S.A. it had third of the U.S $ 47 billion soft drink market. At this point, PepsiCo wanted to enter into a full beverage business and in 1992, it partnered up with Thomas J. Lipton Company to bring Lipton’s ready to drink teas, some of them being flavoured. PepsiCo later on challenged ‘Gatorade’ in sports’ drinks with their ‘All Sport’ drink. It also ventured into water production with ‘H2Oh!’ as their product name.
Through agreements, Pepsi-Cola entered the natural fruit and still-water markets using Ocean spray and Avalon, though their major role was to distribute these products. PepsiCo’s aim is to have their products in their consumers’ reach. They were targeting new areas such as schools, food service stations, as well as airlines (Annual Report pg 7).
Pepsi-Cola was now in a position to acquire international companies. The first one was Seven-Up. Seven-Up was the third largest soft drink company, that was not based in the U.S. it was acquired in 1986.in 1992, the company had strengthened its international business through acquisitions valued at half a billion dollars (Ibid p8). Calloway believed that the best area for expanding the company’s beverage business was to venture into international markets. . An Outlook on the History of Pepsi Corporation and Its Subsidiaries.
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