Pepsi 2015 Annual Report Download - page 21

Table of Contents
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billion and $9.3 billion in 2015, 2014 and 2013, respectively, and approximated 13% of our total net revenue
in 2015 and 14% of our total net revenue in both 2014 and 2013.
See Note 1 to our consolidated financial statements for information about the deconsolidation of our
Venezuelan subsidiaries, which was effective as of the end of the third quarter of 2015.
Europe Sub-Saharan Africa
Either independently or in conjunction with third parties, ESSA makes, markets, distributes and sells 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.
ESSA also, either independently or in conjunction with third parties, makes, markets, distributes and sells
beverage concentrates, fountain syrups and finished goods under various beverage brands including Pepsi,
7UP, Pepsi Max, Mirinda, Diet Pepsi and Tropicana. These branded products are sold to authorized bottlers,
independent distributors and retailers. In certain markets, however, ESSA operates its own bottling plants
and distribution facilities. ESSA 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, ESSA makes, markets, sells and distributes a number of leading dairy products
including Chudo, Agusha and Domik v Derevne. ESSA’s net revenue was $10.5 billion, $13.4 billion and
$13.8 billion in 2015, 2014 and 2013, respectively, and approximated 17% of our total net revenue in 2015,
20% of our total net revenue in 2014 and 21% of our total net revenue in 2013.
Asia, Middle East and North Africa
Either independently or in conjunction with third parties, AMENA makes, markets, distributes and sells a
number of leading snack food brands including Lay’s, Kurkure, Chipsy, Doritos, Cheetos and Crunchy
through consolidated businesses, as well as through noncontrolled affiliates. Further, either independently
or in conjunction with third parties, AMENA makes, markets, distributes and sells many Quaker-branded
cereals and snacks. AMENA also makes, markets, distributes and sells beverage concentrates, fountain syrups
and finished goods under various beverage brands including Pepsi, Mirinda, 7UP, Mountain Dew, Aquafina
and Tropicana. These branded products are sold to authorized bottlers, independent distributors and retailers.
In certain markets, however, AMENA operates its own bottling plants and distribution facilities. AMENA
also, either independently or in conjunction with third parties, makes, markets, distributes and sells ready-
to-drink tea products through an international joint venture with Unilever (under the Lipton brand name).
Further, we license the Tropicana brand for use in China on co-branded juice products in connection with a
strategic alliance with Tingyi (Cayman Islands) Holding Corp. (Tingyi). AMENA’s net revenue was $6.4
billion, $6.6 billion and $6.4 billion in 2015, 2014 and 2013, respectively, and approximated 10% of our
total net revenue in each of 2015, 2014 and 2013.
Our Distribution Network
Our products are brought to market through direct-store-delivery (DSD), customer warehouse and distributor
networks. The distribution system used depends on customer needs, product characteristics and local trade
practices.
Direct-Store-Delivery
We, our independent bottlers and our distributors operate DSD systems that deliver beverages, foods and
snacks directly to retail stores where the products are merchandised by our employees or our independent
bottlers. DSD enables us to merchandise with maximum visibility and appeal. DSD is especially well-suited
to products that are restocked often and respond to in-store promotion and merchandising.