Pepsi 2012 Annual Report Download - page 39

Harmonize internal processes and aggressively build
out new capabilities.
To be successful in an increasingly competitive environment,
we must effectively implement our global operating model
and aggressively build out new capabilities. We are leveraging
the expertise of our marketing and innovation teams across
the Company. We plan to increase the use of global marketing
campaigns for our iconic global brands, such as the “Live for
Now” campaign for Pepsi to create a more consistent brand
experience for consumers around the world. We also expect
to continue to increase our investment behind sweeteners
and other research and development initiatives. In addition,
we are investing in packaging and other innovations, includ-
ing through the creation of a new design group. Other global
processes, such as master data and information technology
systems, are also being harmonized to increase efficiency
across the Company and speed decision-making.
Build and retain top talent.
Our continued growth and our ability to effectively respond
to a rapidly changing environment requires us to develop
and retain talented associates. To address this need, we have
implemented award-winning talent and leadership initiatives
and plan to continue to recruit from outside our industry to
infuse fresh thinking and bring complementary capabilities to
our team.
Deliver on the promise of Performance with Purpose.
Performance with Purpose is our vision to succeed in the long
term by creating sustained value. PepsiCo was again recog-
nized for its leadership in this area in 2012 by earning a place
on the prestigious Dow Jones Sustainability World Index for
the sixth consecutive year and on the North America Index for
the seventh consecutive year. We plan to continue delivering
on this vision by offering a wide range of product choices,
finding innovative ways to cut costs and minimize our impact
on the environment, providing a safe and inclusive workplace
and respecting and investing in the communities in which
we operate.
Our Operations
We are organized into four business units, as follows:
1) PepsiCo Americas Foods, which includes Frito-Lay North
America (FLNA), Quaker Foods North America (QFNA) and
all of our Latin American food and snack businesses(LAF);
2) PepsiCo Americas Beverages (PAB), which includes
all of our North American and Latin American bever-
age businesses;
3) PepsiCo Europe, which includes all beverage, food and
snack businesses in Europe and South Africa; and
4) PepsiCo Asia, Middle East and Africa (AMEA), which
includes all beverage, food and snack businesses in AMEA,
excluding South Africa.
Our four business units are comprised of six reportable seg-
ments (also referred to as divisions), as follows:
• FLNA,
• QFNA,
• LAF,
• PAB,
• Europe, and
• AMEA.
See Note1 to our consolidated financial statements for
financial information about our divisions and geographic areas.
Frito-Lay North America
Either independently or in conjunction with third-party part-
ners, FLNA makes, markets, sells and distributes branded
snack foods. These foods include Lay’s potato chips, Doritos
tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla
chips, branded dips, Ruffles potato chips, Fritos corn chips
and Santitas tortilla chips. FLNA’s branded products are sold
to independent distributors and retailers. In addition, FLNA’s
joint venture with Strauss Group makes, markets, sells and
distributes Sabra refrigerated dips and spreads.
Quaker Foods North America
Either independently or in conjunction with third-party part-
ners, QFNA makes, markets, sells and distributes cereals, rice,
pasta, dairy and other branded products. QFNA’s products
include Quaker oatmeal, Aunt Jemima mixes and syrups,
Quaker Chewy granola bars, Quaker grits, Cap’n Crunch cereal,
Life cereal, Quaker rice cakes, Rice-A-Roni side dishes, Near
East side dishes and Pasta Roni side dishes. These branded
products are sold to independent distributors and retailers.
Management’s Discussion and Analysis
2012 PEPSICO ANNUAL REPORT 37