PepsiCo

Business in Russia and Ukraine

• PepsiCo Russia
• PepsiCo Ukraine

Pepsi was the first Western product to go on sale in the USSR.

The acquisition of Lebedyansky in 2008 and the purchase in 2011 of Wimm-Bill-Dann, a company specializing in juices, dairy products and baby food, made PepsiCo the leader in the production of food and drinks in Russia and the CIS.

History and Performance Indicators

2023: Employee Data Breach Admission, Cyber Attack Details

In mid-February 2023, it became known that Pepsi was the victim of a data breach. Cybercriminals invaded the corporate network, during which they managed to install malware, which caused the data leak.

Pepsi acknowledged that the stolen information includes full name, home address, financial account information (including passwords, PINs, and access numbers), state and federal identification numbers, and driver's license numbers, IDs, Social Security numbers, passport details, digital signatures, and information related to benefits and employment (health insurance claims and medical history).

Pepsi Products

On February 10, 2023, Pepsi information security specialists discovered that unauthorized activity was reported on some internal IT systems. In a preliminary investigation, an unknown party gained access to these systems on or about December 23, 2022, installed malicious and ON downloaded certain information contained in available IT systems. The last known date for unauthorized access to the IT system was January 19, 2023.

Pepsi filed a data breach notice with the Montana Attorney General in the U.S. on Feb. 10, 2023, after discovering that a threat actor had accessed confidential information from certain current and former employees of the sugary beverage maker.

Stolen personal information can be used for identity theft, financial fraud, misuse of health information and social engineering attacks. However, the February 2023 incident report did not list the number of employees, suppliers or customers whose personal information was stolen. After the incident, the company suspended all affected systems and reset all company passwords.^[1]

2022

Two sodas a day raise risk of obesity-related cancer death

On September 15, 2022, a study was published, according to which people who drink two or more servings of sugar-sweetened drinks (PSN) per day are more likely to die from cancer caused by obesity, including cancers of the gastrointestinal tract, kidneys, postmenopausal breast and endometrium. Read more here.

For the quarter lost $1.17 billion due to the curtailment of business in Russia

PepsiCo lost almost $1.17 billion in the second financial quarter due to the curtailment of business in Russia. In particular, the cost of impairment of intangible assets (juice and dairy brands on the Russian market) for the 12 weeks ended June 11, 2022 amounted to $1.197 billion. The American producer of carbonated drinks announced this in July 2022.

PepsiCo also clarified that the sale of snacks and drinks in Russia fell by double-digit in relation to the first financial quarter. The report notes that Russian business accounts for 4% of PepsiCo's global revenue and asset value.

PepsiCo lost $1.17 billion in the quarter due to the curtailment of business in Russia

Against the background of the costs that PepsiCo incurred in connection with the consequences of Russia's military special operation in Ukraine, the company's quarterly operating profit decreased by 34% on an annualized basis, to $2.08 billion. At the same time, revenue increased - by 5%, to $20.23 billion.

By mid-July 2022, the company is in the process of suspending sales of these brands, the rest of the products will continue to enter the Russian market, PepsiCo reports.

In early March 2022, PepsiCo announced the suspension of the capex program, advertising and promotional activity in the Russian market. In addition, the company decided to stop selling the Pepsi-Cola brand and other global flagship brands in the Russian Federation. At the same time, PepsiCo continues and plans to continue to sell some of its products in Russia. The company owns such brands as: Agusha, House in the Village, Favorite and J7 juices, Lipton drinks, Russian Gift, and so on.

At the end of April 2022, PepsiCo informed its investors that due to the situation in Ukraine, the company lost about $241 million as a result of a decrease in the value of its brands and another $241 million due to the forced write-off of the amounts due to receipt and a decrease in the value of inventory.^[2]

2020: Among the world leaders in pollution of the environment with plastic packaging

Data on the release of plastic packaging in metric tons per year, as of 2020

2013: Revenue of $65 billion and almost 300 thousand employees

PepsiCo reported revenue of $65 billion in 2013. The retail sales of each of PepsiCo's 22 billionaire brands exceed a billion dollars a year. The company is represented in 200 countries of the world, it employs about 300 thousand people.

2011: Turnover of $60 billion and 285 thousand employees

For 2011, PepsiCo has an annual turnover of over $60 billion and more than 285,000 employees working in 215 countries - the world's second largest producer of food and drinks.

In addition to Pepsi-Cola, Diet Pepsi, Mirinda, Mountain Dew, Tropicana juices, Aqua Minerale waters known to each, PepsiCo's product line includes various snacks - Lay's, Cheetos, Quaker Oats, Doritos and many others. The company's oldest brand, Pepsi-Cola, has been on the market for more than 110 years. PepsiCo's 19 megabrands provide over a billion dollars in retail revenue each year.

Company brands on the market leaders map for the mid-2010s

2010: Joining bottlers Pepsi Bottling Group and Pepsi Americas

In 2010, the company was joined by the largest bottlers (Pepsi Bottling Group and Pepsi Americas), which allowed PepsiCo to become the second largest food and beverage company in the world.

2001: Takeover of porridge maker Quaker Oats

In 2001, PepsiCo acquired porridge and cereal company Quaker Oats, along with its sports beverage division Gatorade.

1998: Takeover of U.S. largest juice producer Tropicana

In 1998, PepsiCo acquired Tropicana, the largest natural juice producer in the United States.

1996

A Concorde aircraft bearing the Pepsi logo during his promotional refueling tour, 1996, Dubai.

1986: Takeover of 7-Up International and Mug Root Beer

By 1986, the third largest producer of soft drinks, 7-Up International, and later Mug Root Beer, were added to the corporation.

1978

Pyramid and Pepsi, 1970s.

1970: Sales exceeded $1 billion

In 1970, PepsiCo's sales passed the $1 billion mark.

Pepsi became the first fizzy drink to be advertised in outer space.

1965: Merging with chip maker Frito-Lay and renaming to PepsiCo

In 1961, the Lay Company and the Frito Company, which had worked closely together for the past 16 years, decided to create a combined Frito-Lay Company, which later became the leader in the American snack market. The company was created by the merger of two well-known companies: Fritos, created by Elmer Doolin in 1932, and Lay's, founded by Herman W. Lay in 1938. Fritos made popular corn chips, while Lay's specialized in potato chips.

Frito-Lay opened the first research laboratory, whose employees carefully monitored the quality of production and developed new products.

The historic merger of The Pepsi-Cola Company and salt snack maker Frito-Lay took place in 1965 - this is how the modern PepsiCo company was born. The key role in the merger of the two companies was played at that time by the vice president of the company, Don (Donald) Kendall, who, by the way, owns the idea of ​ ​ deploying the company's business in the USSR.

The Pepsi-Cola Company is the first large company where an African American (1960s) became vice president. The Pepsi-Cola Company became the first company to advertise together as white, African, and Latino.

1956: Production at 149 plants in 61 countries. The first big company with a woman on the board

By 1956, Pepsi is manufactured at 149 plants in 61 countries.

The Pepsi-Cola Company became the first large company where a woman appeared on the board of directors (1950s).

The Pepsi-Cola Company was the first to hire African Americans as specialists (1940s).

1946: "Be Outgoing - Drink Pepsi" campaign

After World War II, the company headed to improve the brand's image: a new bottle, a new logo and a new slogan "Be sociable - drink Pepsi" appeared. It was the first step in the campaign's most famous, longest-running and largest-ever ad, Pepsi Generation.

1931: Bankruptcy of the company. Assets go to Charles Aktivs

The new owner failed to put the company on its feet, and in 1931 he declared it bankrupt. The next owner of the assets was Charles Gut, president of the confectionery corporation Loft Candy. From that moment, the company's affairs finally went up.

Gut decided to launch a bold attack on the market position of the main competitor, Coca-Cola. At the time, both drinks were sold in vending machines - 5 cents a 6-ounce bottle. Gut decided to sell Pepsi in 12-ounce bottles - for the same price. This idea was a great success against the backdrop of the great depression, when US residents were ready to save every cent. Coca-Cola could not answer the competitor's move: the company needed to sell a billion-dollar supply of bottles of 6 ounces, and it was not possible to reduce the price of the bottle - the machines accepted only coins of 5 cents. From that moment began the rise of The Pepsi Cola Company in the American and world markets.

1923: Bradham sells company

Bredham's continued success was hampered by World War I. In 1923, Bradham was forced to sell the company.

1908: Switching from carts to cars

In 1908, The Pepsi-Cola Company became one of the first companies to switch from horse-drawn carts to cars.

1902: Founding of The Pepsi-Cola Company

In 1902, The Pepsi-Cola Company was born.

1898: Apothecary Caleb Bradham invents cola nut drink

The history of PepsiCo began in the 19th century. In August 1898, Caleb Bradham, the owner of a small pharmacy in New Bern, North Carolina, came up with a recipe for a refreshing drink of cola and vanilla nuts, which was called Pepsi-Cola and was sold as tonic, refreshing and digestive.