Pepsi 2006 Annual Report Download - page 16

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14
Quaker Oatmeal and Tropicana Pure Premium are important brands in
our health and wellness portfolio of products.
Non-Carbonated
Soft Drinks
69%
Carbonated
Soft Drinks
31%
PepsiCo Beverages North
America Carbonated
Soft Drink Revenue vs.
Non-Carbonated Soft
Drink Revenue
Non-Carbonated
Soft Drinks
38%
Carbonated Soft Drinks
62%
PepsiCo Beverages North
America Carbonated
Soft Drink Volume vs.
Non-Carbonated Soft
Drink Volume
Carbonated soft drinks
generate the largest volumes.
Non-carbonated beverages
generate the largest revenue.
and bold flavor. We reformu-
lated Diet Mountain Dew
and gave consumers a taste
during the largest single-day
sampling event in Pepsi history.
Similarly, we kicked off the
biggest marketing campaign
for Cheetos in the brand’s
history. And keep your eyes
on Fritos corn chips as we
celebrate the brand’s 75th
anniversary in 2007 with
special retro packaging.
Mergers and
Acquisitions
Our people have the skills to
pinpoint, acquire and seam-
lessly integrate businesses —
big and small. This has
enabled us to successfully add
large companies, like Quaker
and Tropicana, and regularly
add smaller “tuck-in” deals
that enhance and expand our
existing operations. These
include our recent acquisitions
of Izze Beverage Co., Naked
Juice, and Stacy’s Pita Chip
Company in the United
States, as well as Star Foods
in Poland, Bluebird Foods
in New Zealand and Duyvis
nuts in the Netherlands
and Belgium.
We are disciplined buyers,
with a rigorous process for
due diligence to ensure that
any potential acquisition
makes complete sense from
both a business and culture
standpoint. As diligent
integrators, we have a special
understanding of the entre-
preneurial nature of smaller
“tuck-in” acquisitions and
exercise a thoughtful
approach to helping these
new businesses preserve and
build upon their unique
capabilities, such as the high
level of involvement Stacy’s
has with its consumers. We
not only sign the deals, but
we are committed to making
them work.
we’ve recently extended
Aquafina with vitamin-
fortified Aquafina Alive, and
we’re now offering Tropicana
Organics and Tropicana
Essentials, juices with omega-
3’s, the fatty acids known for
helping to promote heart
health. Our Propel enhanced
water brand, which was
among the first entries into
the enhanced water category,
continues to meet consumer
desires for more healthful
options through brand
extensions like Propel Calcium.
Through our North American
Coffee Partnership with
Starbucks, we introduced
Starbucks Iced Coffee as well
as Strawberries and Crème
Frappuccino and Starbucks
DoubleShot Light.
Creating new products is
not the only way we build
brands. We are experts at
capturing consumer attention
with our brands. In 2006, we
solidified Pepsi’s popularity
among music fans when
Grammy award-winning artist
Mariah Carey wrote and
recorded original ringtones for
the Pepsi Cool Tones and
Motorola Phones promotion.
In international markets, a
Pepsi advertising campaign
included an engaging theme
song called “DaDaDa” that
caught on by connecting
soccer fans around the world.
We give our brands special
attention. For example, in 2006
we unveiled new packaging
and a new logo for Doritos
tortilla chips to communicate
the brand’s powerful crunch
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