pepsi public relation

7/27/2019 Pepsi Public Relation

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Project :- Public relation ofPepsi Co.

Submitted by :- Garryson Dias

Submitted to :- Prof. Shubhangi

SYBMM

Roll No. 32


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Introduction

PepsiCo, Incorporated is a global American beverage and snackcompany. The company manufactures, markets and sells avariety of carbonated and non-carbonated beverages, as well assalty, sweet and grain-based snacks, and other foods. Besidesthe Pepsi-Cola brands (including Mountain Dew), the companymanufactures Quaker Oats, Gatorade, Frito-Lay, SoBe, andTropicana. In many ways, PepsiCo differs from its competitor,The Coca-Cola Company, having almost three times as manyemployees and larger revenues (See comparison at YahooFinance). The company formed for distribution and bottling isThe Pepsi Bottling Group (NYSE: PBG). PepsiCo is a SIC 2080(beverage) company.Pepsi Cola is a cola soft drink produced and manufactured byPepsiCo. It is sold worldwide in stores, restaurants and fromvending machines. The drink was first made in the 1890s by

pharmacist Caleb Bradham. The brand was trademarked on June

16, 1903. There have been many Pepsi variants produced overthe years, including Diet Pepsi, Crystal Pepsi, Pepsi Max, PepsiBlue, Pepsi Gold.

During The Great Depression, Pepsi gained popularity followingthe introduction in 1934 of a 12-ounce bottle. Initially priced at10 cents, sales were slow, but when the price was slashed to 5cents, sales went through the roof. With twelve ounces a bottle

instead of the six ounces Coca-Cola sold, Pepsi turned the price


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difference to its advantage with a slick radio advertisingcampaign, featuring the "Pepsi cola hits the spot / Twelve fullounces, that's a lot / Twice as much for a nickel, too / Pepsi-Colais the drink for you,", encouraging price-watching consumers toswitch to Pepsi, while obliquely referring to the Coca-Colastandard of six ounces a bottle for the price of five cents (anickel), instead of the twelve ounces Pepsi sold at the same

price.

Overview

The company consists of Frito-Lay North America, PepsiCoBeverages North America, PepsiCo International and QuakerFoods North America. PepsiCo brands are available in nearly200 countries and territories and generate sales at the retail levelof about $92 billion.

Some of PepsiCo's brand names are more than 100-years-old,

but the corporation is relatively young. PepsiCo was founded in1965 through the merger of Pepsi-Cola and Frito-Lay.Tropicana was acquired in 1998 and PepsiCo merged with TheQuaker Oats Company, including Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needsand preference -- from fun-for-you items to product choices thatcontribute to healthier lifestyles.

PepsiCos mission is To be the world's premier consumerproducts company focused on convenient foods and beverages.We seek to produce healthy financial rewards to investors as we

provide opportunities for growth and enrichment to ouremployees, our business partners and the communities in whichwe operate. And in everything we do, we strive for honesty,fairness and integrity.

Shareholders


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PepsiCo (symbol: PEP) shares are traded principally on the NewYork Stock Exchange in the United States. The company is alsolisted on the Amsterdam, Chicago and Swiss stock exchanges.PepsiCo has consistently paid cash dividends since thecorporation was founded.

Corporate Citizenship

At PepsiCo, we believe that as a corporate citizen, we have a

responsibility to contribute to the quality of life in ourcommunities. This philosophy is expressed in our sustainabilityvision which states: PepsiCos responsibility is to continuallyimprove all aspects of the world in which we operate environment, social, economic -- creating a better tomorrowthan today.

Our vision is put into action through programs and a focus onenvironmental stewardship, activities to benefit society, and a

commitment to build shareholder value by making PepsiCo atruly sustainable company.

PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York,approximately 45 minutes from New York City. The seven-

building headquarters complex was designed by Edward Durrell

Stone, one of America's foremost architects. The buildingoccupies 10 acres of a 144-acre complex that includes theDonald M. Kendall Sculpture Gardens, a world- acclaimedsculpture collection in a garden setting.

The collection of works is focused on major twentieth centuryart, and features works by masters such as Auguste Rodin, HenriLaurens, Henry Moore, Alexander Calder, Alberto Giacometti,

Arnaldo Pomodoro and Claes Oldenberg. The gardens originallywere designed by the world famous garden planner, Russell


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Page, and have been extended by Franois Goffinet. Thegrounds are open to the public, and a visitor's booth is inoperation during the spring and summer.

Corporate overview

PepsiCo is a world leader in convenient snacks, foods, andbeverages, with revenues of more than $35 billion and over168,000 employees. PepsiCo owns some of the world's most

popular brands, including Pepsi-Cola, Mountain Dew, DietPepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our

brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-

warehouse, and food service and vending.PepsiCo was founded in 1965 through the merger of Pepsi-Colaand Frito-Lay. Tropicana was acquired in 1998 and PepsiComerged with the Quaker Oats Company, including Gatorade, in2001.DivisionsWe report our operating results as follows, by divisions:Frito-Lay North America (FLNA)

PepsiCo Beverages North America (PBNA)Quaker Foods North America (QFNA)PepsiCo International (PI)

Volume ReportingOur operating divisions report volume based on the followingmeasures:

Division Volume Measure

FLNA Pounds


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PBNA8 oz equivalent cases (192 oz percase)

QFNA Pounds

PI

Int'lBeverages

8 oz equivalent cases (192 oz percase)

Int'l Snacks Kilos

Int'l Foods KilosBecause our divisions each use different measures of physicalunit volume, a common servings metric is necessary to reflectPepsiCo's consolidated physical unit volume. Our divisions'

physical volume measures are converted into servings, based onU.S. Food and Drug Administration guidelines for singleserving sizes of our products, as follows:

Salty

snacks

30 grams

Sweetsnacks

40 grams

Beverages 8 ounces

OtherFoods

45 grams

Fiscal Year and Quarterly ReportingPepsiCo's fiscal year consists of 52 weeks and is divided into 13

4-week periods. Our fiscal year ends on the last Saturday inDecember and, as a result, a 53rd week is added every five orsix years.Most of our volume and financial results are reported based onfiscal quarters, with some exceptions, as described in the chartand notes below:

Division Q1 Q2 Q3 Q4

FLNA 3 fiscalperiods

3 fiscalperiods

3 fiscalperiods

4 fiscalperiods


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PBNA 3 fiscalperiods

3 fiscalperiods

3 fiscalperiods

4 fiscalperiods

QFNA 3 fiscal

periods

3 fiscal

periods

3 fiscal

periods

4 fiscal

periodsPI 2 months 3 months 3 months 4 months

Notes on quarterly reportingPBNA: Volume is reported as described in the chart above forthe Gatorade and Tropicana brands, and is reported based onmonthly bottler case sales for products distributed by our

bottlers (Q1=3 months, Q2=2 months, Q3=3 months, Q4=4months).

PepsiCo International: The volume and financial results of mostof our international businesses are reported on a monthlycalendar basis.

Shareholder Services

Registered Shareholder Online Account Access

ContactsBuyDIRECT PlanSafekeeping of CertificatesDirect Deposit of DividendsDividend ReinvestmentFrequently Asked QuestionsContacts:Transfer Agent

BNY Mellon Shareowner ServicesPepsiCo, Inc.P.O. Box 11258Church Street Station

New York, New York 10286-1258Telephone: (800) 226-0083(212) 815-3700 (outside the U.S.)E-Mail: [email protected]

Web: www.stockbny.com


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PepsiCo, Inc.Manager, Shareholder RelationsPepsiCo, Inc.700 Anderson Hill RoadPurchase, NY 10577Telephone: (914)253-3055BuyDIRECT PlanPepsiCo's BuyDIRECT Plan, sponsored by BNY MellonShareowner Services, allows interested investors to purchaseshares of PepsiCo stock. Investors can make their initial

purchase of PepsiCo stock and additional cash investmentsthrough the Plan. BuyDIRECT also offers dividend

reinvestment and sale of shares. Please contact BNY MellonShareowner Services at800-226-0083 or 212-815-3700 for more information.Shares can be purchased online at www.stockbny.com. Click onthe Initial Purchase button listed under Shareholder AccountAccess. You can view general information and an enrollmentform for our BuyDIRECTSafekeeping of Certificates

If you enroll in our BuyDIRECT Plan, our transfer agent willprovide safekeeping of all your stock certificates enrolled in theprogram. To submit your certificates for safekeeping, send thecertificates via insured certified or registered mail with a returnreceipt requested to our transfer agent, BNY Mellon ShareownerServices. See the description of the BuyDIRECT Plan for moredetailsDirect Deposit of Dividends

If you are interested in having your dividends deposited directlyinto your bank account, please contact our transfer agent, BNYMellon Shareowner Services.


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Our Values reflect our aspirations -- the kind of company we

want PepsiCo to be. We express our values in the form of acommitment.

Our Commitment

Our commitment is to deliver sustained growth, throughempowered people, acting with responsibility and building trust.Heres what this means:

Sustained Growth is fundamental to motivating and measuringour success. Our quest for sustained growth stimulatesinnovation, places a value on results, and helps us understandwhether todays actions will contribute to our future. It is aboutgrowth of people and company performance. It prioritizesmaking a difference and getting things done.

Empowered People means we have the freedom to act and thinkin ways that we feel will get the job done, while being consistentwith the processes that ensure proper governance and beingmindful of the rest of the companys needs.

Responsibility and Trust form the foundation for healthygrowth. Its about earning the confidence that other people placein us as individuals and as a company. Our responsibility means

we take personal and corporate ownership for all we do, to begood stewards of the resources entrusted to us. We build trust


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between ourselves and others by walking the talk and beingcommitted to succeeding together.Guiding Principles

This is how we carry out our commitiment.

We must always strive to:Care for customers, consumers and the world we live in. We aredriven by an intense, competitive spirit in the marketplace, butwe direct this spirit toward solutions that achieve a win for each

of our constituents as well as a win for the corporation. Oursuccess depends on a thorough understanding of our customers,consumers and communities. Caring means going the extra mile.Essentially, this is a spirit of growing rather than taking.Sell only products we can be proud of.The test of our standardsis that we must be able to personally endorse our productswithout reservation and consume them ourselves. This principleextends to every part of the business, from the purchasing of

ingredients to the point where our products reach theconsumers hands.Speak with truth and candor. We speak up, telling the whole

picture, not just what is convenient to achieving individualgoals. In addition to being clear, honest and accurate, we takeresponsibility to ensure our communications are understood.Balance short term and long term. We make decisions that hold

both short-term and long-term risks and benefits in balance over

time. Without this balance, we cannot achieve the goal ofsustainable growth.Win with diversity and inclusion. We leverage a workenvironment that embraces people with diverse backgrounds,traits and different ways of thinking. This leads to innovation,the ability to identify new market opportunities, all of whichhelps develop new products and drives our ability to sustain ourcommitments to growth through empowered people.


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Respect others and succeed together. This company is built onindividual excellence and personal accountability, but no onecan achieve our goals by acting alone. We need great peoplewho also have the capability of working together, whether instructured teams or informal collaboration. Mutual success isabsolutely dependent on treating everyone who touches the

business with respect, inside and outside the company. A spiritof fun, our respect for others and the value we put on teamworkmake us a company people enjoy being part of, and this enablesus to deliver world-class performance.

PepsiCo Environmental Policy

PepsiCos responsibility is to continually improve all aspects ofthe world in which we operate environment, social and economic creating a better tomorrowthan today.Sustainability VisionPepsiCos Sustainability Vision is simple in concept, but far-reaching in impact. Environmentalstewardship is a core part of this vision. PepsiCo recognizes ourresponsibility to be a goodsteward of the environment, both as a corporate citizen and as away to support the companysgoals.Our environmental policy includes the following:1. We will comply with applicable legal and regulatoryrequirements and company standardsand conduct regular audits to verify compliance.2. We will apply sound environmental management practiceswhere, in our judgement, existinglegal requirements are insufficient for our operations.3. We will consider our potential environmental impacts in ourdaily business decision-making

processes.


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4. We will encourage conservation of natural resources,recycling, source reduction and

pollution control to ensure cleaner air and water and to reducelandfill wastes. We will shareenvironmental best practices across the company.5. We will monitor emerging issues and keep abreast ofregulatory changes, technologicalinnovations and stakeholder interests. Working withgovernments, academia,nongovernmental organizations, business associations and otherinterested stakeholders, wewill strive to develop effective and sustainable solutions to

environmental challenges we facein our business activities.6. We will establish metrics to monitor our environmental

performance, and use these to setgoals for continuous improvement.7. We will implement environmental management systems toidentify and manageenvironmental risks, obligations and opportunities.

8. We will work with our licensed bottlers, suppliers andcustomers to reduce the environmentalimpacts of our products throughout their life cycle.9. We will annually review the companys performance inimplementing this policy.10. We will review this policy periodically and update it asneeded.It is the responsibility of both corporate and divisional leaders to

ensure this policy is effectivelycommunicated, understood and implemented throughoutPepsiCo operations worldwide. Allemployees are responsible for understanding the impacts of this

policy on their day-to-dayactivities and are encouraged to apply good environmentalstewardship both in and beyond theworkplace.


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Criticisms

PepsiCo in India

PepsiCo gained entry to India in 1988 by creating a joint venturewith the Punjab government-owned Punjab Agro IndustrialCorporation (PAIC) and Voltas India Limited. This joint venturemarketed and sold Lehar Pepsi until 1991, when the use offoreign brands was allowed; PepsiCo bought out its partners andended the joint venture in 1994. Others claim that firstly Pepsiwas banned from import in India, in 1970, for having refused torelease the list of its ingredients and in 1993, the ban was lifted,

with Pepsi arriving on the market shortly afterwards. Thesecontroversies are a reminder of "India's sometimes acrimoniousrelationship with huge multinational companies." Indeed, someargue that PepsiCo and The Coca-Cola Company have "beenmajor targets in part because they are well-known foreigncompanies that draw plenty of attention."

In 2003, the Centre for Science and Environment (CSE), a non-

governmental organization in New Dehli, said aerated watersproduced by soft drinks manufacturers in India, includingmultinational giants PepsiCo and The Coca-Cola Company,contained toxins, including lindane, DDT, malathion andchlorpyrifos pesticides that can contribute to cancer, a

breakdown of the immune system and cause birth defects.Tested products included Coke, Pepsi, 7 Up, Mirinda, Fanta,Thums Up, Limca, and Sprite. CSE found that the Indian-

produced Pepsi's soft drink products had 36 times the level of


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pesticide residues permitted under European Union regulations;Coca Cola's 30 times. CSE said it had tested the same productsin the US and found no such residues. However, this was theEuropean standard for water, not for other drinks. No law bansthe presence of pesticides in drinks in India.

The Coca-Cola Company and PepsiCo angrily deniedallegations that their products manufactured in India containedtoxin levels far above the norms permitted in the developedworld. But an Indian parliamentary committee, in 2004, backedup CSE's findings and a government-appointed committee, isnow trying to develop the world's first pesticides standards for

soft drinks. Coke and PepsiCo opposed the move, arguing thatlab tests aren't reliable enough to detect minute traces of

pesticides in complex drinks. On December 7, 2004, India'sSupreme Court ruled that both PepsiCo and competitor TheCoca-Cola Company must label all cans and bottles of therespective soft drinks with a consumer warning after testsshowed unacceptable levels of residual pesticides.

Both companies continue to maintain that their products meet allinternational safety standards without yet implementing theSupreme Court ruling. As of 2005, The Coca-Cola Companyand PepsiCo together hold 95% market share of soft-drink salesin India. PepsiCo has also been alleged to practice "water

piracy" due to its role in exploitation of ground water resourcesresulting in scarcity of drinking water for the natives ofPuthussery panchayat in the Palakkad district in Kerala, India.

Local residents have been pressuring the government to closedown the PepsiCo unit in the village.

In 2006, the CSE again found that soda drinks, including bothPepsi and Coca-Cola, had high levels of pesticides in theirdrinks. Both PepsiCo and The Coca-Cola Company maintainthat their drinks are safe for consumption and have publishednewspaper advertisements that say pesticide levels in their

products are less than those in other foods such as tea, fruit and


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dairy products. In the Indian state of Kerala, sale and productionof Pepsi-Cola, along with other soft drinks, has been banned.Five other Indian states have announced partial bans on thedrinks in schools, colleges and hospitals.

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