Companies Owned by PepsiCo

The beverage giant has expanded into snack foods sold around the world

Reviewed by Margaret JamesReviewed by Margaret James

PepsiCo (PEP) is best known for its carbonated soda, Pepsi, and its rivalry with Coca-Cola (KO), but it also owns many well-known snack food and beverage brands through an expansion plan that dates to its 1965 merger with Frito-Lay.

As a global leader in packaged foods, snacks, and beverages, PepsiCo has used acquisitions to expand its core businesses. As of May 2024, PepsiCo posted a market capitalization of $251 billion and a 2023 fiscal year net income of $9.16 billion.

Food accounted for 59% and beverages 41% of the company’s sales, with a net revenue of $91.47 billion in its 2023 fiscal year.

Key Takeaways

• PepsiCo began strategic acquisitions beyond the beverage market in 1965 when it purchased Frito-Lay.
• In 2001, PepsiCo acquired Quaker Oats for $13.8 billion.
• PepsiCo sold Tropicana, Naked, and other juice brands to PAI Partners in 2022 but retains a 39% non-controlling interest.

Recents Pepsi Acquisitions

Relatively recent ventures by PepsiCo include the Sabra Dipping Co., a joint venture with the Strauss Group formed in 2008, and the introduction of Bubly, a flavored sparkling water brand, in 2018.

PepsiCo Beverages North America (PBNA)

This division of PepsiCo includes world-famous brands like Pepsi, Gatorade, Mountain Dew, and Aquafina.

PBNA creates and distributes licensed products from Keurig Dr. Pepper, including Dr. Pepper, Crush, and Schweppes, as well as juices from Dole Food Company, Inc. and Ocean Spray Cranberries, Inc.

It also markets partnership brands including tea variants from Lipton and coffee with Starbucks.

PBNA accounted for 30% of net revenue for PepsiCo in 2023.

In 2022, PepsiCo sold Tropicana, Naked, and other select juice brands to PAI Partners while retaining a 39% non-controlling interest in a newly formed joint venture, Tropicana Brands Group (TBG), operating across North America and Europe.

Frito-Lay North America (FLNA)

Frito-Lay resulted from the 1961 merger between the manufacturer of Fritos corn chips and the snack-food delivery company started by Herman W. Lay. Four years later, the company merged with Pepsi-Cola to form PepsiCo.

Important

The acquisition of Frito-Lay marked Pepsi’s first venture beyond the beverage market.

Frito-Lay has grown dramatically in size to become Pepsi’s biggest profit producer. In fiscal year (FY) 2023, Frito-Lay North America accounted for 47% of operating profit, more than double any other division.

Frito-Lay generates its profit stream from more than 29 snack brands, including Lay’s, Doritos, Cheetos, Fritos, Sun Chips, Tostitos, Cracker Jack, Miss Vickie’s, Rold Gold, Ruffles, and Smartfood.

Quaker Foods North America (QFNA)

The Quaker Oats name is more than 140 years old. Its breakfast cereal was trademarked with the U.S. Patent Office in 1877. The company, then called German Mills American Cereal, would later merge with American oats millers to become the American Cereal Company in 1888 and the Quaker Oats Company in 1901.

In 2001, the company was acquired by Pepsi. The acquisition bolstered Pepsi’s portfolio of food brands with additions including Pearl Milling Co. pancake mix, Cap’n Crunch and Life cereals, and Pasta Roni. Quaker Oats also enriched PepsiCo’s beverage portfolio with the sports drink brand Gatorade.

In 2023, QFNA accounted for about 3.4% of both the net revenue and operating profit of PepsiCo.

Europe

The European sector includes a range of beverages, food, and snack products. Established brands in this market include Lay’s, Doritos, Cheetos, Ruffles, Walkers, and Quaker cereals.

This segment contributed 14.5% to the net revenue for PepsiCo in 2023.

Africa, Middle East, and South Asia (AMESA)

AMESA distributes snack brands like Lay’s, Kurkure, Chipsy, Doritos, and Cheetos as well as beverages including Pepsi, Mirinda, 7UP, Mountain Dew, and Aquafina in Africa, the Middle East, and parts of Asia.

It also markets partnership brands like Lipton iced tea products with Unilever (UL).

This market contributed 7% to operating profit in 2023.

Latin America (LatAm)

The LatAm division distributes beverages, food, and snack products, including major regional brands Toddy, Sabritas, Marias Gamesa, and Emperador.

LatAm accounted for nearly 13% of PepsiCo’s net revenue in 2023.

Asia Pacific, Australia, New Zealand, and China Region (APAC)

APAC manufactures and distributes many of Pepsi’s largest brands, including Cheetos, Doritos, 7UP, Aquafina, and Quaker.

In 2023, APAC accounted for 5% of PepsiCo’s net revenue.

Which Segment, Food or Beverage, Leads PepsiCo’s Net Revenue?

In 2023, food accounted for 59% of net revenue, while beverages accounted for 41%.

Is PepsiCo Committed to Sustainable Agriculture?

PepsiCo says that 90% of the crops like potatoes, whole corn, and oats that it uses in its products are sustainably sourced globally as of 2023.

Is PepsiCo Committed to Recycled Packaging?

PepsiCo set a goal to deliver 20% of its beverages in reusable packaging by 2030.

The Bottom Line

Once a carbonated beverage company, PepsiCo began strategic acquisitions in 1965 when it purchased Frito-Lay. The company operates through seven segments to support well-known snack and beverage brands including Quaker Oats, Lipton, Doritos, and Gatorade.

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