PepsiCo 10K SEC report.
The Annual Report on Form 10-k contains reflecting statements that reflect on the views about the future performance that constitute “forward-looking statements” that are within the meaning of the Private Securities Litigation Reform Act of 1995 (Reform Act). The same statements constitute forward-looking statements that are within the meaning of the Reform Act are generally identified through the inclusion of words such as ” aim” “anticipate” “believe” “drive “estimate” and so on. All statements that address the future in the performance operations and comments in the events discussed and developments that we expect or anticipate to occur in the future are mainly forward-looking statements within the meaning of “Reform Act”. Therefore, with the forward based accounts, the current information undergoes through operating plans and many projections about future events, and trends. The company inherently involves risks and uncertainties that cause results that differ materially from those predicted in such forward-looking statements.
PepsiCo was also incorporated in Delaware in 1919 and reincorporated in North Carolina in 1986. PepsiCo is a leading global food and beverage company with a complementary portfolio of brands; these brands include Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana. Through the company’s operations, authorized bottlers, contract manufactures, and other third parties, the market can distribute, as well as sell a wide variety of available beverages, also the foods, and snacks served to customers, and consumers are affected in more than 200 countries, and territories (Baier, 2020). Therefore PepsiCo’s six reportable segments operations include: Frito-Lay North America (FLNA), this consists of the branded food and snacks both in the United States and Canada. Quaker Foods North America (QFNA) includes cereals, rice, pasta, and other ford brands in the United States and Canada businesses.
North America Beverages (NAB) includes the company’s beverages businesses in both the United States and Canada. Latin America, add all the company’s beverages such as food and snack business in Latin America. Europe Sub-Saharan Africa (ESSA) includes drinks, food, and snacks in the industry in Europe and Sub-Saharan Africa and finally, Asia, Middle East and North Africa (AMENA) which also included beverages, meals and snacks. This has generally affected the total assets of the company in that during the year 2017, the total assets as well as the net sales decreased but later increased slightly in the year 2019. The company is motivated to see the growth of PepsiCo. Therefore they have tried as much as possible to incorporate the right attitude and strategies to promote the success of the company (Baier, 2020).
PepsiCo distribution network includes products that are primarily brought to market through direct-store-delivery (DSD), and customers warehouse and distributor networks allow the distribution system used through the dependency on customer needs, product characteristics and local trade practices (Baier, 2020). PepsiCo is independently their bottlers and distributors that operate the DSD systems that deliver beverages through foods, and snacks directly have retail stores that have products that are merchandised by the employees or through independent bottlers. DSD enables the company to provide merchandise with maximum visibility and appeal. DSD is well-suited to allow products that are often restocked and respond to store promotion and merchandising. PepsiCo enables products to be delivered from the manufacturing of plants and warehouse to customer warehouse. These less costly systems work best generally for products that are less fragile, and sometimes perishable, having a lower turnover.
Most products from the company are distributed through third-party distributors. The third-party distributors are active, mainly when greater distribution reach can be achieved by including a wide range of products that allow the delivery to be carried out through vehicles. An example given is through the foodservice and business vending that distributes beverages through foods and snacks to restaurants, shops, and schools, as well as stadiums through the third party foodservice and vending distributors and operators. The products from the company are available as well through the growing number of e-commerce websites, and mobile commerce applications as consumer consumptions patterns develop change through the retail, through the increasing expansion in the online. The principles ingredient used for beverages, food, and snacks; therefore, Most of their products are apples, oranges, and pineapple juice and other concentrated juices (Symes, 2017).
PepsiCo customers include wholesale as well as other distributors who include the foodservice customers, grocery stores, drug stores as well as continence stores. The company grants typically their independent bottlers exclusive contracts that sell, as well as certain manufacture beverages that have products that allow the bearing of trademarks within a specific geographic area. As a result of these arrangements, the provision for charging the independent bottlers provide a concentration of finished goods and Aquafina royalties through the specified manufacturing process required for the quality of products. PepsiCo also grants the distribution of rights of the independent bottlers that provide certain beverages in the product bearing in the trademarks for specified geographic areas. The company offers on financial insensitive to their customers to enable the distribution through assistance in the delivery and promotion of the products to the consumer (Symes, 2017). New products support include the targeted consumers and retailers incentives and direct marketplace support such as point of purchasing materials products placement fees through the media and advertising. Vending and more cooling equipment placement products support the acquisition and placement of vending machines and more cooling equipment. Therefore, the nature and type of programs vary annually.
PepsiCo beverage, food and snacks are highly competitive categories and markets and compete against products that have international drinks, food, and snacks in multiple geographies as well as regional, local. Private label manufactures and economy brands as well as other competitors. Consumers enjoy PepsiCo products in more than 200 countries and territories around the world. PepsiCo is generated from more than $64 billion as from 2018 net revenue driven by the complementary foods and beverage portfolio that include Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The products from PepsiCo’s products through their collection can consist of a wide range of enjoyable foods and beverages, that include the 22 brands that allow the generation of more than $1billion each from their estimated annual retail sales given (Symes, 2017).
At the heart of PepsiCo there is the presence of purposeful performance, and through their fundamental beliefs, that allow the success of the company through the inextricably linked to the sustainability of the world revolving around the company. The company beliefs in continuously improving products that are sold by the company. The company also operates responsibly through the protection of the planet. It enables the empowering of people around the world to allow PepsiCo to run a successful global company that enables the creation of long-term values from society and also with the shareholders. PepsiCo current assets decreased from 2017 to 2018 to 2019. The property plant and equipment net of the PepsiCo property has increased in loss from 2017 to 2018 and from 2018 to 2019. The standard operating cycle of the noncurrent assets also increased from 2017 to 2018 to 2019. Finally, the total assets have decreased from 2017 to 2019, but at the end of 2019, the overall assets increases.
References
Baier, P., Berninger, M., & Kiesel, F. (2020). Environmental, social and governance reporting in annual reports: A textual analysis. Available at SSRN 3206751.
Symes, H., Sharma, U., & Davey, H. (2017). The impact of accounting regulations on annual report length. International Journal of Economics and Accounting, 8(3-4), 275-302.