Pepsi 2009 Annual Report Download - page 10

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2. Ensure Sustainable, Profitable Growth in Global
Beverages. The merger with our anchor bottlers creates a
lean, agile organization in North America with an optimized
supply chain, a flexible go-to-market system and enhanced
innovation capabilities. When combined with the actions we
are taking to refresh our brands across the entire beverage
category, we believe this game-changing transaction will
enable us to accelerate our top-line growth and also improve
our profitability. We continue to see significant areas of
global beverage growth, particularly in developing markets
and in evolving categories. We will invest in those attractive
opportunities, concentrating in geographies and categories
in which we are the leader or a close second, or where the
competitive game remains wide open. Additionally, we will
use our R&D capabilities to develop low- and zero-calorie
beverages that taste great and add positive nutrition such
as fiber, vitamins and calcium.
3. Unleash the Power of “Power of On e.” PepsiCo is in the
unique position to leverage two extraordinary consumer
categories that have special relevance to retailers across the
globe. Our snacks and beverages are both high-velocity cat-
egories; both generate retail traffic; both are very profitable;
and both deliver exceptional cash flow. The combination of
snacks and beverages—with our high-demand global and
local brands—makes PepsiCo an essential partner for large-
format as well as small-format retailers. We will increasingly
use this portfolio and the high coincidence of consumption
of these products through integrated offerings (products,
marketing and merchandising) to create value for consumers
and deliver greater top-line growth for retailers. We also will
be accelerating Power of One supply chain and back-office
synergies in many regions to improve profitability and
enhance customer service.
4. Rapidly Expand Our “Good-for-You” Portfolio. PepsiCo
currently has a roughly $10 billion core of “Good-for-You”
products anchored by: Tropicana, Naked juice, Lebedyansky,
Sandora and our other juice brands; Aquafina; Quaker Oats;
Gatorade (for athletes); the new dairy joint venture with
Almarai; and local “Good-for-You” products and brands. We will
build on this core with an increasing stream of science-based
innovation derived from the R&D capabilities that we have
been ramping up over the past couple of years, as well as from
targeted acquisitions and joint ventures. We will be investing
to accelerate the growth of these platforms, and we will use
the knowledge from these initiatives to improve our core
snack and beverage offerings and also to develop highly nutri-
tious products for undernourished people across the world.
5. Continue to Deliver on Our Environmental
Sustainability Goals and Commitments. We are commit-
ted to protecting the Earth’s natural resources and are well
on our way to meeting our public goals for meaningful re-
ductions in water, electricity and fuel usage. Our businesses
around the world are implementing innovative approaches
to be significantly more efficient in the use of land, energy,
water and packaging—and we are actively working with the
communities in which we operate to be responsive to their
resource needs. In 2009, we formalized our commitment
to water as a human right, and we will focus not only on
world-class efficiency in our operations, but also on preserv-
ing water resources and enabling access to safe water. Our
climate change focus is on reducing our carbon footprint,
including a reduction in absolute greenhouse gas emissions
through continued improvement in energy efficiency and
the use of alternative energy sources. We actively work with
our farmers to promote sustainable agriculture—and we are
developing new packaging alternatives in both snacks and
beverages to reduce our impact on the environment.
6. Cherish Our Associates and Develop the Leadership to
Sustain Our Growth. We have an extraordinary talent base
across our global organization—in our manufacturing facilities,
our sales and distribution organizations, our marketing groups,
our staff functions and with our general managers. As we
expand our businesses, we are placing heightened focus on
ensuring that we maintain an inclusive environment and on
4PepsiCo, Inc. 2009 Annual Report
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