Pepsi 2007 Annual Report Download - page 14

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PepsiCo Americas Foods
PepsiCo Americas Foods (PAF)
may be new in terms of
geography and organizational
structure, but there’s nothing new about
our success. PAF brings together a group
of big, vibrant businesses like Frito-Lay
and Quaker Foods in North America,
Sabritas and Gamesa in Mexico and
Elma Chips in Brazil. Collectively, they
market and sell some of the world’s
most popular snack and food brands.
These businesses have been
making major contributions to
PepsiCo’s growth for many years.
Our success is built on several advan-
tages — some structural and some
cultural. First, by keeping our ears
to the ground and our eyes on the
marketplace, we have been able to
innovate and market our brands better
than most. Second, our scale and verti-
cal integration provide us advantages
in manufacturing, warehousing and
distribution. Third, our go-to-market sys-
tems provide ubiquitous reach, putting
our brands virtually wherever consumers
live, work and play. We operate over
35,000 direct-to-store selling routes
and have access to a scaled warehouse
and third-party distributors. Finally, and
most importantly, we have the cultural
advantage of having all of our associates
empowered to make a difference.
Our Performance with Purpose journey
has many great 2007 highlights:
• Frito-Lay North America (FLNA)
is PAF’s largest operating division
and had another tremendous year.
Revenue grew 7%, led by double-
digit growth in Doritos snacks,
multipacks, dips and SunChips
snacks. Additionally, we continued
to extend beyond the core by intro-
ducing Flat Earth baked fruit and
vegetable crisps. And Stacy’s pita
chips is the fastest-growing
brand in the fast-growing salty
snacks category.
• Quaker Foods North America had
solid revenue growth of 5% driven
by our hot cereals business.
• Sabritas continued to perform very
well with operations in Mexico,
Central America and the Caribbean.
Strong sales results were comple-
mented by record-high productivity
savings and employee advancements
throughout the region.
• Mexico’s Gamesa-Quaker business
posted exceptionally strong volume
and share growth, with premium
cookies leading the way.
• Finally, our South America foods
business — which includes
operations in Brazil, Argentina,
Colombia, Peru and Venezuela —
grew organically and via acquisition,
through the purchase of the Lucky
snacks business in Brazil.
PERFORMANCE
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