Corporate profile

The Pepsi Bottling Group quenches the thirst of millions of people each day, providing them with beverages that hydrate, refresh and invigorate. With 70,000 employees and nearly $14 billion in sales, PBG is the world’s largest manufacturer, seller and distributor of Pepsi-Cola beverages, with operations in the United States, Mexico, Canada, Russia, Spain, Turkey and Greece. Four pillars define PBG’s foundation for current and future success: a diverse portfolio of growing markets, a productive partnership with PepsiCo, a stable of strong brands and an advantaged go-to-market strategy.

History

PBG became an independent company in March 1999, when the company launched one of the largest initial public offerings in the history of the New York Stock Exchange. Today, PepsiCo retains an equity interest in PBG of nearly 40 percent.

Business

PBG accounts for more than half the volume of Pepsi-Cola beverages sold in the U.S., the primary focus of this publication. In 2007, approximately 70 percent of that volume was derived from carbonated soft drinks, with the remainder represented by non-carbonated beverages such as purified bottled water, ready-to-drink tea and isotonics.

While PepsiCo is responsible for product development, marketing and advertising, PBG purchases beverage concentrate from PepsiCo to manufacture and then sell, distribute and merchandise its products. PBG’s Direct-Store-Delivery system (DSD) is our key competitive advantage, offering customers a higher level of personalized service to customize delivery, local promotions and service.

Our goal is to help customers grow their business. In the U.S., most of our volume is sold through supermarkets, followed by convenience stores and gas stations. Our products can also be found at restaurants, entertainment complexes, warehouse clubs, retail supercenters and dollar stores.

At the end of 2007 PBG had 44 plants,¹ 250 distribution centers and roughly 35,000 employees in the U.S. Worldwide, the company had 100 plants, 529 distribution centers and 70,000 employees.

Brand portfolio

PBG’s brand portfolio is robust, spanning products for diverse geographies and consumer preferences in the categories of Hydration, Refreshment and Invigoration. In Hydration, we offer the number one water in the U.S. with Aquafina as well as enhanced water with SoBe LifeWater and G2 and Propel isotonics. In Refreshment, we have a solid carbonated soft drink portfolio with our signature Pepsi, Diet Pepsi, Mountain Dew and 7UP brands. We also have the number one ready-to-drink tea with Lipton. Rounding out our portfolio is the Invigoration category which features energy drinks such as AMP by Mountain Dew in the U.S., and our ready-to-drink coffees from Starbucks.

Stakeholders

PBG engages our principal stakeholder groups–shareholders, employees, customers, suppliers and communities–with the goal of developing mutually beneficial relationships. Our shareholders provide required capital and ensure accountability through their voting power (see “Good governance,” in the Governance section.). Because our people drive our success, we strive to provide them with competitive compensation and meaningful benefits, constantly soliciting their input and feedback via formal employee surveys and daily updates with supervisors. Our customers demand that we produce and deliver quality products through responsible supply chain management, and we partner with our suppliers to do just that. And to improve communities, we contribute to the local causes and organizations that our people support and value.

¹Number of plants excludes joint ventures and manufacturing facilities outside the U.S.