PepsiCo Investor Relations Material
A Beverage Industry Titan
PepsiCo Inc., globally known for its namesake beverage, Pepsi, stands as one of the largest food and beverage companies in the world. Founded in the late 19th century, the company has built an extensive portfolio that extends beyond soft drinks, reaching into the snacks and non-alcoholic beverages sectors. PepsiCo has a long-standing history and is today well established globally.
PepsiCo's roots stretch back to the late 19th century when a North Carolina pharmacist, Caleb Bradham, created what would become Pepsi-Cola in 1893. Originally named "Brad's Drink," it was rebranded as Pepsi-Cola in 1898, inspired by the medical term for indigestion, "dyspepsia," highlighting its early marketing as a health drink. Despite the Great Depression’s adversity, which led the company to bankruptcy in 1931, Pepsi-Cola re-emerged under new management and introduced the 12-ounce bottle, a game-changing strategy in the soft drink industry.
Over the decades, PepsiCo has experienced a series of expansions and mergers, the most significant being the 1965 merger with Frito-Lay, which diversified its portfolio beyond beverages. Notably, in 1997, PepsiCo spun off its fast-food chains, including Pizza Hut, KFC, and Taco Bell, into a separate company called Yum! Brands.
Not Just Cola
PepsiCo, far beyond its well-known cola, maintains a diverse portfolio of products that spans a variety of beverage and snack categories. They've successfully carved out their place in the soft drink industry with staples like Pepsi, Mountain Dew, and 7UP. In the juice sector, PepsiCo owns Tropicana and Naked Juice, and the company's foray into the non-alcoholic beverage market includes other household names like Gatorade and Aquafina.
The Rivalry with Coca-Cola
Even if Pepsi competes against companies like Keurig Dr Pepper, nothing compares to its main rival. The rivalry between PepsiCo and Coca-Cola, often referred to as the "Cola Wars," is one of the most enduring in corporate history. Originating in the early 20th century, this competition has been characterized by creative marketing campaigns and new product introductions aimed at outperforming the other. Despite their rivalry, both brands have successfully carved out significant market share in the global beverage industry.