PEPSICO INC (PEP)

PepsiCo, Inc. is a leading global beverage and convenient food company, incorporated in Delaware in 1919 and reincorporated in North Carolina in 1986. Through its own operations, authorized bottlers, contract manufacturers and other third parties, it makes, markets, distributes and sells a wide variety of beverages and convenient foods to customers and consumers in more than 200 countries and territories. Its portfolio includes brands such as Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream.

The company reports in six segments. PepsiCo Foods North America covers convenient foods in the U.S. and Canada, including chips, dips, cereals, granola bars, oatmeal, pasta, rice, and syrups and mixes. In December 2024 it acquired the Strauss Group's 50% stake in Sabra, which became wholly owned. PepsiCo Beverages North America makes and sells concentrates, fountain syrups and finished beverages such as Pepsi, Mountain Dew, Gatorade, Aquafina, Bubly and Propel. It also runs ready-to-drink tea and coffee joint ventures with Unilever (Lipton) and Starbucks, and manufactures or distributes licensed or partner brands from Keurig Dr Pepper, Dole, Ocean Spray, Celsius and Tropicana Beverages Group. International Beverages Franchise sells concentrates to bottlers under brands including 7UP, Mirinda, Pepsi and Sting Energy, and makes SodaStream sparkling water makers. Europe, Middle East and Africa covers both foods and beverages, plus dairy products, with company-owned bottlers. Latin America Foods and Asia Pacific Foods cover convenient foods in their regions. In 2024 the company moved its alcoholic beverage business to a trademark and flavor licensing model.

Customers include wholesale and other distributors, foodservice customers, grocery, drug, convenience, discount and dollar stores, mass merchandisers, membership stores, e-commerce retailers and authorized independent bottlers. Walmart and its affiliates, including Sam's Club, accounted for about 14% of 2025 consolidated net revenue across all segments, and losing them would materially hurt the PFNA and PBNA segments. Sales are generally highest in the third quarter and lowest in the first. In 2025, PepsiCo held about 16% of the U.S. liquid refreshment beverage category, versus about 20% for The Coca-Cola Company.

Products reach market mainly through direct-store-delivery systems, customer warehouse networks and third-party distributors, and are also sold through e-commerce platforms. Principal inputs include corn, potatoes, oats, wheat, flour, sugar, sweeteners, juice concentrates, milk, cocoa, oils and water. Key packaging materials are plastic resin (including PET), aluminum, glass and cardboard, and fuel, electricity and natural gas are also important. Commodity price risk is managed with fixed-price contracts, pricing agreements and derivatives. Independent bottlers typically hold exclusive territories to make and sell trademarked beverages. The Coca-Cola Company is the primary beverage competitor, and others include Nestlé, Mondelēz, Mars, Keurig Dr Pepper, Monster, Red Bull, Kraft Heinz and Utz. Research centers are located in Brazil, China, India, Ireland, Mexico, Russia, South Africa, the UK and the US. The company is subject to extensive food safety, labeling, packaging, environmental, trade and tax regulation worldwide.