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14 PepsiCo, Inc. 2010 Annual Report
Letter to Shareholders
one of the associates who have done,
as they always do, a magnificent
job during trying circumstances.
We all owe every one of them a debt
ofgratitude!
That is especially the case when you
consider that business is conducted
against the backdrop of a constantly
shifting scene. It can be disconcert-
ing. It can be challenging. But it
can also be exciting, and the sense
of commitment and desire that I
feel from the associates in this com-
pany is the thing that keeps our
company fresh and the thing that
keeps our company successful.
Let me close by saying that this has
been another year of excellent per-
formance. We returned $8billion
to you, our shareholders — of that
we are proud. Now that Performance
with Purpose is no longer new, we
can see that the evidence is mount-
ing — what is good for society and
what is good for our business are the
same thing. We are making progress
on all fronts. It is hugely encouraging
and, though the backdrop can be
dicult, we have the resources, the
ingenuity and the desire to keep
moving forward successfully. Of
that, I am certain.
Indra K. Nooyi
Chairman and
Chief Executive Ocer
With the Global Nutrition Group,
we will be able to harness the best of
PepsiCo by retaining the operating
capability within each sector while
centralizing the innovation and
development of these increasingly
in-demand healthier, wholesome
and tastyproducts.
The fifth imperative is to cherish
our PepsiCo associates. We are
fortunate to employ, worldwide,
a truly remarkable set of associates.
The market becomes more competi-
tive every day. It is people who hold
the key to great performance. To be
a good employer is one of the most
important strategic decisions a
company has to make. In this regard,
Performance with Purpose is an
absolutely central part of our recruit-
ment and retention processes.
Many of our new associates come to
us precisely because we are a com-
pany that respects them and
respects the causes that they care
passionatelyabout.
The sixth and final imperative is the
sum total of the other five. It is vital,
in the end, that everything we do adds
up to excellent financial perfor-
mance. When we widen our horizons
we are not, at the same time, losing
our focus on performance. I can make
this commitment — that we have a
laser-like attention on being the best
possible company, financially, that
we canbe.
Conclusion
I am sure you will agree that we
have delivered strong and consistent
performance. Any student of the
numbers could be forgiven for think-
ing that we sailed along the calm
waters with little to concern the
crew. And, in one sense, that would
be right. The crew of PepsiCo is a
remarkably consistent and dedicated
group. I want to pay tribute to every
carbonated category by putting a lot
of weight behind Pepsi Max. In 2011,
we have a laser-like focus on taking
our profitable North America
beverage business and growing it
sustainably for the future. We are
continuing, at the same time, to
invest in emerging and developing
markets — including, of course, the
vital China and Indiamarkets.
Our third imperative is to unleash
the power of the Power of One.
Studies show that, 85percent of the
time, when a person eats a snack, he
or she also reaches for a beverage.
No company on earth is better posi-
tioned to fulfill both sides of that
equation. To truly unleash the power
of the Power of One, in 2010, we
successfully completed the acquisi-
tions of our anchor bottlers, which
enabled us to better service our cus-
tomers. As an integrated operating
company across snacks and bever-
ages, we now can provide incredible
benefits to our retail partners and
consumers. For example, we can
respond to retailer needs with
increased speed and agility; we can
incubate new products in our distri-
bution systems for a longer time; we
can oer integrated in-store displays
tuned to occasions and day parts; we
can leverage our in-store merchan-
dising better and we can truly bring
the power of PepsiCo to all our retail
partners. The opportunities to grow
our top and bottom line through the
Power of One are excitingindeed.
Our fourth imperative is to build and
expand our nutrition business to
rapidly grow our Good-for-You port-
folio of products. With the acquisi-
tion of Wimm-Bill-Dann, PepsiCo’s
annual revenues from nutritious
and functional foods have risen from
$10billion to nearly $13billion.