measured the most popular U.S. snack brands in 2013 and 6 of the 10 most popular brands were owned by PepsiCo.
|1.||Lay's||7||owned by PepsiCo|
|2.||Doritos||3.6||owned by PepsiCo|
|3.||Cheetos||2.7||owned by PepsiCo|
|5.||Ruffles||1.9||owned by PepsiCo|
|6.||Tostitos||1.6||owned by PepsiCo|
|8.||Walkers||1.3||owned by PepsiCo|
Source: Bakery and Snacks 
The company sells its products in more than 200 countries, so consumers are aware of PepsiCo’s brands all over the world. Owning and selling popular brands also helps PepsiCo to cross-sell its other brands or introduce new products to the market much more easily.