Past emerging trends A History of PepsiCo

1965

PepsiCo, Inc. is founded by Donald M. Kendall, president and chief executive

officer of Pepsi-Cola and Herman W. Lay

The new company reports sales of $510 million and has 19,000
employees.Major products of the new companies are: Pepsi-Cola Company -
Pepsi-Cola (formulated in 1898),Diet Pepsi (1964) and Mountain Dew
(introduced by Tip orporation in 1948). Frito-Lay, Inc. - Fritos brand corn chips
(created by Elmer Doolin in 1932), Lay's brand potato chips (created by
Herman W. Lay in 1938), Chee-otos brand cheese flavored snacks (1948),
Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired
1961). Mountain Dew launches its first campaign "Yahoo Mountain Dew it’ll
tickle your innards."

1966:
Pepsi enters Japan and Eastern Europe.
1967:

Pepsi Generation advertising, "Come Alive! You're in the Pepsi Generation" campaign that
named and claimed a whole generation (1963-67 ), introduces a new theme: "Taste that beats
the others cold. Pepsi pours it on!".

1969

Bold, modern Pepsi-Cola packaging using red, white and blue is introduced. "You've got a lot to live, Pepsi's got
a lot to give," becomes the advertising theme.

1970

Pepsi introduces the industry's first two-liter bottle.

Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic
bottles.

1973

Individualism flourishes, Pepsi advertising picks up on the movement, plays it back as "Join the
Pepsi people, feelin' free."

1974

PepsiCo sales pass the $2 billion mark.

Pepsi-Cola becomes the first American consumer product to be produced, marketed and sold in
the former Soviet Union.

1975
Pepsi Light, with a distinctive lemon taste, is introduced as an alternative to traditional diet
colas.

1976

The Pepsi Challenge, introduced in 1975, becomes a international campaign. Around the nations, consumers
select Pepsi-Cola as the best tasting cola.

PepsiCo adopts Code of Worldwide Business Conduct. Pepsi-Cola becomes the single largest
selling soft drink brand sold in U.S. supermarkets.

Advertising campaign is "Have a Pepsi day!" one of best-loved ads.

1977

PepsiCo acquires Pizza Hut, Inc. Pizza Hut was found in 1958 by Dan and Frank Carney. It is
spun off along with Taco Bell and KFC businesses as Tricon Global Restaurants, Inc. in 1997.

PepsiCo passes the $3 billion mark in sales.

1978

Taco Bell is acquired. Taco Bell was established in the mid 1960s by Glen Bell. It is spun off
along with Pizza Hut and KFC businesses as Tricon Global Restaurants, Inc. in 1997.

1979

PepsiCo reaches $5 billion in sales.

Pepsi's new campaign, "Catch that Pepsi Spirit!" reflects the upbeat attitude of an increasingly
positive America.

Pepsi introduces twelve-pack cans.

1982

Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced. Inauguration of the first
Pepsi-Cola operation in China.

1984

PepsiCo is restructured to focus on its three core businesses: soft drinks, snack foods and
restaurants. Transportation and sporting goods businesses are sold.

Slice and Diet Slice, the first major soft drinks with fruit juice, are introduced.

Pepsi-Cola makes advertising history as Michael Jackson and his brothers usher in a new
generation of Pepsi-Cola advertising in two of the most eagerly-awaited television commercials
featuring music marketing. Pepsi becomes "The Choice of a New Generation."

1985
PepsiCo is now the largest company in the beverage industry. The company has revenues of
more than $7.5 billion, more than 137,000 employees.

Pepsi-Cola products are available in nearly 150 countries and territories around the world.
Snack food operations are in 10 international markets.

The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested
aboard the space shuttle.

Pepsi's successful "Entertainment Marketing" strategy is extended, with singers Lionel Richie
and Tina Turner, and actor Michael J. Fox, among others.

Pepsi distributes products in China.

1986

PepsiCo purchases Kentucky Fried Chicken, the leader in the quick service chicken market.
KFC was founded by Colonel Harland Sanders. Colonel Sanders perfected his secret blend of
11 herbs and spices in 1939; he began franchising the company in 1952. KFC is spun off along
with Pizza Hut and Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997.

PepsiCo purchases 7-Up International, the third largest franchise soft drink operation outside
the United States.

PepsiCo passes $10 billion in sales.

PepsiCo is listed on the Tokyo stock exchange.

Pepsi becomes a major a sponsor of the "Goodwill Games," a world-class sports festival
matching American and Russian athletes for the first time since 1976 Olympics.

Michael Jackson is signed to a second contract to appear in Pepsi advertising, this time as a solo
performer. Diet Pepsi's "Apartment 10G," starring Michael J. Fox, is the commercial of the
year, and an instant classic.

1987

Pepsi sponsors tours of major music stars, including Miami Sound Machine, David Bowie and
Tina Turner.

1988

Pepsi-Cola Company is reorganized along geographic lines, East, West, South and Central
regions, each with its own president and senior management staff.

Pepsi-Cola International enters a landmark joint venture agreement in India. Renewed accord
with the Soviet Union extends PepsiCo trade relationships. Hostess Frito-Lay, a major
new partnership in Canada is formed with Hostess Foods in Canada. "Chase," a four-part Pepsi
ad featuring Michael Jackson, his first-ever episodic commercial. It airs during the Grammy
awards and becomes the most-watched commercial in advertising history.

Pepsi and Michael Jackson raise $600,000 with a special New York City concert benefiting the
United Negro College Fund.

1989
PepsiCo named one of Fortune Magazines top 10 "Most Admired Corporations."

1990

PepsiCo enters top 25 of Fortune 500 ranking, with sales of $15.4 billion it is number 23. The
company has more than 300,000 employees.

PepsiCo named one of Fortune Magazine's top 10 "Most Admired Corporations" for the second
year in a row.

Popular teen stars Fred Savage and Kirk Cameron appear in Pepsi advertising, while Ray
Charles, joins Diet Pepsi vets Billy Crystal and Michael J. Fox in "The Right Ones" campaign.
During the Super Bowl, star quarterback Joe Montana offers a special taste
challenge to celebrities appearing in competitive commercials.

1991

Profits exceed $1 billion for the first time.

PepsiCo named one of Fortune Magazine's top 10 "Most Admired Corporations" for the third
year in a row.

Pepsi-Cola introduces a new logo, its eighth in 93 years.

Advertising features rap singer MC Hammer.

Pepsi-Cola forms joint venture with Thomas J. Lipton Co. to develop and market tea-based
drinks.

Ray Charles teams up with the Uh-Huh Girls. The slogan for Diet Pepsi is modified to "You
Got The Right One Baby Uh-Huh."

1992

PepsiCo named one of Fortune Magazine's top 10 "Most Admired Corporations" for the fourth
year in a row.

Pepsi-Cola introduces new "Gotta Have It" advertising theme and launches the "Gotta Have It"
card.

1993

Pepsi introduces new slogan "Be Young - Have Fun – Drink Pepsi."

Pepsi-Cola begins distribution of Lipton's line of ready-to-drink teas nationwide.

TWA, Northwest Airlines offer Pepsi-Cola.

After a 27-year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon
sign in Times Square.

Both PepsiCo beverages and snack food operating profits pass the $1 billion mark.

Pepsi introduces "The Cube," an innovative 24-can multipack that satisfies growing consumer
demand for convenient large size soft drink packaging.
Pepsi-Cola International introduces Pepsi Max, a soft drink with unique blend of sweeteners
that delivers maximum cola taste in a no-sugar product.

1994

Pepsi-Cola International expands Pepsi Max in Europe, Latin America and Asia.

Pepsi-Cola is first major soft drink maker to begin producing and distributing its product in
Vietnam.

Pepsi-Cola launches its sports drink All Sport and a national advertising campaign with
Shaquille O'Neal of the Orlando Magic.

Pepsi-Cola International acquires Indian company, its first big bottling plant in Bombay.

1995

PepsiCo sales reach $30.4 billion. There are 470,000 employees worldwide, making PepsiCo
the third largest employer.

Pepsi-Cola introduces "Nothing else is a Pepsi" themeline.

Pepsi-Cola is top ad scorer in SuperBowl. Mountain Dew sponsors the Grammy Awards.
Themeline is "Been There, Done That, Tried That." The Pepsi Lipton Tea Partnership debuts
new ad campaign emphasizing "There's only one Original."Pepsi-Cola introduces Smooth Moos Smoothies, a
line of low-fat dairy shakes.

7UP launches 7UP Ice Cola, a new clear cola.

1996

Pepsi-Cola launches its first World Wide Web site called Pepsi World at http://www.pepsi.com.

"Pepsi Stuff" unveiled. Consumers save points for merchandise.

PepsiCo, Inc. and Lucasfilm Ltd. announce the largest promotional alliance in entertainment
history, linking existing and future Star Wars series with PepsiCo beverage, snack foods and
restaurant brands worldwide.

Pepsi-Cola and MTV establish a partnership to develop international programming, cross

promotions, marketing tie-ins and special events.

Filming of the world's first commercial in space. Cosmonauts shoot a large blue Pepsi can in
orbit outside the MIR Space station.

Pepsi-Cola is exclusive soft drink supplier to Canadian Airlines with Pepsi at Marriott Hotels as
well.

1997

In January PepsiCo announces plans to spin off its restaurant businesses as an independent
publicly-traded company, sell its food distribution company and focus on its core beverage and
snack food businesses. The spin-off is completed October 6, 1997. Shareholders will receive
one share in the new restaurant company, Tricon Global Restaurants, Inc., for every 10 shares
they hold in PepsiCo, Inc.
PepsiCo is now a $20 billion company with approximately 140,000 employees worldwide.

Pepsi-Cola Co. signed up as national sponsor of Major League Baseball.