Beverage News

Bottling acquisitions spur PepsiCo growth

July 21, 2010
/ Print / Reprints /
/ Text Size+

Aided by the acquisition of its largest bottlers, Purchase, N.Y.-based PepsiCo Inc.’s PepsiCo Americas Beverages division reported 13 percent volume growth, a 112 percent spike in net revenue and a 54 percent increase in operating profit in the second quarter of 2010. In North America, excluding the incremental volume from its agreement with Dr Pepper Snapple Group, volume declined 1 percent – a 4.5 point sequential improvement versus the first quarter of 2010.

The launch of Gatorade’s G Series line of sports drinks and Lipton’s ready-to-drink teas helped improve the company’s organic volume growth, but softness in the carbonated soft drink category and the company’s focus on growing bottled water stymied volume growth, the company said.

Across all food and beverage categories, PepsiCo saw net revenue grow by 40 percent and operating profits increase by 19 percent, it said.

"We are benefiting from both the acquisition of our anchor bottlers earlier this year and from improving trends across our global business,” said Hugh Johnston, PepsiCo’s chief financial officer, in a statement. “As planned, we have stepped up incremental investments around the world to capitalize on untapped consumer demand, including investments in marketplace infrastructure to support both our expanding China beverage business and innovation across our global snacks portfolio.  We remain confident in our ability to meet our full-year core constant currency EPS target of 11 to 13 percent."

PepsiCo will target about $400 million in pre-tax annual synergies from its bottling acquisitions, which it expects to fully implement by 2012, but a one-time cost of $650 million will be required, the company said. In 2010, the company expects to realize $125 million to $150 million in synergies.

 Did you enjoy this article? Click here to subscribe to Beverage Industry.  

You must login or register in order to post a comment.



Image Galleries

Wine Riot - Chicago

Second Glass hosted Wine Riot in Chicago on May 2 and 3. Wine Riot offered attendees an all-access pass to hundreds of new wines as well as multiple educational sessions about different wine styles and varietals. (Photos by Jennifer Haderspeck)

6/25/14 2:00 pm EDT

Crafting growth: A look into the bourgeoning craft beer market

Learn how the beer segment is performing and where it is heading, what to consider before expanding your markets and innovations that are captivating consumer audiences.


Maintaining beverage dispensing equipment

Iuliana Nita, Saint-Gobain Performance Plastics global marketing manager of food and beverage, offers her insights about ensuring sanitary performance of beverage dispensing equipment in foodservice applications. She also will offer some tips about choosing the right kind of tubing to handle acidic beverages.

Beverage Industry Magazine

BI July 2014 cover

2014 July

The July 2014 Beverage Industry includes a cover story on the 2014 State of the Industry, as well as articles about PepsiCo Americas Beverages, Rooibee Red Tea kids line, and more. Check it out today!

Table Of Contents Subscribe

Beverage Insider eNewsletter

Are you an Insider? Subscribe to Beverage Industry’s weekly e-newsletter to receive news headlines, new product information and magazine highlights.   

Best Beverage Categories

Which beverage category will perform the best in the second half of 2014?
View Results Poll Archive


Cleaning-in-Place: Dairy, Food and Beverage Operations, 3rd Edition

This book addresses the principles of cleaning operations, water supply issues and the science of detergents and disinfectants.

More Products


Beverage Industry Webinars are an easy, effective and convenient way to get educated and informed on the latest industry trends and topics. All Webinars are FREE unless indicated. For more information, check out our Events page!


facebook40 twitter    youtubelinkedgoogle+ icon 40px