Pepsi 2015 Annual Report Download - page 6

#1
contributor to retail sales
growth in the U.S. in 2015,
generating more growth
than the next 15 largest F&B
manufacturers combined.2
members are clear-eyed, outspoken and
committed, always challenging us to set our
sights high while understanding that it is a
mistake to make short-term moves for the sake
of short-term gains without advancing our
long-terminterests.
And I could not ask for a more capable or
dedicated senior management team. Our
six sector leaders have nearly 140years of
combined PepsiCo experience across multiple
categories, markets and functions. We have
also brought in leaders from other fields and
industries to help us think in new ways about
our business. From establishing a global
designgroup to doubling down on R&D, we
have never been afraid to do what is necessary
to keep PepsiCo on the right course. This spirit
is what enables us to consistently grow our
business and meet the needs of our customers.
And during the course of 2015, we received
numerous customer awards, including:
Innovation Supplier of the Year from 7-Eleven,
Vendor of the Year from Dollar General, the
Think Customer Award from CVS, Supplier of
the Year from Target, and Food & Beverage
Supplier of the Year from Walmart.
In the months and years to come, we will
need to embrace this same spirit, never losing
sight of the fundamentals that have always
made us strong, while making those changes
that will help secure our future. Specifically, our
long-term planning is focused on five priori-
ties — what we call “the 5C’s” — that leverage
our global scale: Upgrading our commercial
agenda, building new capabilities, elevating
our focus on costs and fostering a culture
of collaboration, while making sure we
are exercising discipline when it comes to
capital returns.
Upgrading our commercial agenda
In 2015, we delivered another year of strong
organic revenue growth. PepsiCo was once
again the single largest contributor to
U.S.retail sales growth among all food and
beverage (F&B) manufacturers. We gener-
ated $1.6billion of U.S. retail sales growth in
all measured channels — more than the next
15largest F&B manufacturers combined. Our
U.S. beverage business had a particularly
engaging culture inside PepsiCo designed to
propel our company forward.
These priorities have served us well in recent
years, and we have set new standards for how
responsible, high- performing companies must
operate. But we should not expect the waters
we are entering to be any calmer than the
waters we have already crossed. In fact, there
are signs the winds may pick up.
Invirtually every sector, the pace of change
is accelerating, creating new opportunities,
new challenges and new uncertainties. To
cite one example, recent research suggests
that the average lifespan of a company listed
on the S&P 500 Index has decreased by more
than50years in the last century, down from
67years in the 1920s to just 15 years today.
In such an economy, we will need to become
more nimble and more adept — and we
will need to redouble our commitment to
Performance with Purpose.
This means building on our progress to date
to achieve even greater results in the years
ahead, focused on further transforming our
products, protecting the planet and enriching
the lives of people around the world. These
priorities are more important now than ever,
and this year we will be sharing an ambitious
sustainability agenda for the coming decade.
As we continue on this journey, we will also
need to become comfortable continuously
reevaluating and reimagining every aspect of
our business — “living in beta,” as some call
it — pushing ourselves to out- innovate our
competitors today so we can out- perform
them tomorrow. We will need to embrace a
new kind of agility, moving swiftly without
creating instability in our business. And we
willneed to empower everyone to meet his
andher own individual responsibilities while
also embracing a collective responsibility
for the success or failure of our company as
a whole.
This sort of dexterity is what will separate
the winners from the losers in this economy,
and I am confident PepsiCo will be a winner.
Helping to guide our company and our
long-term planning is an outstanding Board
of Directors with the breadth of experi-
ences andperspectives needed to address
present and future business needs. Our board
2. Based in part on data reported by Information Resources, Inc. through its Syndicated Advantage Service for the Total U.S. Multi- Outlet
Plus Convenience for the 52-week period ending December27, 2015, using PepsiCo’s custom research de nitions.
PepsiCo and the NBA
formed a landmark food
and beverage marketing
partnership. The company
now sponsors the four
major professional sports
leagues in NorthAmerica.
4 PEPSICO