Pepsico has issued its first annual report after completing its buyout of Quaker Oats and Tropicana.

It breaks its businesses down into four groups.

Pepsi - North America, representing not only the traditional Pepsi soda brands but Quaker's Gatorade and Tropicana now represents only 28% of the company.

Frito-Lay - North America accounts for 33%. Quaker for 5%. International, where all products (Pepsi, Gatorade, Frito-Lay, Tropicana, etc) is 24%.

Applying logic to the international numbers and the market dominant position of Gatorade, that puts the soft drink part of Pepsi at no more than 35-40% of the entire merged company worldwide.

A potato chip company with a soft drink division.

That's a funny observation. But can they sustain such a large and diverse portfolio for the long haul? That's what I would like to know.

CR

large and diverse? What about how it looked like before they spun off the bottling group and the restaurant group?

andy

Kind of like Micro$oft...a large conglomerate that sells inferior products that, for some reason, people continue to buy.

Talking about Pepsi, today I tried the new "Pepsi Fire" that Pepsi launched as a limited edition brand, they announce it as a "soda with a mysterious taste".

Tastes sweeter than regular Pepsi, in my opinion, "Pepsi Fire" sucks.

The Faygo stock "FIZ" seems to be stagnant, between $4-$8, the last 5 years. Im sure Pepsi and Coke are in much better shape [img]smile.gif[/img]

[ 04-09-2005, 03:45 AM: Message edited by: gregmech26 ]

Pepsi has long been a snack foods company with a soda division. Frito has been very, very profitable for PepsiCo. I remember during the years when they had COBO (company owned bottling operations, which was spun off into PBG), Frito supplied at least 55% of the profits. Of course, bottling operations require a lot of cash, so that drug down the beverage side of the company.

But things have changed since then. They spun off YUM & PBG, and acquired Tropicana and Quaker. I look for them to start dumping the non-core Quaker stuff any time now.

They did do a few smart things, like putting the single serve granola bars, bags of Cracker Jack and such on Frito trucks.

But I can't see any advantage to holding onto Captain Crunch and company. Not to mention I don't really see the Aunt Jemima, Rice-A-Roni and Near East rice brands as assets to the company. They can't really put those brand names on any other products and promote them with Mountain Dew or anything.

Although they did do quite a bit of breakfast marketing with Quaker Oats and Tropicana earlier this year.. displays, coupons, rebates, etc.

Originally posted by DietCokeEnthusiast:
Kind of like Micro$oft...a large conglomerate that sells inferior products that, for some reason, people continue to buy.

Inferior? Hardly. Remember... it was your bevloved Coke that changed to try and taste like Pepsi......

Sure... Pepsi may not have been the original but they never had to put drugs in it to get ppl to buy more :P>

Pepsi owns you.

Originally posted by gregmech26:
The Faygo stock "FIZ" seems to be stagnant, between $4-$8, the last 5 years. Im sure Pepsi and Coke are in much better shape [img]smile.gif[/img]

"FIZ" stock has actually performed rather well in the last 5 years. The stock was as high as $12 last year, they then had a 2 for 1 split which dropped the price back down to where it is today, but then you had double the shares.

Originally posted by halloaaryn:
Remember... it was your bevloved Coke that changed to try and taste like Pepsi......

Yep, I also remember that nobody wanted that crap.