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Pepsi Global Sales

PepsiCo International Snack & Beverage Sales Up 9% In 2006

© Daniel Workman

Pepsi Thailand, morguefile.com reference id 45463
International operations continue to be Pepsi's growth engine, increasing revenues at about twice the rate of Pepsi sales in Canada and the United States.

PepsiCo International generated US$13 billion, which represents 37% of the firm's total revenues in 2006. Snack and beverage sales from Canada and the United States accounted for the remainder of PepsiCo's overall revenues.

In contrast, 72% of Coca-Cola's global beverages are sold outside North America.

PepsiCo International Brands

PepsiCo International makes salty and sweet snack brands including Lay’s, Walkers, Cheetos, Doritos, Ruffles, Gamesa and Sabritas. PepsiCo also markets Quaker brand snacks.

Beverage brands include Pepsi, 7UP, Mirinda, Gatorade, Tropicana and Mountain Dew which are sold to authorized bottlers, independent distributors and retailers. PepsiCo also owns the Aquafina water brand.

PepsiCo's international division operates in approximately 200 countries, with largest operations in Mexico (Gamesa and Sabritas snack brands) and the United Kingdom (Walkers snack brand).

2007 International PepsiCo Snack Sales

Overall international snack sales rose 9%, led by double-digit growth in Russia, Turkey, Egypt and India. Sales from Europe, the Middle East and Africa grew 17%, Asia Pacific sales rose 12% while Latin America revenues lagged at 2.5%.

2007 International PepsiCo Beverage Sales

Overall international beverage sales grew 9%. In the Middle East, China, Argentina, Russia and Venezuela PepsiCo drinks enjoyed double-digit growth.

PepsiCo's International Growth Engine

The portfolio of international markets continues to broaden and strengthen as PepsiCo deliver exciting new products, tailored to local tastes, to consumers in approximately 200 countries. And in developing and emerging markets in particular, growth in per capita GDP levels continues to generate increased demand for the world's number two soft-drink maker.

PepsiCo's continued success depends on its ability to broaden and strengthen its presence in emerging markets notably Brazil, Russia, India and China. Investment analysts believe that PepsiCo's near-term results may be affected by sluggish sales in Europe. However, most agree that PepsiCo's stock price (PEP on NYSE) should rise as Pepsi snacks and beverages win over more consumers in developing nations.

PepsiCo's International Acquisitions

Part of PepsiCo's global strategy is growth through acquisition. The company acquired Duyvis nuts in the Netherlands and Star Foods snacks in Poland during 2006, as well as Bluebird snacks in New Zealand in early 2007.

Sources: PepsiCo's Annual 2006 SEC Filing; hoovers.com


The copyright of the article Pepsi Global Sales in International Trade Leaders is owned by Daniel Workman. Permission to republish Pepsi Global Sales in print or online must be granted by the author in writing.





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