PepsiCo Inc. (NASDAQ: PEP)

PepsiCo isn't really a beverage company u2014 it's a snack company that also sells drinks. Frito-Lay North America (Lay's, Doritos, Cheetos, Tostitos) generates more operating profit than the entire beverage division. The company also owns Quaker Oats, Gatorade, Tropicana (sold in 2022), and a portfolio of beverages sold in 200+ countries. Annual revenue exceeds $91 billion.

PepsiCo sells branded food and beverages through retail channels, convenience stores, and foodservice. Frito-Lay's salty snack dominance (over 60% US market share) provides extraordinary pricing power. The beverage business competes with Coca-Cola but is less profitable. International markets account for about 40% of revenue and are the primary growth driver.

Caleb Bradham invented Pepsi-Cola in 1893 in New Bern, North Carolina. The company merged with Frito-Lay in 1965 to form PepsiCo. The "Pepsi Challenge" blind taste tests in the 1970s were a marketing masterstroke. PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell, KFC) as Tricon (now Yum Brands) in 1997. The Quaker Oats acquisition in 2001 for $13.4 billion brought Gatorade into the fold.