PepsiCo was founded in 1902 by American pharmacist and businessman Caleb Bradham as the Pepsi-Cola Company. Bradham, who hoped to emulate the success of Coca-Cola, marketed the beverage from his pharmacy and registered a patent for its recipe the following year. Today, Pepsi is a global company with a portfolio of 23 billion-dollar brands, or brands earning more than $1 billion in annual revenue. Sixteen of these brands are beverage-related, while the remaining seven are associated with snacks and other food products.
Subsidiary / Division
Business Category
Key Differentiator
Integration Strategy
Pepsi
Carbonated Soft Drinks
Iconic cola and soft drink brand.
Serves as the flagship brand of PepsiCo, representing its core beverage product category.
Lay’s
Snack Foods
Leading brand of potato chips and snacks.
Complements PepsiCo’s beverage portfolio with popular snack products, offering a diverse range of choices to consumers.
Gatorade
Sports and Hydration Beverages
Sports drinks and electrolyte solutions.
Expands into the sports and hydration market, catering to athletes and active individuals.
Tropicana
Fruit Juices and Beverages
Wide range of fruit juices and beverages.
Offers a variety of non-carbonated beverage options, including juices, aligning with consumer preferences.
Quaker Oats
Breakfast Foods and Snacks
Oat-based products, cereals, and snacks.
Diversifies into the breakfast and snack market, offering nutritious options and convenience.
Frito-Lay
Snack Foods
Snack division with multiple snack brands.
Strengthens PepsiCo’s presence in the snack industry, providing a wide array of snack options.
PepsiCo Beverages North America
Beverage Distribution
Beverage distribution and sales in North America.
Manages the distribution of PepsiCo beverages, ensuring widespread availability.
PepsiCo Foods North America
Snack Foods Distribution
Snack distribution and sales in North America.
Manages the distribution of PepsiCo snacks, making products accessible to consumers.
PepsiCo International
Global Operations and Expansion
Oversees international operations and expansion.
Supports PepsiCo’s global growth strategy, expanding its footprint into international markets.
Tostitos
Snack Foods
Tortilla chips and dips.
Offers a range of snack options, including tortilla chips and dips, complementing the snack portfolio.
Doritos
Snack Foods
Popular brand of flavored tortilla chips.
Adds to the snack offerings with bold-flavored tortilla chips, appealing to a wide audience.
Mountain Dew
Carbonated Soft Drinks
Citrus-flavored soft drink brand.
Expands the soft drink category with citrus-flavored options, targeting a specific consumer base.
Aquafina
Bottled Water
Bottled water brand.
Addresses the demand for bottled water as a healthier beverage alternative.
Fountain Beverage
Beverage Dispensing Services
Beverage dispensing solutions for restaurants.
Provides beverage solutions to restaurants and foodservice establishments, enhancing accessibility.
Naked Juice
Juice and Smoothies
Premium juice and smoothie brand.
Offers premium juice and smoothie options, catering to health-conscious consumers.
In addition to the original Pepsi-Cola drink, PepsiCo owns:
Mountain Dew and Diet Mountain Dew – a citrus-flavored soft drink acquired by PepsiCo in 1964.
Diet Pepsi and Pepsi Max – Pepsi-Cola derivatives that were introduced in 1964 and 1993 respectively.
7 Up – Keurig Dr Pepper owns 7 Up in the North American market, while PepsiCo owns the distribution rights for international markets.
Lipton – in partnership with Unilever, PepsiCo also owns a range of Lipton ready-to-drink tea beverages. One such product is Brisk, a tea and juice brand that surpassed $1 billion in revenue in 2012.
Sierra Mist – a lemon-lime flavored soft drink designed to compete with 7 Up in the North American market.
Non-carbonated beverages
In non-carbonated beverages, PepsiCo owns:
Gatorade – a line of sports-themed beverages and associated food products. Gatorade was originally purchased by the Quaker Oats Company in 1983 that in turn was acquired by PepsiCo in 2000.
Aquafina – a purified bottled water brand derived from municipal tap water. Zero-calorie and zero-carbohydrate flavored water is also sold.
Naked Juice – a smoothie and juice brand acquired by PepsiCo in 2006. Naked Juice also sells coconut water and protein-based smoothies.
Starbucks RTD – in 2015, PepsiCo partnered with Starbucks to market and distribute Starbucks ready-to-drink (RTD) coffee beverages in Latin America.
Snacks and other foods
Lastly, here is a look at some of the non-beverage related brands PepsiCo owns:
Frito-Lay – a potato-chip brand acquired by Pepsi in 1965, now operating as a subsidiary. As part of the deal, PepsiCo gained access to popular snack foods such as Tostitos, Ruffles, and Cheetos.
Doritos – an immensely popular flavored tortilla chip range that Pepsi also acquired in the above deal.
Quaker Oats Company – an American food conglomerate founded in 1850 with a focus on hot and cold breakfast cereals, cookies, barley, and cornmeal. Quaker Oats Company is a relatively recent acquisition for PepsiCo, occurring in 2001.
Key takeaways:
PepsiCo was founded in 1902 by American pharmacist and businessman Caleb Bradham as the Pepsi-Cola Company. Today, PepsiCo has a portfolio of 23 billion-dollar products.
In carbonated beverages, PepsiCo owns Mountain Dew and Pepsi and their respective derivatives. It also owns ready-to-drink Lipton tea and the international distribution rights for 7 Up.
Some of the non-carbonated beverages under Pepsi’s ownership include Gatorade, Aquafina, Naked Juice, and SodaStream. In snacks and other foods, Pepsi took control of several popular potato chip brands after merging with Frito-Lay in 1965.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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