Pbg Annual Report Analysis

Pepsi Bottling Group, Inc., PBG, is most established in the refreshment industry. PBG is the world’s largest manufacturer, seller and distributor of PepsiCo beverages. They have done enough research to know that “when it comes to beverages, consumers crave refreshment. They also crave variety.” Some of the major beverages that PBG markets in the refreshment industry are, of course, Pepsi, Aquafina, Mountain Dew, Sierra Mist, Lipton, Tropican, Starbucks Frappuccino, SoBe, including some only international brands like e-pura and Mirinda in Mexico. Aquafina is the leading national bottled water in the U.S. and a growing brand in Canada and Turkey. Also PBG sales of Pepsi-Cola beverages account for more than one-half of the Pepsi-Cola beverages sold in the United States and Canada and about 40 percent worldwide.

The carbonated soft drink market and the non-carbonated beverage market are highly competitive. PBG competitors in these markets include bottlers and distributors of nationally advertised and marketed products, bottlers and distributors of regionally advertised and marketed products, as well as bottlers of private label soft drinks sold in chain stores. PBG’s market share for carbonated soft drinks sold under trademarks owned by PepsiCo in our U.S. territories ranges from approximately 20% to approximately 38%.

Direct competitors of PBG are Coca-Cola Bottling Co. Consolidated and Coca-Cola Enterprises Inc. Some indirect competitors are Cadbury Schweppes Americas Beverages, Groupe Danone World Water Division, Nestle, and Red Bull.

PBG competes primarily on the basis of advertising and marketing programs to create brand awareness, price and promotions, retail space management, customer service, consumer points of access, new products, packaging innovations and distribution methods. They believe that brand recognition, market place pricing, consumer value, customer service, availability and consumer and customer goodwill are