the soft drink see pepsi . pepsico inc. pepsico s global headquarters building from the donald m. kendall sculpture gardens in purchase new york type public traded as nyse pep s & p 500 component industry beverages food processing founded august 28 1898 ; 118 years ago 1898 08 28 new bern north carolina u.s. founders caleb bradham donald kendall herman lay headquarters purchase new york u.s. area served worldwide key people indra nooyi chairperson and ceo products see list of pepsico products revenue us 63.056 billion 2015 1 operating income us 8.353 billion 2015 1 net income us 5.452 billion 2015 1 total assets us 69.667 billion 2015 1 total equity us 11.923 billion 2015 1 number of employees 263 000 2015 1 subsidiaries list of subsidiaries website pepsico.com pepsico inc. stylized as pepsico is an american multinational food snack and beverage corporation headquartered in purchase new york . pepsico has interests in the manufacturing marketing and distribution of grain based snack foods beverages and other products . pepsico was formed in 1965 with the merger of the pepsi cola company and frito lay inc. pepsico has since expanded from its namesake product pepsi to a broader range of food and beverage brands the largest of which have included an acquisition of tropicana products in 1998 and the quaker oats company in 2001 which added the gatorade brand to its portfolio . as of january 26 2012 22 of pepsico s brands generated retail sales of more than 1 billion apiece 2 and the company s products were distributed across more than 200 countries resulting in annual net revenues of 43.3 billion . based on net revenue pepsico is the second largest food and beverage business in the world . within north america pepsico is the largest food and beverage business by net revenue . indra krishnamurthy nooyi has been the chief executive of pepsico since 2006 . the company s beverage distribution and bottling is conducted by pepsico as well as by licensed bottlers in certain regions . approximately 274 000 employees 3 generated 66.415 billion in revenue as of 2013 . 4 contents 1 history 1.1 origins 1.2 acquisitions and divestments 1.3 competition 2 products and brands 3 business divisions 3.1 north america beverages 3.2 frito lay north america 3.3 quaker foods north america 3.4 latin america 3.5 europe sub saharan africa 3.6 asia middle east and north africa 4 corporate governance 4.1 headquarters 4.2 charitable activities 5 environmental record and product nutrition 5.1 environmental record 5.1.1 rainforests and palm oil 5.1.2 genetically modified food ingredients 5.1.3 water usage india u.s. u.k. 5.1.4 pesticide regulation india 5.1.5 packaging and recycling 5.1.6 energy usage and carbon footprint 5.2 product nutrition 5.2.1 product diversity 5.2.2 ingredient changes 5.2.3 distribution to children 6 see also 7 references 8 external links history edit origins edit the recipe for the soft drink pepsi was first developed in the 1880s by caleb bradham a pharmacist and industrialist from new bern north carolina . he coined the name pepsi cola in 1898 . as the cola developed in popularity he created the pepsi cola company in 1902 and registered a patent for his recipe in 1903 . 5 the pepsi cola company was first incorporated in the state of delaware in 1919 . 6 the company went bankrupt in 1931 and on june 8 of that year the trademark and syrup recipe were purchased by charles guth who owned a syrup manufacturing business in baltimore maryland . guth was also the president of loft incorporated a leading candy manufacturer and he used the company s labs and chemists to reformulate the syrup . he further contracted to stock the soda in loft s large chain of candy shops and restaurants which were known for their soda fountains used loft resources to promote pepsi and moved the soda company to a location close by loft s own facilities in new york city . in 1935 the shareholders of loft sued guth for his 91 % stake of pepsi cola company in the landmark case guth v. loft inc. loft won the suit and on may 29 1941 formally absorbed pepsi into loft which was then re branded as pepsi cola company that same year . loft restaurants and candy stores were spun off at this time . in the early 1960s pepsi cola s product lines expanded with the creation of diet pepsi and purchase of mountain dew . 7 in 1965 the pepsi cola company merged with frito lay inc. to become pepsico inc. . at the time of its foundation pepsico was incorporated in the state of delaware and headquartered in manhattan new york . the company s headquarters were relocated to their present location of purchase new york in 1970 8 and in 1986 pepsico was reincorporated in the state of north carolina . 6 acquisitions and divestments edit between the late 1970s and the mid 1990s 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 1997 selling some and spinning off others into a new company named tricon global restaurants which later became known as yum brands inc. 9 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 . 10 brands formerly owned by pepsico include pizza hut 11 taco bell 11 kfc 11 hot n now 12 east side mario s 13 d angelo sandwich shops 14 chevys fresh mex california pizza kitchen 15 stolichnaya 16 via licensed agreement wilson sporting goods 17 and north american van lines . 18 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 products in 1998 19 and merged with quaker oats company in 2001 20 adding with it the gatorade sports drink line and other quaker oats brands such as chewy granola bars and aunt jemima among others . 21 in august 2009 pepsico made a 7 billion offer to acquire the two largest bottlers of its products in north america pepsi bottling group and pepsiamericas . in 2010 this acquisition was completed resulting in the formation of a new wholly owned subsidiary of pepsico pepsi beverages company . 22 in february 2011 the company made its largest international acquisition by purchasing a two thirds majority stake in wimm bill dann foods a russian food company that produces milk yogurt fruit juices and dairy products . 23 when it acquired the remaining 23 % stake of wimm bill dann foods in october 2011 pepsico became the largest food and beverage company in russia . 24 25 in july 2012 pepsico announced a joint venture with the theo muller group which was named muller quaker dairy . this marked pepsico s first entry into the dairy space in the u.s. 26 competition edit the coca cola company has historically been considered pepsico s primary competitor in the beverage market 27 and in december 2005 pepsico surpassed the coca cola company in market value for the first time in 112 years since both companies began to compete . in 2009 the coca cola company held a higher market share in carbonated soft drink sales within the u.s. 28 in the same year pepsico maintained a higher share of the u.s. refreshment beverage market however reflecting the differences in product lines between the two companies . 28 as a result of mergers acquisitions and partnerships pursued by pepsico in the 1990s and 2000s its business has shifted to include a broader product base including foods snacks and beverages . the majority of pepsico s revenues no longer come from the production and sale of carbonated soft drinks . 29 beverages accounted for less than 50 percent of its total revenue in 2009 . in the same year slightly more than 60 percent of pepsico s beverage sales came from its primary non carbonated brands namely gatorade and tropicana . 28 pepsico s frito lay and quaker oats brands hold a significant share of the u.s. snack food market accounting for approximately 39 percent of u.s. snack food sales in 2009 . 28 one of pepsico s primary competitors in the snack food market overall is kraft foods which in the same year held 11 percent of the u.s. snack market share . 28 other competitors for soda are rc cola cola turka kola real inca kola zamzam cola mecca cola virgin cola parsi cola qibla cola evoca cola corsica cola breizh cola and afri cola . products and brands edit largest pepsico brands based on 2009 retail sales brand pepsi mountain dew lay s potato chips gatorade diet pepsi tropicana beverages 7 up outside u.s. doritos tortilla chips lipton teas pepsico unilever partnership quaker foods and snacks cheetos mirinda ruffles potato chips aquafina bottled water pepsi max tostitos tortilla chips mist twist fritos corn chips walkers potato crisps source 2009 pepsico annual report 30 0 5b 10b 15b 20b pepsico s product mix as of 2015 based on worldwide net revenue consists of 53 percent foods and 47 percent beverages . 31 on a worldwide basis the company s current products lines include several hundred brands that in 2009 were estimated to have generated approximately 108 billion in cumulative annual retail sales . 30 the primary identifier of a food and beverage industry main brand is annual sales over 1 billion . as of 2015 22 pepsico brands met that mark including pepsi mountain dew lay s gatorade tropicana 7 up doritos lipton teas quaker foods cheetos mirinda ruffles aquafina pepsi max tostitos mist twist fritos and walkers . 32 business divisions edit the structure of pepsico s global operations has shifted multiple times in its history as a result of international expansion and as of 2016 it is separated into six main divisions north america beverages frito lay north america quaker foods north america latin america europe sub saharan african and asia middle east and north africa . 33 as of 2015 73 percent of the company s net revenues came from north and south america 17 percent from europe and sub saharan africa and 10 percent from asia the middle east and africa . 31 pepsico and its combined subsidiaries employed approximately 263 000 people worldwide as of december 2015 . 34 north america beverages edit this division contributed 33 percent of pepsico s net revenue as of 2015 31 and involves the manufacture and in some cases licensing marketing and sales of both carbonated and non carbonated beverages in north america . 35 the main brands distributed under this division include pepsi mountain dew gatorade 7 up outside the u.s. tropicana pure premium orange juice mist twst sobe lifewater tropicana juice drinks amp energy naked juice and izze . aquafina the company s bottled water brand is also marketed and licensed through north america beverages . 36 pepsico also has formed partnerships with several beverage brands it does not own in order to distribute or market them with its own brands . 36 as of 2010 its partnerships include starbucks frappuccino doubleshot and iced coffee unilever s lipton brand lipton brisk and lipton iced tea and dole licensed juices and drinks . frito lay north america edit frito lay north america the result of a merger in 1961 between the frito company and the h.w. lay company produces the top selling line of snack foods in the u.s. its main brands in the u.s. canada and mexico and include lay s and ruffles potato chips doritos tortilla chips tostitos tortilla chips and dips cheetos cheese flavored snacks fritos corn chips rold gold pretzels sun chips and cracker jack popcorn