What it does
PepsiCo states that it makes, markets, distributes and sells beverages and convenient foods through its own operations, authorized bottlers, contract manufacturers and other third parties. Its portfolio includes brands such as Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. The filing describes six reportable segments spanning North American food and beverages, international beverage franchising, EMEA, Latin American foods and Asia Pacific foods. Products reach market through direct-store-delivery, customer warehouses, distributor networks and e-commerce channels.
Source: PepsiCo, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company states that its food businesses make, market, distribute and sell convenient foods, while its beverage businesses sell beverage concentrates, fountain syrups and finished goods. PBNA sells branded finished goods directly to independent distributors and retailers, as well as concentrate and finished goods to authorized and independent bottlers in certain markets. IB Franchise sells beverage concentrates to authorized and independent bottlers. The filing also describes sales through company-owned bottling and distribution facilities, joint ventures, third-party distributors, retailers and direct-to-consumer e-commerce platforms.
Source: PepsiCo, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The filing lists customers including wholesale and other distributors, foodservice customers, grocery, drug and convenience stores, discount and dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers. PepsiCo normally grants independent bottlers exclusive contracts for certain beverage products in specified geographic areas. The company states that it serves customers and consumers in more than 200 countries and territories. It identifies Walmart and its affiliates, including Sam’s Club, as a major customer, and states that losing this customer would have a material adverse effect on its PFNA and PBNA segments.
Source: PepsiCo, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The company states that its beverage and convenient food categories and markets are highly competitive. It identifies The Coca-Cola Company as its primary beverage competitor in many countries where its products are sold, including the United States. Other named competitors include The Campbell’s Company, Conagra Brands, Hormel Foods, Keurig Dr Pepper, Kraft Heinz, Mars, Mondelēz, Monster Beverage, Nestlé, Primo Brands, Red Bull and Utz Brands. The filing says products compete on brand recognition and loyalty, taste, price, value, quality, product variety, innovation, distribution, shelf space, advertising, marketing, packaging, convenience and service.
Source: PepsiCo, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
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Reduction in future demand for our products would adversely affect our business.
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Damage to our reputation or brand image can adversely affect our business.
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Product recalls or other issues or concerns with respect to product quality and safety can adversely affect our business.
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Any inability to compete effectively can adversely affect our business.
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Changes in the retail landscape or in sales to any key customer can adversely affect our business.
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Disruption of our manufacturing operations or supply chain, including increased commodity, packaging, transportation, labor and other input costs, can adversely affect our business.
Source: PepsiCo, Inc. Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
PepsiCo employed 306,000 people worldwide as of December 27, 2025. The filing states that it is party to numerous collective bargaining agreements. Its operations use manufacturing plants, bottling plants and distribution facilities, as well as company- and third-party-operated manufacturing and distribution locations. The company states that beverage and convenient food sales are generally highest in the third quarter because of seasonal and holiday-related patterns, and generally lowest in the first quarter. It also states that, taken as a whole, seasonality has not had a material impact on consolidated financial results.
Source: PepsiCo, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov