Pepsi 2013 Annual Report Download - page 53

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PepsiCo Americas Beverages
Either independently or in conjunction with third parties, PAB makes, markets, sells and distributes beverage
concentrates, fountain syrups and finished goods under various beverage brands including Pepsi, Gatorade,
Mountain Dew, 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 parties, 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 manufactures and distributes certain brands licensed from DPSG,
including Dr Pepper, Crush and Schweppes, and certain juice brands licensed from Dole and Ocean Spray.
PAB operates its own bottling plants and distribution facilities and sells branded finished goods directly to
independent distributors and retailers. PAB also sells concentrate and finished goods for our brands to
authorized and 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 have been sold through our authorized independent bottlers that have been
reported as sold to independent distributors and retailers. Bottler case sales (BCS) and concentrate 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 quantifies the sell-through of our products at the consumer level.
Europe
Either independently or in conjunction with third parties, Europe makes, markets, sells and distributes a
number of leading snack food brands 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 parties, makes, markets, sells and
distributes beverage concentrates, fountain syrups and finished goods under various beverage brands
including 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 parties, 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
products 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 independent bottler sales of beverages
bearing Company-owned or licensed trademarks to independent distributors and retailers (see PepsiCo
Americas Beverages above). In 2011, we acquired 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 acquisition of
WBD in 2011.
Asia, Middle East and Africa
Either independently or in conjunction with third parties, AMEA makes, markets, sells and distributes a
number of leading snack food brands including Lay’s, Kurkure, Chipsy, Doritos, Cheetos and Smith’s through
consolidated businesses as well as through noncontrolled affiliates. Further, either independently or in
conjunction with third parties, AMEA makes, markets and sells many Quaker-branded cereals and snacks.