1. Acquired Tropicana Products from Seagram Company Ltd. (1998)
World’s largest branded juice company, an outstanding consumer packaged goods business, has high consumer loyalty.
Helped PepsiCo expand to mornings and to people who may not consume carbonated soft drinks, including young children.
Very profitable brand which grew at a compounded annual rate of more than 7% over the past five years at that time.
With an acquisition of Tropicana, the return on invested capital was about 16%, a marked improvement from PepsiCo’s average in the past three years.
2. Mergers with The Quaker Oats Company (2001)
The nation’s number one choice for a nutritious, hot breakfast cereal, Gatorade
Expanded PepsiCo’s broker-warehouse distribution capability by adding large an efficient warehouse system which also took Tropicana products into many more stores at a lower cost.
3. Acquired The Pepsi Bottling Group Inc., and PepsiAmericas Inc. (Feb, 2010)
Two largest anchor bottlers
The investment in PBG and PAS included the related goodwill
In 2010, PepsiCo recorded a gain on previously held equity interests of $958 million
According to the Annual Report 2010, Net revenue of PepsiCo Americas Beverage (PAB) was $20,401. In 2009, the net revenue was $10,116. Volume increased 10% and acquisitions of PBG and PAS contributed over 5% points to volume growth. Operating profit also increased 28%, reflecting the incremental operating results from the…