preview

History And History: A Case Study Of Pepsico

Satisfactory Essays

1985:
• The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the space shuttle.
• PepsiCo is now the largest company in the beverage industry and its products are available in nearly 150 countries and territories.
• Pepsi distributes products in China.
1986:
PepsiCo is listed on the Tokyo stock exchange.
• Pepsi-Cola acquires Mug Root Beer.
• PepsiCo purchases Kentucky Fried Chicken (KFC).
KFC’s outlets served Coke products, and it was 2nd largest fountain account for Coke. This move would make PepsiCo take over the 1800 KFC owned restaurants and to switch to PepsiCo’s products. PepsiCo stressed that the major reason for the acquisition was to expand its restaurant business, which last year …show more content…

1989:
• PepsiCo acquires Walkers Crisps and Smith Crisps, two of the United Kingdom's leading snack food companies.
This acquisition was part of a strategy to broaden its international sales of snack foods. Domestic and international sales of snack food made up 27 percent of the company's net sales, and 43 percent of operating profits, in 1988.
Pepsico said Walkers and Smiths would help it establish a solid European base in 1992, when trade barriers between European Community countries will be dissolved.
Walkers Crisps was the market leader for potato chips in Britain, with about a one-third market share, while Smiths Crisps was the leader in the market for ''extruded snacks,'' like wheat puffs, with about a third of the market.
• PepsiCo enters the top 25 of the Fortune 500 ranking.
1990:
• PepsiCo acquires a controlling interest in Gamesa, Mexico's largest cookie company.
Pepsico had spent $300 million to buy a controlling interest in Mexico's largest cookie maker and would spend another $200 million to create a larger snack-food company in …show more content…

. . to see if they can rejuvenate a very aged brand," said Robinson-Humphrey Co. analyst David Goldman. He said Pepsi probably didn't have to pay more than $50 million for Cracker Jack.
• Aquafina bottled water is rolled-out nationally.
• PepsiCo spins off Kentucky Fried Chicken, Pizza Hut and Taco Bell as Tricon Global Restaurants, Inc.
PepsiCo expanded via acquisition of businesses outside of its core focus of packaged food and beverage brands, however it exited these non-core business lines largely in this year, selling some, and separating others into a new company named Tricon Global Restaurants, which later became known as Yum! Brands, Inc. PepsiCo also previously owned several other brands that it later sold so it could focus on its primary snack food and beverage lines, according to investment analysts reporting on the divestments in 1997.
1998:
• PepsiCo acquires Tropicana Products from Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo.
The divestments concluding in 1997 were followed by multiple large-scale acquisitions, as PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo purchased the orange juice company Tropicana

Get Access