PepsiCo, Inc. Engages in Ambitious R&D to Remain as One of the Top Consumer Product Companies in the World

PepsiCo owns three of the world’s most popular consumer brands. Pepsi-Cola Company still holds the record as the second largest soft drink producer in the world. It owns 21% of the world’s market share for carbonated drinks. Frito-Lay Company, PepsiCo’s division devoted to salty snacks, holds 40% of the world’s market.  PepsiCo’s third division Tropicana Products Inc. owns 41% of the world’s market share in juice sales to remain the leader in the industry.

To date, PepsiCo owns more than 26 brands which contribute to the company’s $500 million of sales annually. The figure is expected to increase as PepsiCo now owns Quaker Oats Company, owner of brands such as Gatorade, Quaker Oatmeal, Life, Cap ‘n Crunch, and other cereal brands.

The company’s humble beginning started with Doc Bradham’s concoction that created his popular soda Pepsi-Cola. Formerly known as Brad’s Drink, Bradham’s bottled soda became very saleable that he has to close his drugstore to concentrate on his newfound fortune. In 1903, Bradham patented the trademark of Pepsi-Cola.

Bradham’s company went bankrupt after the World War I. A banker named Roy Magargel purchased Pepsi-Cola including the rights to the concoction’s formula. The acquisition led to reorganization and a change in name to Pepsi-Cola Company. The company did not recover from its financial difficulties and Magargel was forced to sell 80% of the company to Charles Guth, owner of Loft, Inc. Guth made little modifications to the concoction’s formula and reintroduced the soda with the shortened name “Pepsi.”

Guth was responsible for the international operations of the company. Several offices were established outside the US including Pepsi-Cola Company of Canada, Compania Pepsi-Cola de Cuba in Cuba, and Pepsi-Cola Ltd. of London.

In 1940, the company went public and was listed on the New York Stock Exchange. Pepsi-Cola began to sell the soda in cans. Vending machines started to sell Pepsi in almost every corner of the major cities in the US.

The company continued to thrive through the World War I. After the war, profits were reported at $14.5 million per year. The rising earnings were attributed to intense advertising and innovations in product packaging.

Several new products were introduced including Mountain Dew which was acquired from Tip Corporation. Pepsi-Cola also introduced the soda in one-and-a-half liter bottles.

In 1965, the company expanded to non-softdrink products by acquiring Frito-Lay. In 1970, Pepsi-Cola also acquired Taco Bell and Pizza Hut and became major outlets of Pepsi products.

In the early 1980s, Pepsi introduced Diet Pepsi which is a reformulated soda. Burger King also began selling Pepsi products to their customers.

The company also purchased Kentucky Fried Chicken in 1986 and Hot ‘n Now hamburger chain in 1990. Through the 1990s, PepsiCo purchased other restaurants like California Pizza Chicken. In 1998, PepsiCo purchased Tropicana in its effort to compete with its nearest rival Coca-Cola. In the early 21^st century, PepsiCo also acquired giant Quaker Oats Company, owner of the Gatorade brand.