Pepsi 2008 Annual Report Download

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2008 Annual Report
WE ARE Performance
WITH Purpose.

Table of contents

  • Page 1
    WE ARE Performance WITH Purpose. 2008 Annual Report

  • Page 2
    ... Purpose." This year's report features employees, customers and business partners around the world who helped PepsiCo grow under adverse conditions-and stay focused on future opportunities. To represent this perspective, we invited children of PepsiCo associates across our global operations to show...

  • Page 3
    ... powerful new reasons to choose our beverages, snacks and foods. CONTENTS 2 4 Financial Highlights Letter to Shareholders 8 North America 18 Latin America 24 Europe 30 India 36 China 41 Financial Contents 97 PepsiCo Board of Directors 98 PepsiCo Executive Committee PepsiCo, Inc. 2008 Annual Report...

  • Page 4
    ... Capital spending Common share repurchases Dividends paid Long-term debt $««4,651 $««6,999 $««2,446 $««4,720 $««2,541 $««7,858 $««4,551 $««6,934 $««2,430 $««4,300 $««2,204 $««4,203 2% 1% 1% 10% 15% 87% Cumulative Total Shareholder Return Return on PepsiCo stock investment...

  • Page 5
    ...Earnings Per Share* Total Return to Shareholders Core Return on Invested Capital* Sierra Mist Walkers Potato Crisps Fritos Corn Chips $0 $5 $10 $15 $20 *Seepage95forareconciliationtothemostdirectlycomparablefinancialmeasure in accordance with GAAP. PepsiCo, Inc. 2008 Annual Report...

  • Page 6
    ... and Chief Executive Officer Dear Fellow Shareholders, It is now two years since we introduced a new strategic mission to try to capture the heart and soul of PepsiCo. The simple but powerful idea of Performance with Purpose combines the two things that define what we do-growing the business, and...

  • Page 7
    ... products powered on. The Quaker business and our market-leading Sabritas and Gamesa brands helped us generate tremendous growth. On these strengths, PepsiCo Americas Foods increased revenues by 11 percent and core operating profit by 10 percent.* PepsiCo Americas Beverages had a difficult year...

  • Page 8
    ... of GDP growth. This year we broadened our beverage portfolio by partnering with The Pepsi Bottling Group to acquire Russia's leading juice company, Lebedyansky, by acquiring V Water in the United Kingdom and by expanding our successful Lipton Tea partnership with Unilever. In the snack business, we...

  • Page 9
    ... deep brand value we have. In good times and bad, people view our products as simple, affordable pleasures that keep them nourished and refreshed. Worldwide, our retail partners consider us a strategic partner whose powerful go-to-market systems deliver strong brands and fast-selling products that...

  • Page 10
    We are Performance with Purpose. 8 PepsiCo, Inc. 2008 Annual Report

  • Page 11
    PepsiCo, Inc. 2008 Annual Report 

  • Page 12
    ... millennials with boomers through a call for positive change that invites every generation to go out and refresh the world. And our new packaging sets the standard for simplicity on the street and on the store shelf, where our products truly come to life. 0 PepsiCo, Inc. 2008 Annual Report

  • Page 13
    Our new store shelf lineup brings your favorite PepsiCo soft drinks to life. PepsiCo, Inc. 2008 Annual Report 

  • Page 14
    ... product identities will help differentiate this mega-brand in today's marketplace and inspire sports enthusiasts to keep pushing beyond their comfort zone to achieve their full potential. Gatorade's new ad campaign inspires sports enthusiasts to tap into their "G."  PepsiCo, Inc. 2008 Annual...

  • Page 15
    ... the Tropicana brand to bring them nutritious, all-natural, great-tasting products. As the category leader, we're taking bold steps to "re-present" Tropicana juices in a refreshing new way. Our "Squeeze, it's a natural" campaign builds an emotional connection by reminding people of the goodness we...

  • Page 16
    ... in the U.S. market to feature PureVia sweetener. It's the latest example of product innovation from a brand that continues to redefine the water beverage category. The SoBe team hit the mark with a new great-tasting, zero-calorie naturally sweetened beverage.  PepsiCo, Inc. 2008 Annual Report

  • Page 17
    ... leader in snacks, we wanted people to enjoy the health benefits of traditional nuts in new ways. Our Frito-Lay marketing and research teams turned this passion for nuts into an innovative new snack with great taste and nutrition. We started by asking, "Why can't a nut be crunchier, crispier and...

  • Page 18
    ... to grow. We are investing in a new, state-of-theart production plant that seeks to bring more than 200 new jobs to Virginia. Sabra will use today's most advanced technologies to develop innovative new products that satisfy growing demand for these top-selling hummus dips. Busy moms can serve their...

  • Page 19
    ... great addition to our oatmeal line, it also has the added benefit of fiber, supplying 40 percent of the daily value to help Americans meet their dietary fiber requirements. This new product is really catching on, with consumers trying it and coming back for more. PepsiCo, Inc. 2008 Annual Report 

  • Page 20
    Somos Desempeño con Sentido.* *We are Performance with Purpose. 8 PepsiCo, Inc. 2008 Annual Report

  • Page 21
    PepsiCo, Inc. 2008 Annual Report 

  • Page 22
    Our team in Curitiba, Brazil, planted the seeds for greener growth. 0 PepsiCo, Inc. 2008 Annual Report

  • Page 23
    ... market share. Very quickly, we increased production at our remaining Brazilian plants by running them around the clock. We also stepped up production of our best-selling Elma Chips, and focused promotions exclusively on our best innovation bet- our new baked Sensações ao Forno brand. Within...

  • Page 24
    ... Less driving also means lower fuel costs, less energy consumption and a greener environment. With this much success, it's no wonder multi-bag handling is catching on across our entire company. Our Sabritas route sales representatives make fuel efficiency their calling card.  PepsiCo, Inc. 2008...

  • Page 25
    ... a whole new line of Sabritas chips in the United States, with authentic flavors that include Chile Piquín and Habanero Limón. Our multicultural marketing team works with our ethnic advisory boards to extend our brands to a diverse range of consumers. PepsiCo, Inc. 2008 Annual Report 

  • Page 26
    * *We are Performance with Purpose.  PepsiCo, Inc. 2008 Annual Report

  • Page 27
    PepsiCo, Inc. 2008 Annual Report 

  • Page 28
    We welcomed the Lebedyansky family of juices and nectars to our expanding beverage portfolio.  PepsiCo, Inc. 2008 Annual Report

  • Page 29
    ...-brands. Together with The Pepsi Bottling Group, we increased our market position in juices from sixth to first in Russia, and from fourth to first in Europe. And as Russia's new leader in the liquid refreshment beverage category, we'll continue to expand our portfolio. PepsiCo, Inc. 2008 Annual...

  • Page 30
    ... our partnership with Unilever combines the best-selling Lipton tea brand with PepsiCo's strength in product development, bottling, distribution and marketing. Last year we expanded our relationship by adding 11 countries-including eight in Europe-to the Pepsi Lipton International network. When the...

  • Page 31
    ... our relationship with consumers. More than 60 percent of participants opted to keep in touch with Walkers news through a digital newsletter. The Walkers ad campaign used digital communications to connect the British landscape with today's online landscape. PepsiCo, Inc. 2008 Annual Report 

  • Page 32
    * *We are Performance with Purpose. 0 PepsiCo, Inc. 2008 Annual Report

  • Page 33
    PepsiCo, Inc. 2008 Annual Report 

  • Page 34
    Several PepsiCo plants worldwide are using a mix of biofuels to make beverages and snacks from cleaner energy sources.  PepsiCo, Inc. 2008 Annual Report

  • Page 35
    ... percent of the electricity PepsiCo India uses in its company-owned bottling operations. And importantly, last year it reduced annual carbon emissions by an estimated 3,000 tons. It has the potential to save more than $200,000 per year. With our wind energy program, and investments in solar lighting...

  • Page 36
    ... manufacturing plants in India could achieve our goal of conserving more water than we use. By measuring and mapping water flows, we found new opportunities to recycle. We also began harvesting rainwater in most plants and worked with local farmers to develop far-reaching watershed management...

  • Page 37
    ... call their own. The My Can My Style campaign attracted more than 500,000 online interactions, reintroduced Pepsi-Cola to a new generation and helped increase local Pepsi volume by 5 percent. Teens in India are finding personal ways to connect with our brands. PepsiCo, Inc. 2008 Annual Report 

  • Page 38
    * *We are Performance with Purpose.  PepsiCo, Inc. 2008 Annual Report

  • Page 39
    PepsiCo, Inc. 2008 Annual Report 

  • Page 40
    Our R&D team in Shanghai infuses our mega-brands with local flavors. 8 PepsiCo, Inc. 2008 Annual Report

  • Page 41
    ... mixed juices. This breakthrough non-carbonated beverage, available in Honey Melon & Jasmine and Orange & Honeysuckle, became PepsiCo International's largest and most successful new product this year and helped us grow our market share in China's major cities. PepsiCo, Inc. 2008 Annual Report 

  • Page 42
    ... purchasing power to make smart buying and operating decisions. By developing regional procurement strategies, we can protect our supply chain and margins and support the growth of local economies. In the United States and many other regions, we contract with local growers to secure high-quality raw...

  • Page 43
    ... Financial Data ...94 Reconciliation of GAAP and Non-GAAP Information ...95 Glossary...96 Consolidated Statement of Income ...66 Consolidated Statement of Cash Flows...67 Consolidated Balance Sheet ...68 Consolidated Statement of Common Shareholders' Equity ...69 PepsiCo, Inc. 2008 Annual Report...

  • Page 44
    ...to evaluate our business results and financial conditions. These indicators include market share, volume, net revenue, operating profit, management operating cash flow, earnings per share and return on invested capital. Key Challenges and Strategies for Growth To achieve our financial objectives, we...

  • Page 45
    ... (PAB), which includes PepsiCo Beverages North America and all of our Latin American beverage businesses; and (3) PepsiCo International (PI), which includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. Our three business units are comprised of six reportable...

  • Page 46
    ... water brand to certain of its authorized bottlers. MEAA also manufactures or uses contract manufacturers, markets and sells ready-to-drink tea products through an international joint venture with Unilever. MEAA reports two measures of volume (see United Kingdom & Europe above). New Organizational...

  • Page 47
    ... and vending distributors and operators. Our foodservice and vending sales force also distributes certain beverages through our bottlers. This distribution system supplies our products to schools, businesses, stadiums, restaurants and similar locations. PepsiCo, Inc. 2008 Annual Report 

  • Page 48
    ... negotiated with other vendors and customers. In addition, certain of our employees serve on the boards of our anchor bottlers and other affiliated companies and do not receive incremental compensation for their Board services. OuR BuSINESS RISKS Demand for our products may be adversely affected by...

  • Page 49
    ...these raw materials and supplies are available from a limited number of suppliers. We are exposed to the market risks arising from adverse changes in commodity prices, affecting the cost of our raw materials and energy. The raw materials and energy which we use for the production of our products are...

  • Page 50
    ...products and could have a material adverse effect on our business, financial condition and results of operations, as well as require additional resources to rebuild our reputation. Trade consolidation, the loss of any key customer, or failure to maintain good relationships with our bottling partners...

  • Page 51
    ... food and drug laws; laws related to advertising and deceptive marketing practices; accounting standards; taxation requirements, including taxes specifically targeting the consumption of our products; competition laws; and environmental laws, including laws relating to the regulation of water rights...

  • Page 52
    ... to market risks arising from adverse changes in: • commodity prices, affecting the cost of our raw materials and energy, • foreign exchange rates, and • interest rates. In the normal course of business, we manage these risks through a variety of strategies, including productivity initiatives...

  • Page 53
    ... critical accounting policies arise in conjunction with the following: • revenue recognition, • brand and goodwill valuations, • income tax expense and accruals, and • pension and retiree medical plans. REvENuE RECOGNITION Our products are sold for cash or on credit terms. Our credit terms...

  • Page 54
    ... receivable and our analysis of customer data. Bad debt expense is classified within selling, general and administrative expenses in our income statement. BRAND AND GOODwILL vALuATIONS We sell products under a number of brand names, many of which were developed by us. The brand development costs...

  • Page 55
    ... the value of benefits earned by employees for working during the year (service cost), (2) increase in the liability due to the passage of time (interest cost), and (3) other gains and losses as discussed below, reduced by (4) expected return on plan assets for our funded plans. PepsiCo, Inc. 2008...

  • Page 56
    ... of the long-term rates. Our pension plan investment strategy includes the use of actively-managed securities and is reviewed annually based upon plan liabilities, an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. Our investment objective is to...

  • Page 57
    ... of the trend rate considers factors such as demographics, plan design, new medical technologies and changes in medical carriers. Weighted-average assumptions for pension and retiree medical expense are as follows: 2009 2008 2007 Pension Expense discount rate Expected rate of return on plan assets...

  • Page 58
    ... or $0.01 per share) of mark-to-market net losses on commodity hedges in corporate unallocated expenses. Restructuring and Impairment Charges In 2008, we incurred a charge of $543 million ($408 million after-tax or $0.25 per share) in conjunction with our Productivity for Growth program. The program...

  • Page 59
    ... resolution of certain foreign tax matters. In 2006, we recognized non-cash tax benefits of $602 million ($0.36 per share), substantially all of which related to the Internal Revenue Service's (IRS) examination of our consolidated tax returns for the years 1998 through 2002. PepsiCo Share of PBG...

  • Page 60
    ... and development costs and the absence of certain other favorable corporate items in 2006, partially offset by lower pension costs. Other Consolidated Results Change 008 2007 2006 008 2007 2008 Bottling equity income decreased 33%, primarily reflecting a non-cash charge of $138 million related to...

  • Page 61
    ... by higher commodity costs, primarily cooking oil and fuel. Operating profit growth was negatively impacted by 3 percentage points, resulting from higher fourth quarter restructuring and impairment charges in 2008 related to the Productivity for Growth program. Foreign currency and acquisitions each...

  • Page 62
    ... commodity costs. An insurance recovery contributed 3 percentage points to the operating profit growth. The impact of the fourth quarter restructuring and impairment charges in 2008 related to the Productivity for Growth program was offset by the prior year restructuring charges. Acquisitions...

  • Page 63
    ... and realign our organizational structure reduced operating profit growth by 6 percentage points. Operating profit, excluding restructuring and impairment charges, grew 15%. PepsiCo Americas Beverages % Change 008 2007 2006 008 2007 Our North American business navigated a challenging year in the...

  • Page 64
    ... acquisitions, which contributed 16 percentage points to the growth. CSDs increased at a low-single-digit rate and non-carbonated beverages grew at a double-digit rate. In 2008, UKEU net revenue grew 17%, reflecting favorable effective net pricing and volume growth.  PepsiCo, Inc. 2008 Annual...

  • Page 65
    ... commodity costs. Foreign currency contributed 2 percentage points and acquisitions contributed 1 percentage point to the operating profit growth. The impact of the fourth quarter restructuring and impairment charges in 2008 related to the Productivity for Growth program was offset by the prior year...

  • Page 66
    ... proceeds in 2009 from sales of PBG and PAS stock due to the current capital market conditions. Financing Activities In 2008, we used $3.0 billion for our financing activities, primarily reflecting the return of operating cash flow to our shareholders through common share repurchases of $4.7 billion...

  • Page 67
    ... income or tax benefits or to avoid recognizing or disclosing assets or liabilities. See Note 9 for a description of our off-balance-sheet arrangements. Net cash provided by operating activities (a) Capital spending Sales of property, plant and equipment Management operating cash flow $«6,999...

  • Page 68
    ...) Fiscal years ended December 27, 2008, December 29, 2007 and December 30, 2006 008 2007 2006 Net Revenue Cost of sales Selling, general and administrative expenses Amortization of intangible assets Operating Profit Bottling equity income Interest expense Interest income Income before Income Taxes...

  • Page 69
    ...other current assets Change in accounts payable and other current liabilities Change in income taxes payable Other, net Net Cash Provided by Operating Activities Investing Activities Capital spending Sales of property, plant and equipment Proceeds from (Investment in) finance assets Acquisitions and...

  • Page 70
    Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries (in millions except per share amounts) December 27, 2008 and December 29, 2007 008 2007 ASSETS Current Assets Cash and cash equivalents Short-term investments Accounts and notes receivable, net Inventories Prepaid expenses and other current...

  • Page 71
    ... pension liability adjustment, net of tax Unrealized (losses)/gains on securities, net of tax Other Balance, end of year Repurchased Common Stock Balance, beginning of year Share repurchases Stock option exercises Other, primarily RSUs converted Balance, end of year Total Common Shareholders' Equity...

  • Page 72
    ... 2008 presentation. OuR DIvISIONS We manufacture or use contract manufacturers, market and sell a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods in approximately 200 countries with our largest operations in North America (United States...

  • Page 73
    ...Foods North America (QFNA) Latin America Foods (LAF) PepsiCo Americas Beverages (PAB) PepsiCo International (PI) united Kingdom & Europe (uKEu) Middle East, Africa & Asia (MEAA) 008 2007 Net Revenue 2006 008 2007 Operating Profit (a) 2006 FLNA QFNA LAF PAB UKEU MEAA Total division Corporate...

  • Page 74
    ... from businesses operating in these countries. (b) Long-lived assets represent property, plant and equipment, nonamortizable intangible assets, amortizable intangible assets, and investments in noncontrolled affiliates. These assets are reported in the country where they are primarily used. Total...

  • Page 75
    ... assets on our balance sheet. For additional unaudited information on our sales incentives, see "Our Critical Accounting Policies" in Management's Discussion and Analysis. Other marketplace spending, which includes the costs of advertising and other marketing activities, totaled $2.9 billion in 2008...

  • Page 76
    ... Pension, Retiree Medical and Savings Plans - Note 7, and for additional unaudited information, see "Our Critical Accounting Policies" in Management's Discussion and Analysis. •฀ Financial Instruments - Note 10, and for additional unaudited information, see "Our Business Risks" in Management...

  • Page 77
    ...our Productivity for Growth program activity is as follows: Severance and Other Employee Costs Note 4 Property, Plant and Equipment and Intangible Assets Average Useful Life 008 2007 2006 Asset Impairments Other Costs Total 2008 restructuring and impairment charge Cash payments Non-cash charge...

  • Page 78
    ...Our Critical Accounting Policies" in Management's Discussion and Analysis. NONAMORTIzABLE INTANGIBLE ASSETS Perpetual brands and goodwill are assessed for impairment at least annually. If the carrying amount of a perpetual brand exceeds its fair value, as determined by its discounted cash flows, an...

  • Page 79
    ...affiliates Property, plant and equipment Intangible assets other than nondeductible goodwill Pension benefits Other Gross deferred tax liabilities Deferred tax assets Net carryforwards Stock-based compensation Retiree medical benefits Other employee-related benefits Pension benefits Deductible state...

  • Page 80
    ... future stock-based compensation grants. Balance, beginning of year FIN 48 adoption adjustment to retained earnings Reclassification of deductible state tax and interest benefits to other balance sheet accounts Adjusted balance, beginning of year Additions for tax positions related to the current...

  • Page 81
    ...our stock price over the most recent historical period equivalent to the expected life. Dividend yield is estimated over the expected life based on our stated dividend policy and forecasts of net income, share repurchases and stock price. Stock Options Weighted-average fair value of options granted...

  • Page 82
    ... to Consolidated Financial Statements Note 7 Pension, Retiree Medical and Savings Plans Our pension plans cover full-time employees in the U.S. and certain international employees. Benefits are determined based on either years of service or a combination of years of service and earnings. U.S. and...

  • Page 83
    ... comprehensive loss/(credit) (pre-tax) Net loss Prior service cost/(credit) Total Components of the increase/(decrease) in net loss SFAS 158 measurement date change Change in discount rate Employee-related assumption changes Liability-related experience different from assumptions Actual asset return...

  • Page 84
    ...plans with liability for service to date and total benefit liability in excess of plan assets: Pension 008 u.S. 2007 008 International 2007 Retiree Medical 008 2007 Selected information for plans with liability for service to date in excess of plan assets Liability for service to date Fair value...

  • Page 85
    ...of PepsiCo common stock with a market value of $302 million in 2008, and 5.5 million shares with a market value of $401 million in 2007. Our investment policy limits the investment in PepsiCo stock at the time of investment to 10% of the fair value of plan assets. RETIREE MEDICAL COST TREND RATES An...

  • Page 86
    ...of the outstanding common stock of PAS. PAS summarized financial information is as follows: 008 2007 2006 Current assets Noncurrent assets Total assets Current liabilities Noncurrent liabilities Minority interest Total liabilities Our investment Net revenue Gross profit Operating profit Net income...

  • Page 87
    ...be used for general corporate purposes, including supporting our outstanding commercial paper issuances. This agreement expires in 2012. This line of credit remains unused as of December 27, 2008. As of December 27, 2008, we have reclassified $1.3 billion of short-term debt to long-term based on our...

  • Page 88
    ... commodity prices, affecting the cost of our raw materials and energy, • foreign exchange risks, and • interest rates. In the normal course of business, we manage these risks through a variety of strategies, including the use of derivatives. Certain derivatives are designated as either cash flow...

  • Page 89
    ... net losses of $64 million related to cash flow hedges from accumulated other comprehensive loss into net income. Derivatives used to hedge commodity price risks that do not qualify for hedge accounting are marked to market each period and reflected in our income statement. In 2007, we expanded our...

  • Page 90
    ... in pricing the asset or liability. The fair values of our financial assets and liabilities are categorized as follows: 008 Total Level 1 Level 2 Level 3 2007 Total Assets Short-term investments - index funds (a) Available-for-sale securities (b) Forward exchange contracts (c) Commodity contracts...

  • Page 91
    ... plan in June 2001. 2007 Amount Shares Amount Shares 2006 Amount Preferred stock Repurchased preferred stock Balance, beginning of year Redemptions Balance, end of year 0.8 0.5 - 0.5 $÷41 $132 6 $138 0.8 0.5 - 0.5 $÷41 $120 12 $132 0.8 0.5 - 0.5 $÷41 $110 10 $120 PepsiCo, Inc. 2008 Annual...

  • Page 92
    ...$1.8 billion. Lebedyansky is owned 25% and 75% by PBG and us, respectively. The unallocated purchase price is included in other assets on our balance sheet and Lebedyansky's financial results subsequent to the acquisition are reflected in our income statement. 0 PepsiCo, Inc. 2008 Annual Report

  • Page 93
    ... of accountability, and we take responsibility for the quality and accuracy of our financial reporting. Peter A. Bridgman Senior Vice President and Controller Richard Goodman Chief Financial Officer Indra K. Nooyi Chairman of the Board of Directors and Chief Executive Officer PepsiCo, Inc. 2008...

  • Page 94
    ...reasonably likely to materially affect, our internal control over financial reporting. Peter A. Bridgman Senior Vice President and Controller Richard Goodman Chief Financial Officer Indra K. Nooyi Chairman of the Board of Directors and Chief Executive Officer  PepsiCo, Inc. 2008 Annual Report

  • Page 95
    ... audited the accompanying Consolidated Balance Sheets of PepsiCo, Inc. and subsidiaries ("PepsiCo, Inc." or "the Company") as of December 27, 2008 and December 29, 2007, and the related Consolidated Statements of Income, Cash Flows, and Common Shareholders' Equity for each of the fiscal years in the...

  • Page 96
    ... mark-to-market net gains on commodity hedges in corporate unallocated expenses. (d) In 2008, we recognized a non-cash charge of $138 million ($114 million after-tax or $0.07 per share) included in bottling equity income as part of recording our share of PBG's financial results. (e) Represents the...

  • Page 97
    ..., mark-to-market net losses on commodity hedges and certain tax benefits; and • Our 2008 return on invested capital (ROIC) excluding the impact of restructuring and impairment charges (including, for 2008, charges associated with our Productivity for Growth initiatives), mark-to-market net impact...

  • Page 98
    ... in costs of energy and raw materials that we consume. The market value is determined based on average prices on national exchanges and recently reported transactions in the market place. Marketplace spending: sales incentives offered through various programs to our customers and consumers (trade...

  • Page 99
    PepsiCo Board of Directors Ian M. Cook Chairman and Chief Executive Officer Colgate-Palmolive Company 56. Elected 2008. Dina Dublon Consultant, Former Executive Vice President and Chief Financial Officer JPMorgan Chase & Co. 55. Elected 2005. victor J. Dzau, M.D. Chancellor for Health Affairs Duke ...

  • Page 100
    ... on our strategies for growth. CORPORATE Indra K. Nooyi* Chairman of the Board and Chief Executive Officer Mitch Adamek Senior Vice President and Chief Procurement Officer, PepsiCo Jill Beraud Global Chief Marketing Officer Robert Dixon Senior Vice President, Global Chief Information Officer, PBSG...

  • Page 101
    ... Marketing Officer, North America Beverages Neil Campbell President, Tropicana Chris Furman President, PepsiCo Foodservice hugh Johnston* President, Pepsi-Cola North America Beverages Luis Montoya President, Latin America Beverages PEPSICO INTERNATIONAL Michael D. white* Chief Executive Officer...

  • Page 102
    ... stock on the New York Stock Exchange was the price as reported by Bloomberg for the years ending 2004-2008. Past performance is not necessarily indicative of future returns on investments in PepsiCo common stock. EmPLOyEE BENEFIT PLAN PARTICIPANTS PepsiCo 401(K) Plan and PepsiCo Stock Purchase...

  • Page 103
    ...the world's premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything...

  • Page 104
    Corporate Headquarters PepsiCo, Inc. 700 Anderson Hill Road Purchase, NY 10577 www.pepsico.com