CHAPTER-I

INTRODUCTION

PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001which added the Gatorade brand to its portfolio. As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1 billion each,[3] and the company's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business. Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 297,000 people worldwide as of 2011. The company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.

CHAPTER II
2.1 Origins

History

The recipe for Pepsi, the soft drink, was first developed in the 1880s by a New Bern, North Carolina pharmacist and industrialist, Caleb Bradham, who named it "Pepsi-Cola" in 1898. As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903.[4] The Pepsi-Cola Company was first incorporated in the state of Delaware in 1919.[5] The company went bankrupt in 1931 and on June 8 of that year the trademark and syrup recipe was bought by Charles Guth who owned a syrup manufacturing business in Baltimore, Maryland. Guth was also the president of Loft, Incorporated, a leading candy manufacturer and used the company's labs and chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large chain of candy shops and restaurants, which were known for their soda fountains, used Loft resources to promote Pepsi, and moved the soda company to a location close by Loft's own facilities in New York City. In 1935 the shareholders of Loft sued Guth for his 91% stake of PepsiCo in the landmark Guth v. Loft Inc.. Loft won the suit and on May 29, 1941 formally absorbed Pepsi into Loft, which was then rebranded as Pepsi Cola Company that same year. (Loft restaurants and candy stores were spun off at this time.) In the early 1960s the company product line expanded with the creation of Diet Pepsi and purchase of Mountain Dew.[6] Separately, the Frito Company and H.W. Lay & Company two American potato and corn chip snack manufacturers began working together in 1945 with a licensing agreement allowing

H.W. Lay to distribute Fritos in the Southeastern United States. The companies merged to become Frito-Lay, Inc. in 1961.[7] In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the company it is known as at present. At the time of its foundation, PepsiCo was incorporated in the state of Delaware and headquartered in Manhattan, New York. The company's headquarters were relocated to its still-current location of Purchase, New York in 1970,[8] and in 1986 PepsiCo was reincorporated in the state of North Carolina.[5] PepsiCo was the first company to stamp expiration dates, starting in March 1994.[citation needed]

2.2 Acquisitions and divestments

Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses outside of its core focus of packaged food and beverage brands; however it exited these non-core business lines largely in 1997, selling some, and spinning off others into a new company named Tricon Global Restaurants, which later became known as Yum! Brands, Inc..[9] PepsiCo also previously owned several other brands that it later sold so it could focus on its primary snack food and beverage lines, according to investment analysts reporting on the divestments in 1997.[10] Brands formerly owned by PepsiCo include: Pizza Hut,[11] Taco Bell,[11] KFC,[11] Hot 'n Now,[12] East Side Mario's,[13] D'Angelo Sandwich Shops,[14] Chevys Fresh Mex, California Pizza Kitchen,[15] Stolichnaya[16] (via licensed agreement), Wilson Sporting Goods[17] and North American Van Lines.[18] The divestments concluding in 2007 were followed by multiple large-scale acquisitions, as PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo purchased the orange juice company Tropicana Products in 1998,[19] and merged with Quaker Oats Company in 2001,[20] adding with it the Gatorade sports drink line and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima, among others.[21] In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its products in North America: Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition was completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi Beverages Company.[22] In February 2011, the company made its largest international acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann Foods, a Russian food company that produces milk, yogurt, fruit juices, and dairy products.[23] When it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food and beverage company in Russia.[24][25]

2.3 Restructuring
In February 2012 ahead, CEO of PepsiCo Inc. plans to cut 8,700 jobs or about 3 percent of the PepsiCo's global workforce and boost marketing spending for its brand by as much as $600 million. It may save about $1.5 billion by 2014.[26]

2.4

Competition

The Coca-Cola Company has historically been considered PepsiCo's primary competitor in the beverage market,[27] and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft drink sales within the U.S.[28] In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies.[28] As a result of mergers, acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader product base, including foods, snacks and beverages. The majority of PepsiCo's revenues no longer come from the production and sale of carbonated soft drinks.[29] Beverages accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly more than 60 percent of PepsiCo's beverage sales came from its primary noncarbonated brands, namely Gatorade and Tropicana.[28] PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market, accounting for approximately 39 percent of U.S. snack food sales in 2009.[28] One of PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the same year held 11 percent of the U.S. snack market share.

CHAPTER III

Our Mission and Vision

At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business.

Our Mission
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Our Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic - creating a better tomorrow than today." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

3.1

PepsiCo Values & Philosophy

Our Values & Philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make.

Our Commitment

We are committed to delivering sustained growth through empowered people acting responsibly and building trust.

What It Means
Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done. Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own. Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do. We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together.

Guiding Principles

We uphold our commitment with six guiding principles. We must always strive to: 1. Care for our customers, our consumers and the world we live in. We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit toward solutions that benefit both our company and our constituents. Our success depends on a thorough understanding of our customers, consumers and communities. To foster this spirit of generosity, we go the extra mile to show we care. 2. Sell only products we can be proud of. The true test of our standards is our own ability to consume and personally endorse the products we sell. Without reservation. Our confidence helps ensure the quality of our products, from the moment we purchase ingredients to the moment it reaches the consumer's hand. 3. Speak with truth and candor. We tell the whole story, not just what's convenient to our individual goals. In addition to being clear, honest and accurate, we are responsible for ensuring our communications are understood. 4. Balance short term and long term. In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this balance helps sustain our growth and ensures our ideas and solutions are relevant both now and in the future. 5. Win with diversity and inclusion. We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings new perspectives into the workplace and encourages innovation, as well as the ability to identify new market opportunities. 6. Respect others and succeed together. Our mutual success depends on mutual respect, inside and outside the company. It requires people who are capable of working together as part of a team or informal collaboration. While our company is built on individual excellence, we also recognize the importance and value of teamwork in turning our goals into accomplishments.

CHAPTER

Areas of business

The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of 2010 it is separated into four main divisions:[32] PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. As of 2009, 71 percent of the company's net revenues came from North and South America, 16 percent from Europe and 13 percent from Asia, the Middle East and Africa.[33] Approximately 285,000 people are employed by PepsiCo worldwide as of 2010.[34]

PepsiCo Americas Foods

PepsiCo Americas Foods consists of the company's food and snack operations in North and South America. This operating division is further segmented into Frito-Lay North America, Quaker Foods & Snacks, Sabritas, Gamesa, and Latin America Foods. Food and snack sales in North and South America combined contributed 48 percent of PepsiCo's net revenue in 2009.[30][35][36] Frito-Lay North America, the result of a merger in 1961 between the Frito Company and the H.W. Lay Company, produces the top selling line of snack foods in the U.S. Its main brands in the U.S., Canada and Mexico and include Lay's and Ruffles potato chips, Doritos tortilla chips, Tostitos tortilla chips and dips, Cheetos cheese flavored snacks, Fritos corn chips, Rold Gold pretzels, Sun Chips and Cracker Jack popcorn. Products made by this division are sold to independent distributors and retailers, and are transported from Frito-Lay's manufacturing plants to distribution centers, principally in vehicles owned and operated by the company.[37] Quaker Foods North America, created following PepsiCo's acquisition of the Quaker Oats Company in 2001, manufactures, markets and sells Quaker Oatmeal, Rice-A-Roni, Cap'n Crunch and Life cereals, as well as Near East side dishes within North America. This division also owns and produces the Aunt Jemima brand, which as of 2009 was the top selling line of syrups and pancake mixes within this region.[28][38] Sabritas and Gamesa are two of PepsiCo's food and snack business lines headquartered in Mexico, and they were acquired by PepsiCo in 1966 and 1990, respectively. Sabritas markets Frito-Lay products in Mexico, including local brands such as Poffets, Rancheritos, Crujitos and Sabritones. Gamesa is the largest manufacturer of cookies in Mexico, distributing brands such as Emperador, Arcoiris and Maras Gamesa.[39] PepsiCo's Latin America Foods (Spanish: Snacks Amrica Latina) operations market and sell primarily Quaker- and Frito-Lay-branded snack foods within Central and South America, including Argentina, Brazil, Peru and other countries in this region.[40] Snacks Amrica Latina purchased Peruvian company Karinto S.A.C. including its production company Bocaditas Nacionales (with three production facilities in Peru) from the Hayashida family of Lima in 2009, adding the Karito brand to its product line, including Cuates, Fripapas, and Papi Frits.[41]

PepsiCo Americas Beverages

This division contributed 23 percent of PepsiCo's net revenue as of 2009,[30] and involves the manufacture (and in some cases licensing), marketing and sales of both carbonated and noncarbonated beverages in North, Central and South America.[42] The main brands distributed under this division include Pepsi, Mountain Dew, Gatorade, 7 Up (outside the U.S.), Tropicana Pure Premium orange juice, Sierra Mist, SoBe Lifewater, Tropicana juice drinks, AMP Energy, Naked Juice and Izze. Aquafina, the company's bottled water brand, is also marketed and licensed through PepsiCo Americas Beverages.[1] PepsiCo also has formed partnerships with several beverage brands it does not own, in order to distribute or market them with its own brands.[1] As of 2010, its partnerships include: Starbucks (Frappuccino, DoubleShot and Iced Coffee), Unilever's Lipton brand (Lipton Brisk and Lipton Iced Tea), and Dole (licensed juices and drinks). The company started a new market strategy to sell their Pepsi Cola product in Mexico, stating that about one third of the population has difficulty pronouncing "Pepsi". They started manufacturing and selling their product under the label 'Pcsi', the advertisement campaign features the Mexican soccer celebrity Cuauhtmoc Blanco. This is not the first time it has happened, back in 2009, PepsiCo used the same strategy successfully in Argentina.[43]

PepsiCo Europe
PepsiCo began to expand its distribution in Europe in the 1980s, and in 2009 it made up 16 percent of the company's global net revenue.[30] Unlike PepsiCo's Americas business segments, both foods and beverages are manufactured and marketed under one umbrella division in this region, known as PepsiCo Europe. The primary brands sold by PepsiCo in Europe include PepsiCola beverages, Frito-Lay snacks, Tropicana juices and Quaker food products, as well as regional brands unique to Europe such as Walkers crisps, Copella, Paw Ridge, Snack-a-Jack, Duyvis and others. PepsiCo also distributes the soft drink 7UP in Europe via license agreement.[1] PepsiCo's European presence expanded in Russia in 2009 as the company announced a $1B investment,[44] and with its acquisition of Russian juice and dairy product brand Wimm-BillDann Foods in December 2010 and Lebedyansky juice producer in March 2008.[45]

PepsiCo Asia, Middle East & Africa

The most recently created operating division of PepsiCo covers Asia, the Middle East and Africa.[29] In addition to the production and sales of several worldwide Pepsi-Cola, Quaker Foods and Frito-Lay beverage and food product lines (including Pepsi and Doritos), this segment of PepsiCo's business markets regional brands such as Mirinda, Kurkure and Red Rock Deli, among others.[1] While PepsiCo owns its own manufacturing and distribution facilities in certain parts of these regions, more of this production is conducted via alternate means such as licensing (which it does with Aquafina), contract manufacturing, joint ventures and affiliate operations. PepsiCo's businesses in these regions, as of 2009, contributed 13 percent to the company's net revenue worldwide.

CHAPTER

Environmental record and product nutrition

According to its 2009 annual report, PepsiCo states that it is "committed to delivering sustainable growth by investing in a healthier future for people and our planet,"[30][67] which it has defined in its mission statement since 2006 as "Performance with Purpose".[68][69] According to news and magazine coverage on the subject in 2010, the objective of this initiative is to increase the number and variety of healthier food and beverage products made available to its customers,[70] employ a reduction in the company's environmental impact,[71] and to facilitate diversity and healthy lifestyles within its employee base.[68] Its activities in regards to the pursuit of its goals namely environmental impacts of production and the nutritional composition of its products have been the subject of recognition from health and environmental advocates and organizations, and at times have raised concerns among its critics. As the result of a more recent focus on such efforts, "critics consider (PepsiCo) to be perhaps the most proactive and progressive of the food companies", according to former New York Times food industry writer Melanie Warner in 2010.[72]

Environmental record
Genetically Modified Food Ingredients PepsiCo has contributed $1,716,300 to oppose the passage of California Proposition 37, which would mandate the disclosure of genetically modified crops used in the production of California food products.[73][74][75] PepsiCo believes "that genetically-modified products can play a role in generating positive economic, social and environmental contributions to societies around the world; particularly in times of food shortages."[76] Water usage (India, U.S., U.K.) PepsiCo's usage of water was the subject of controversy in India in the early and mid 2000s in part because of the company's alleged impact on water usage in a country where water shortages are a perennial issue. In this setting, PepsiCo was perceived by India-based environmental organizations as a company that diverted water to manufacture a discretionary product, making it a target for critics at the time.[77] As a result, in 2003 PepsiCo launched a country-wide program to achieve a "positive water balance" in India by 2009.[78] In 2007, PepsiCo's CEO Indra Nooyi made a trip to India to address water usage practices in the country, prompting prior critic Sunita Narain, director of the Centre for Science & Environment (CSE), to note that PepsiCo "seem(s) to be doing something serious about water now."[77] According to the company's 2009 corporate citizenship report,[67] as well as media reports at the time,[72] the company (in 2009) replenished nearly six billion liters of water within India, exceeding the aggregate water intake of approximately five billion liters by PepsiCo's India manufacturing facilities.[67] Water usage concerns have arisen at times in other countries in which PepsiCo operates. In the U.S., water shortages in certain regions resulted in increased scrutiny on the company's production facilities, which were cited in media reports as being among the largest water users in

cities facing drought such as Atlanta, Georgia.[79][80] In response, the company formed partnerships with non-profit organizations such as the Earth Institute and Water.org, and in 2009 began cleaning new Gatorade bottles with purified air instead of rinsing with water, among other water conservation practices.[81] In the United Kingdom, also in response to regional drought conditions, PepsiCo snacks brand Walkers' reduced water usage at its largest potato chip facility by 45 percent between the years 2001 and 2008. In doing so, the factory used machinery that captured water naturally contained in potatoes, and used it to offset the need for outside water.[82][83] As a result of water reduction practices and efficiency improvements, PepsiCo in 2009 saved more than 12 billion liters of water worldwide,[84] compared to its 2006 water usage. Environmental advocacy organizations including the Natural Resources Defense Council and individual critics such as Rocky Anderson (mayor of Salt Lake City, Utah) voiced concerns in 2009, noting that the company could conserve additional water by refraining from the production of discretionary products such as Aquafina.[85] The company maintained its positioning of bottled water as "healthy and convenient", while also beginning to partially offset environmental impacts of such products through alternate means, including packaging weight reduction.[85] Pesticide regulation (India) PepsiCo's India operations were met with substantial resistance in 2003 and again in 2006, when an environmental organization in New Delhi made the claim that, based on its research, it believed that the levels of pesticides in PepsiCo (along with those from rival Coca-Cola Company), exceeded a set of proposed safety standards on soft drink ingredients that had been developed by the Bureau of Indian Standards.[86] PepsiCo denied the allegations, and India's health ministry has also dismissed the allegations both questioning the accuracy of the data compiled by the CSE, as it was tested by its own internal laboratories without being verified by outside peer review.[87][88] The ensuing dispute prompted a short-lived ban on the sale of PepsiCo and Coca-Cola Company soft drinks within India's southwestern state of Kerala in 2006;[89] however this ban was reversed by the Kerala High Court one month later.[90] In November, 2010, the Supreme Court of India invalidated a criminal complaint filed against PepsiCo India by the Kerala government, on the basis that the beverages did meet local standards at the time of the allegations. The court ruling stated that the "percentage of pesticides" found in the tested beverages was "within the tolerance limits subsequently prescribed in respect of such product," since at the time of testing "there was no provision governing pesticide adulteration in cold drinks."[91][92] In 2010, PepsiCo was among the 12 multinational companies that displayed "the most impressive corporate social responsibility credentials in emerging markets", as determined by the U.S. Department of State.[93] PepsiCo's India unit received recognition on the basis of its water conservation and safety practices and corresponding results.[94] Packaging and recycling Environmental advocates have raised concern over the environmental impacts surrounding the disposal of PepsiCo's bottled beverage products in particular, as bottle recycling rates for the company's products in 2009 averaged 34 percent within the U.S.[95] The company has employed

efforts to minimize these environmental impacts via packaging developments combined with recycling initiatives. In 2010, PepsiCo announced a goal to create partnerships that prompt an increase the beverage container recycling rate in the U.S. to 50 percent by 2018.[96] One strategy enacted to reach this goal has been the placement of interactive recycling kiosks called "Dream Machines" in supermarkets, convenience stores and gas stations, with the intent of increasing access to recycling receptacles.[97][98] The use of resin to manufacture its plastic bottles has resulted in reduced packaging weight, which in turn reduces the volume of fossil fuels required to transport certain PepsiCo products. The weight of Aquafina bottles was reduced nearly 40 percent, to 15 grams, with a packaging redesign in 2009. Also in that year, PepsiCo brand Naked Juice began production and distribution of the first 100 percent post-consumer recycled plastic bottle.[99] On March 15, 2011, PepsiCo unveiled the world's first plant-based PET bottle. The bottle is made from plant-based materials, such as switch grass, corn husks, and pine bark, and is 100% recyclable. PepsiCo plans to use more by-products (of their manufacturing processes) such as orange peels and oat hulls in the bottles. PepsiCo has identified methods to create a molecular structure that is the same as normal petroleum-based PETwhich will make the new bottle technology, dubbed "Green Bottle", feel the same as normal PET. PepsiCo will pilot production in 2012, and upon successful completion of the pilot, intends moving to full-scale commercialization.[100] Energy usage and carbon footprint PepsiCo, along with other manufacturers in its industry, has drawn criticism from environmental advocacy groups for the production and distribution of plastic product packaging, which consumed an additional 1.5 billion US gallons (5,700,000 m3) of petrochemicals in 2008. These critics have also expressed apprehension over the production volume of plastic packaging, which results in the emission of carbon dioxide.[101] Beginning largely in 2006, PepsiCo began development of more efficient means of producing and distributing its products using less energy,[102] while also placing a focus on emissions reduction.[101] In a comparison of 2009 energy usage with recorded usage in 2006, the company's per-unit use of energy was reduced by 16 percent in its beverage plants and 7 percent in snack plants.[67] In 2009, Tropicana (owned by PepsiCo) was the first brand in the U.S. to determine the carbon footprint of its orange juice product, as certified by the Carbon Trust, an outside auditor of carbon emissions.[103] Also in 2009, PepsiCo began the test deployment of so-called "green vending machines," which reduce energy usage by 15 percent in comparison to average models in use. It developed these machines in coordination with Greenpeace, which described the initiative as "transforming the industry in a way that is going to be more climate-friendly to a great degree."[103]

Product nutrition
Product diversity

From its founding in 1965 until the early 1990s, the majority of PepsiCo's product line consisted of carbonated soft drinks and convenience snacks. PepsiCo broadened its product line substantially throughout the 1990s and 2000s with the acquisition and development of what its CEO deemed as "good-for-you" products, including Quaker Oats, Naked Juice and Tropicana orange juice.[104] Sales of such healthier-oriented PepsiCo brands totaled $10 billion in 2009, representing 18 percent of the company's total revenue in that year. This movement into a broader, healthier product range has been moderately well received by nutrition advocates; though commentators in this field have also suggested that PepsiCo market its healthier items as aggressively as less-healthy core products.[105] In response to shifting consumer preferences and in part due to increasing governmental regulation, PepsiCo in 2010 indicated its intention to grow this segment of its business, forecasting that sales of fruit, vegetable, whole grain and fiber-based products will amount to $30 billion by 2020.[106][107] To meet this intended target, the company has said that it plans to acquire additional health-oriented brands while also making changes to the composition of existing products that it sells.[107] Ingredient changes Public health advocates have suggested that there may be a link between the ingredient makeup of PepsiCo's core snack and carbonated soft drink products and rising rates of health conditions such as obesity and diabetes. The company aligns with personal responsibility advocates, who assert that food and beverages with higher proportions of sugar or salt content are fit for consumption in moderation by individuals who also exercise on a regular basis.[108] Changes to the composition of its products with nutrition in mind have involved reducing fat content, moving away from trans-fats, and producing products in calorie-specific serving sizes to discourage overconsumption, among other changes.[70] One of the earlier ingredient changes involved sugar and caloric reduction, with the introduction of Diet Pepsi in 1964 and Pepsi Max in 1993 both of which are variants of their full-calorie counterpart, Pepsi. More recent changes have consisted of saturated fat reduction, which Frito-Lay reduced by 50% in Lay's and Ruffles potato chips in the U.S. between 2006 and 2009.[108] Also in 2009, PepsiCo's Tropicana brand introduced a new variation of orange juice (Trop50) sweetened in part by the plant Stevia, which reduced calories by half.[108] Since 2007, the company also made available lower-calorie variants of Gatorade, which it calls "G2".[109] Distribution to children As public perception placed additional scrutiny on the marketing and distribution of carbonated soft drinks to children, PepsiCo announced in 2010 that by 2012, it will remove beverages with higher sugar content from primary and secondary schools worldwide.[110] It also, under voluntary guidelines adopted in 2006, replaced "full-calorie" beverages in U.S. schools with "lowercalorie" alternatives, leading to a 95 percent reduction in the 2009 sales of full-calorie variants in these schools in comparison to the sales recorded in 2004.[111] In 2008, in accordance with guidelines adopted by the International Council of Beverages Associations, PepsiCo eliminated

the advertising and marketing of products that do not meet its nutrition standards, to children under the age of 12.[112][113] In 2010, First Lady Michelle Obama initiated a campaign to end childhood obesity (titled Let's Move!), in which she sought to encourage healthier food options in public schools, improved food nutrition labeling and increased physical activity for children. In response to this initiative, PepsiCo, along with food manufacturers Campbell Soup, Coca-Cola, General Mills and others in an alliance referred to as the "Healthy Weight Commitment Foundation", announced in 2010 that the companies will collectively cut one trillion calories from their products sold by the end of 2012 and 1.5 trillion calories by the end of 2015.