Pepsi 2005 Annual Report Download - page 12

Whether it’s a new product, improvement to an existing product, new packaging or
a unique promotion, we’re relentless in our drive to keep our products relevant
to consumers.
March of New Products
Early in the year, Pepsi-Cola North America capitalized on our leading Aquafina brand
with FlavorSplash, a zero-calorie water made with natural fruit flavors and sweetened
with Splenda no-calorie sweetener.
Our SoBe team built on the strength of its South Beach Diet program-endorsed Lean
line with two new flavors: Lean Energy and Lean Mango Melon. The Pepsi-Lipton Tea
Partnership unveiled a new Diet Sweet version of ready-to-drink Lipton Iced Tea.
We also kept our carbonated soft drink brands top of mind. Building sales of our
flagship Pepsi brand, Pepsi-Cola introduced Pepsi Lime and Diet Pepsi Lime, a pair
of colas featuring the popular lime flavor. Pioneering a new category of “energy
sodas,” Pepsi-Cola launched MDX, a beverage touting the familiar citrus flavor of
Mountain Dew, but fueled by a “power pack” of ingredients including ginseng,
guarana, taurine and D-ribose.
The march of our new products continued when Tropicana introduced Tropicana
Pure Premium Essentials with Fiber — the first national orange juice with added
fiber. It delivers as much fiber as a whole orange in every 8-ounce glass. Then we
gave lemonade a new meaning with the introduction of a Gatorade Lemonade, a line
that combines the refreshing taste of lemonade with the scientifically supported
formula of Gatorade Thirst Quencher.
At Frito-Lay North America, we reformulated all our Quaker Chewy granola bars to
remove trans fat — plus we reformulated many of them to reduce sugar by 25% and
add calcium. Many of these bars now bear the Smart Spot symbol and our new
package graphics reinforce the linkage to Quaker Oatmeal. In our Oberto meat snacks
line, distributed by Frito-Lay, we introduced Oh Boy! Oberto Beef Jerky Crisps, a first-
of-its-kind snack that bridges the gap between beef jerky and traditional snack chips.
At our Quaker Foods business, we added to our successful Life Cereal line with the
introduction of Life Vanilla Yogurt Crunch — combining Life Cereal with yogurt-coated
clusters while delivering nine essential vitamins and minerals and providing a good
source of calcium and fiber. Quaker also introduced new Weight Control instant
oatmeal, a quick, convenient way to eat a nutritious breakfast that is high in fiber and
a good source of protein, and Quaker Oatmeal-To-Go bars, which provide all the
nutrition of a bowl of instant oatmeal.
Pepsi-Cola
Mountain Dew (diet and regular)
Diet Pepsi
Gatorade Thirst Quencher
Lay’s Potato Chips
Lipton Tea
Tropicana Pure Premium Orange Juice
Doritos Tortilla Chips
7UP (outside U.S.)
Aquafina Bottled Water
Cheetos Cheese Flavored Snacks
Quaker Cereals
Ruffles Potato Chips
Mirinda
Tostitos Tortilla Chips
Sierra Mist (diet and regular)
Fritos Corn Chips
05101520
Largest PepsiCo Brands
Estimated Worldwide Retail Sales $ in Billions
PepsiCo now has 17 powerful brands known around the world
that each generate annual retail sales of more than $1 billion.
PepsiCo
15%
Kraft Foods
12%
Private
Label
8%
Hershey
6%
Kellogg
5%
General
Mills
5%
Master
Foods
4%
Procter &
Gamble
1%
Others
44%
U.S. Convenient Foods Sales
% Retail Sales in Measured Channels.
Includes chips, pretzels, ready-to-eat popcorn, crackers, dips,
snack nuts/seeds, meat snacks, yogurt, bars, cookies, pastry,
sweet, and other snacks.
Frito-Lay is the leading convenient snack food business
in measured channels in the United States.
PepsiCo estimated
worldwide retail
sales: $85 billion