Pepsi 2015 Annual Report Download - page 29

Table of Contents
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perception of social media posts or other information disseminated by us or our employees, agents, customers,
suppliers, bottlers, distributors, joint venture partners or other third parties; consumer perception of our
employees, agents, customers, suppliers, bottlers, distributors, joint venture partners or other third parties or
the business practices of such parties; or a downturn in economic conditions. Any of these changes may
reduce consumers’ willingness to purchase our products.
Our continued success is also dependent on our product and marketing innovation, including: maintaining a
robust pipeline of new products; improving the quality of existing products; and the effectiveness of our
product packaging and distribution, advertising campaigns and marketing programs, including our ability to
successfully adapt to a rapidly changing media environment, including through use of social media and online
advertising campaigns and marketing programs.
Although we devote significant resources to the items mentioned above, there can be no assurance as to our
continued ability to develop, launch and maintain successful new products or variants of existing products
in a timely manner or our ability to correctly anticipate or effectively react to changes in consumer preference
or develop and effectively execute advertising and marketing campaigns that appeal to customers and
consumers. Our failure to make the right strategic investments to drive innovation or successfully launch
new products or variants of existing products could decrease demand for our existing products by negatively
affecting consumer perception of existing brands and may result in inventory write-offs and other costs that
could adversely affect our business, financial condition or results of operations.
Changes in, or failure to comply with, laws and regulations applicable to our products or our business
operations could adversely affect our business, financial condition or results of operations.
Our businesses are subject to various laws and regulations administered by federal, state and local
governmental agencies in the United States, as well as government entities and agencies outside the United
States, including laws and regulations relating to the production, content, quality, safety, storage, distribution,
sale, display, advertising, marketing, labeling, transportation and use of products, as well as our occupational
health and safety practices. Many of these laws and regulations have differing or conflicting legal standards
across the various markets where our products are made, manufactured, distributed or sold and, in certain
markets, such as developing and emerging markets, may be less developed or certain. In addition, these laws
and regulations and related interpretations may change, sometimes dramatically, as a result of a variety of
factors, including political, economic or social events. Such changes may include changes in: food and drug
laws; laws related to product labeling, advertising and marketing practices; laws regarding the import or
export of our products or ingredients used in our products; laws and programs restricting the sale and
advertising of certain of our products; laws and programs aimed at reducing, restricting or eliminating
ingredients or substances in, or attributes of, certain of our products; laws and programs aimed at discouraging
the consumption or altering the package or portion size of certain of our products, including laws imposing
restrictions on the use of government funds or programs, such as the Supplemental Nutrition Assistance
Program, to purchase certain of our products; increased regulatory scrutiny of, and increased litigation
involving product claims and concerns (whether or not valid) regarding the effects on health of ingredients
or substances in, or attributes of, certain of our products, including without limitation those found in energy
drinks; state consumer protection laws; taxation requirements, including the imposition or proposed
imposition of new or increased taxes or other limitations on the sale of our products; accounting rules and
interpretations; competition laws; anti-corruption laws; employment laws; privacy laws; laws regulating the
price we may charge for our products; laws regulating water rights and access to and use of water or utilities;
and environmental laws, including laws relating to the regulation of water treatment and discharge of
wastewater and air emissions.