Pepsi 2012 Annual Report Download - page 40

Latin America Foods
Either independently or in conjunction with third-party part-
ners, LAF makes, markets, sells and distributes a number of
snack food brands including Marias Gamesa, Cheetos, Doritos,
Ruffles, Emperador, Saladitas, Elma Chips, Rosquinhas Mabel,
Sabritas and Tostitos, as well as many Quaker-branded cereals
and snacks. These branded products are sold to independent
distributors and retailers.
PepsiCo Americas Beverages
Either independently or in conjunction with third-party part-
ners, PAB makes, markets, sells and distributes beverage
concentrates, fountain syrups and finished goods under vari-
ous beverage brands including Pepsi, Mountain Dew, Gatorade,
Diet Pepsi, Aquafina, 7UP (outside the U.S.), Diet Mountain
Dew, Tropicana Pure Premium, Sierra Mist and Mirinda. PAB
also, either independently or in conjunction with third-party
partners, makes, markets and sells ready-to-drink tea and
coffee products through joint ventures with Unilever (under
the Lipton brand name) and Starbucks. Further, PAB manufac-
tures and distributes certain brands licensed from DrPepper
Snapple Group, Inc. (DPSG), including Dr Pepper and Crush,
and certain juice brands licensed from Dole Food Company,
Inc. PAB operates its own bottling plants and distribution
facilities and sells branded finished goods directly to inde-
pendent distributors and retailers. PAB also sells concentrate
and finished goods for our brands to authorized independent
bottlers, who in turn also sell our brands as finished goods to
independent distributors and retailers in certain markets.
PAB’s volume reflects sales to its independent distributors
and retailers, as well as the sales of beverages bearing our
trademarks that bottlers have reported as sold to independent
distributors and retailers. Bottler case sales (BCS) and con-
centrate shipments and equivalents (CSE) are not necessarily
equal during any given period due to seasonality, timing of
product launches, product mix, bottler inventory practices and
other factors. While our revenues are not entirely based on
BCS volume, as there are independent bottlers in the supply
chain, we believe that BCS is a valuable measure as it quanti-
fies the sell-through of our products at the consumer level.
See Note 15 to our consolidated financial statements for
additional information about our acquisitions of The Pepsi
Bottling Group (PBG) and PepsiAmericas, Inc. (PAS) in 2010.
Europe
Either independently or in conjunction with third-party part-
ners, Europe makes, markets, sells and distributes a number of
leading snack foods including Lay’s, Walkers, Doritos, Cheetos
and Ruffles, as well as many Quaker-branded cereals and
snacks, through consolidated businesses as well as through
noncontrolled affiliates. Europe also, either independently
or in conjunction with third-party partners, makes, markets,
sells and distributes beverage concentrates, fountain syrups
and finished goods under various beverage brands includ-
ing Pepsi, Pepsi Max, 7UP, Diet Pepsi and Tropicana. These
branded products are sold to authorized bottlers, independent
distributors and retailers. In certain markets, however, Europe
operates its own bottling plants and distribution facilities.
Europe also, either independently or in conjunction with third-
party partners, makes, markets and sells ready-to-drink tea
products through an international joint venture with Unilever
(under the Lipton brand name). In addition, Europe makes,
markets, sells and distributes a number of leading dairy prod-
ucts including Domik v Derevne, Chudo and Agusha.
Europe reports two measures of volume. Snacks volume
is reported on a system-wide basis, which includes our own
sales and the sales by our noncontrolled affiliates of snacks
bearing Company-owned or licensed trademarks. Beverage
volume reflects Company-owned or authorized bottler sales
of beverages bearing Company-owned or licensed trade-
marks to independent distributors and retailers (see PepsiCo
Americas Beverages above). In 2011, we acquired Wimm-Bill-
Dann Foods OJSC (WBD), Russia’s leading branded food and
beverage company. WBD’s portfolio of products is included
within Europe’s snacks or beverage reporting, depending on
product type.
See Note 15 to our consolidated financial statements for
additional information about our acquisitions of WBD in 2011
and PBG and PAS in 2010.
Asia, Middle East and Africa
Either independently or in conjunction with third-party part-
ners, AMEA makes, markets, sells and distributes a number
of leading snack food brands including Lay’s, Chipsy, Kurkure,
Doritos, Cheetos and Smith’s through consolidated businesses
as well as through noncontrolled affiliates. Further, either
independently or in conjunction with third-party partners,
AMEA makes, markets and sells many Quaker-branded cereals
and snacks. AMEA also makes, markets, sells and distributes
beverage concentrates, fountain syrups and finished goods
under various beverage brands including Pepsi, Mirinda, 7UP,
Mountain Dew, Aquafina and Tropicana. These branded prod-
ucts are sold to authorized bottlers, independent distributors
and retailers. However, in certain markets, AMEA operates
its own bottling plants and distribution facilities. AMEA also,
either independently or in conjunction with third-party part-
ners, makes, markets and sells ready-to-drink tea products
through an international joint venture with Unilever (under the
Lipton brand name). Further, AMEA licenses co-branded juice
products to third-party partners through a strategic alliance
Management’s Discussion and Analysis
2012 PEPSICO ANNUAL REPORT38