PEPSICO, INC.

This research provides a description and an analysis of Pepsico, Inc. The findings of the research are presented in discussions related to (1) company background, (2) major products (goods and services, (3) the competitive environment, (4) major company offices, (5) organizational structure, and (6) employment opportunities for persons newly graduated from college.

Many persons had been experimenting with a variety of ingredients for almost one hundred years, in an attempt to develop a satisfactory soft drink, when John Pemberton concocted a blend of kola nut, fruit syrup, and coca leaf extract in Columbus, Georgia in 1867.1 Pemberton did not market his new formula at the time of its discovery. It was not until 1886, after he had moved to Atlanta, that he presented the product to the public.

Pemberton was a pharmacist, and his assistant at the pharmacy accidentally mixed his formula syrup with carbonated water. Prior to this accidental mixture, Pemberton had mixed his syrup with plain water. The accidental mixture of the syrup and carbonated water, however, became CocaCola, and the American soft drink industry was born. Soon thereafter, Dr. Pepper was introduced in Texas, and much later, in 1903, Pepsi

1L. Dietz, Soda Pop (New York: Simon and Schuster, 1973), 15.

Cola was introduced in North Carolina.3 Pepsi Cola remained one of the alsorans of the industry until the 1960

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h is projected in the 11.5 percent range, while growth of only 2.5 percent is projected for the regular, sugarflavored colas. Internationally, growth projections for the industry are even stronger, with a 9.0to11.0 percent annual growth rate projected for the firsthalf of the 1990s. The per capita consumption of soft drinks in the United States more than doubled between 1965 and 1984.16 In 1984, per capita consumption stood at just under 39 gallons per year in the United States. Per capita consumption growth continued through 1990, but at a slower rate, reaching a per capita consumption level of 48 gallons. In 1990, domestic soft drink prices began increasing for the first time since 1985, and volume growth slowed in response. The demographics of the American population are changing significantly. With respect to the soft drink industry, the most important changes are (1) the aging of the babyboom generation, which fueled the rapid growth of the industry in the 1960s and 1970s, and (2) the declining proportion of __________ 15W. Konrad, and G. DeGeorge, "Sorry, No Pepsi. How 'Bout A Coke?" Business Week, 27 May 1991, 7172. 16W. A. Wise, "Beverage/Soft Drink Industry, Value Line Investment Surve
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Approximate Word count = 2401
Approximate Pages = 10 (250 words per page)

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