Pepsi 2005 Annual Report Download - page 28

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26
We are a leading, global snack and bever-
age company. We manufacture, market and
sell a variety of salty, convenient, sweet
and grain-based snacks, carbonated and
non-carbonated beverages and foods. We
are organized into four divisions:
• Frito-Lay North America,
• PepsiCo Beverages North America,
• PepsiCo International, and
• Quaker Foods North America.
Our North American divisions operate
in the United States and Canada. Our
international divisions operate in over 200
countries, with our largest operations in
Mexico and the United Kingdom. Additional
information concerning our divisions and
geographic areas is presented in Note 1.
Frito-Lay North America
Frito-Lay North America (FLNA) manufac-
tures or uses contract manufacturers, mar-
kets, sells and distributes branded snacks.
These snacks include Lay’s potato chips,
Doritos tortilla chips, Cheetos cheese
flavored snacks, Tostitos tortilla chips,
Fritos corn chips, branded dips, Ruffles
potato chips, Quaker Chewy granola bars,
Rold Gold pretzels, Sun Chips multigrain
snacks, Munchies snack mix, Grandma’s
cookies, Lay’s Stax potato crisps, Quaker
Quakes corn and rice snacks, Quaker Fruit
& Oatmeal bars, Cracker Jack candy coated
popcorn and Go Snacks. FLNA branded
products are sold to independent distribu-
tors and retailers.
PepsiCo Beverages North America
PepsiCo Beverages North America (PBNA)
manufactures or uses contract manufactur-
ers, markets and sells beverage concen-
trates, fountain syrups and finished goods,
under various beverage brands including
Pepsi, Mountain Dew, Gatorade, Tropicana
Pure Premium, Sierra Mist, Tropicana juice
drinks, Mug, Propel, SoBe, Tropicana
Twister, Dole and Slice. PBNA also manu-
factures, markets and sells ready-to-drink
tea and coffee products through joint
ventures with Lipton and Starbucks. In
addition, PBNA licenses the Aquafina
water brand to its bottlers and markets this
brand. PBNA sells concentrate and
finished goods for some of these brands to
bottlers licensed by us, and some of these
branded products are sold directly by us to
independent distributors and retailers. The
franchise bottlers sell our brands as
finished goods to independent distributors
and retailers. PBNA’s volume reflects sales
to its independent distributors and retail-
ers, and the sales of beverages bearing
our trademarks that franchise bottlers
have reported as sold to independent
distributors and retailers.
Our Operations
Our Business
Our discussion and analysis is an integral part of understanding our financial results. Definitions of key terms can
be found in the glossary on page 76. Tabular dollars are presented in millions, except per share amounts. All per
share amounts reflect common per share amounts, assume dilution unless noted, and are based on unrounded
amounts. Percentage changes are based on unrounded amounts.
All of our divisions positively
contributed to net revenue
and operating profit growth
in 2005.
QFNA
6%
FLNA
23%
PBNA
25%
PI
46%
Net Revenue Contribution to Growth
QFNA
10% FLNA
23%
PBNA
21%
PI
46%
Operating Profit Contribution to Growth