Pepsi 2005 Annual Report Download - page 16

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14
With 95% of the world’s population located outside North America, international growth
is our single largest opportunity. Our strategies are focused:
• Build on our snack leadership position.
• Focus on the strengths of our beverages.
• Grow through acquisitions.
• Take advantage of our scale.
Build on Our Snack Leadership Position
Our snack business is the largest in the world, and our brands are recognized in markets
ranging from Mexico to the United Kingdom to Thailand. Yet, in some of the largest
developing markets, such as China and India, per-capita consumption is still small and
many consumers have never tasted our brands. To us, that means vast opportunities.
We’re building our existing business by offering consumers more variety and conven-
ience, including flavors tailored to local tastes. For example, in China we offer Lay’s potato
chips in flavors that include Hangzhou Stewed Meat, Hokkaido Crab and Cool Cucumber.
Providing products and programs that address consumers’ growing interest in health
and wellness also drives our success. In the United Kingdom, we lowered the saturated
fat in our standard Walkers crisps by 70% and launched Potato Heads, a highly success-
ful range of crisps for children, also with 70% less saturated fat and no artificial flavors
or preservatives. In Mexico, we have driven strong growth of the healthy segment with
brands such as Nutritas, an extruded snack, and Sun Chips multigrain snacks.
Focus on the Strengths of Our Beverages
Our international beverage volume has grown consistently during the past four years.
Through our company-owned and franchise-owned bottlers, we make and market an array
of major brands, including Pepsi-Cola, 7UP, Mirinda and Mountain Dew. Our portfolio
also includes various local soft drink brands.
We work relentlessly to keep our brands strong, exciting and locally relevant, with a
continuous flow of product news and package innovations, and exciting marketing
programs — often leveraging the universal appeal of music and sports.
We also offer consumers a portfolio of non-carbonated beverages that includes our
Gatorade, Tropicana and Aquafina brands, as well as Lipton teas through our joint ven-
ture with Unilever. Tropicana is now available in more than 30 countries and we’ve
expanded the presence of Gatorade, the world’s leading sports drink, into markets such
as China and India.
Grow through Acquisitions
Acquisitions offer additional opportunities to build our business and enter new markets
and categories. We now have full ownership of Snack Ventures Europe, Continental
United Kingdom/
Europe/
Middle East/Africa
35%
Latin America
55%
Asia/Pacific
10%
PepsiCo Snack Volume Outside
North America
% System Volume by Region
PepsiCo has the largest snack business
in the world.
United Kingdom/
Europe/
Middle East/Africa
45%
Latin America
29%
Asia/Pacific
26%
PepsiCo Beverage Volume Outside
North America
% System Volume by Region
Includes Pepsi-Cola, 7UP, Gatorade,
Tropicana and other beverages.
PepsiCo beverages are distributed
locally by company-owned and
franchised bottlers.
International growth is
our single largest
opportunity.