Company Overview

Pepsi perennially battles Coca-Cola for the top spot in the beverages category; the companies are virtually identical in size. But Pepsi seems to be ahead in terms of top brands in a variety of beverage categories other than cola; Tropicana, owned by PepsiCo, is the number one orange juice brand. But the majority of the company’s sales don’t come from its beverages: Pepsi has successfully diversified into foods via its Frito-Lay subsidiary, the number one snack maker that now contributes one-third of the company’s revenue.

In 2004, PepsiCo approached Ocean Spray, makers of cranberry juice, about a joint venture but was rebuffed by cranberry farmers. The company then bought General Mills’ stake in Snack Ventures Europe in 2005, gaining control of Europe’s largest snack food company. And in 2008, PepsiCo and Pepsi Bottling Group sought to expand their global offerings by agreeing to acquire Russian juice maker, JSC Lebedyansky, for approximately $1.4 billion. Lebedyansky is the top player in Russia’s juice market (expected to double in revenue over the next decade) and the world's sixth largest juice maker, boasting sales of more than $800 million in 2007. The deal would result in Pepsi owning 75-percent of the company, with the remaining share going to PBG.