The Pepsi Bottling Group facts for kids
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| Public | |
| Industry | Beverages |
| Fate | Purchased by PepsiCo Merged with PepsiAmericas to form Pepsi Beverages Company |
| Founded | March 1999 |
| Founder | PepsiCo |
| Defunct | February 26, 2010 |
| Headquarters | , |
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Number of locations
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648 |
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Area served
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USA, Canada, Greece, Mexico, Russia, Spain, Turkey |
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Key people
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Eric J. Foss, president and CEO (Began work and completed Mountain Dew Code Red, 1993) |
| Products | Pepsi Mountain Dew Sierra Mist Mug Root Beer Slice Sobe Aquafina Tropicana Dole Crush (for Dr. Pepper Snapple Group) Frappuccino (for Starbucks) |
| Services | Bottling |
| Revenue |  US$13.2 Billion (FY 2009) |
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Operating income
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US$1.05 Billion (FY 2009) |
| US$612 Million (FY 2009) |
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| Total assets | US$13.6 Billion (FY 2009) |
| Total equity | US$2.42 Billion (FY 2009) |
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Number of employees
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69,100 |
| Parent | PepsiCo 41.7% share |
| Subsidiaries | Bottling Group, LLC |
The Pepsi Bottling Group, Inc. was once the biggest company in the world that bottled Pepsi-Cola drinks. It was often called PBG. This company was in charge of making, selling, and delivering more than half of all Pepsi-Cola drinks in the United States and Canada. It also handled about 40 percent of Pepsi's drinks worldwide.
PBG had special permission to make and sell Pepsi-Cola drinks in many places. This included most of the United States, parts of Canada, Spain, Greece, Russia, Turkey, and Mexico. Most of PBG's sales (about 70 percent) were in the U.S. and Canada. The company's main office was in Somers, New York.
On August 4, 2009, PepsiCo bought The Pepsi Bottling Group. PepsiCo also bought another large Pepsi bottler called PepsiAmericas. These purchases were finished on February 26, 2010. After this, the two bottling companies became one new company called the Pepsi Beverages Company (PBC). It became a part of PepsiCo.
Contents
History of The Pepsi Bottling Group
Early Challenges in 2008
In late 2008, The Pepsi Bottling Group faced some tough times. The company reported that its earnings had gone down compared to the year before. This meant they were making less money. Sales were also slower, especially in the United States.
The company's CEO, Eric Foss, said that people were buying fewer drinks. This problem spread to other areas like Europe and Mexico. For example, in Europe, the total number of drinks sold dropped by 6 percent. This was due to economic problems, like rising food prices in Russia and housing issues in Spain. In Mexico, sales also went down because less money was being sent home from the U.S. by workers.
Changes and Cost Cutting
To deal with these challenges, PepsiCo announced some big changes in October 2008. They planned to cut jobs and close some factories. The goal was to save a lot of money over three years. They wanted to use these savings to help boost soft drink sales in the U.S., which were not doing well.
In November 2008, The Pepsi Bottling Group also announced its own plans to save money. They called this their "Structured to Succeed" program. As part of this plan, about 3,150 employees lost their jobs. This was about 4.5 percent of their total workers. They also closed four facilities in the U.S. and Canada. In Mexico, they closed three plants, 30 distribution centers, and changed 700 delivery routes, which affected 2,200 jobs.
Financial Results and New Partnerships
In early 2009, The Pepsi Bottling Group reported a financial loss for the end of 2008. This loss was partly due to the costs of making all those changes and closing facilities, especially in Mexico. Sales continued to drop in North America and Europe.
However, there was also good news. In February 2009, PepsiCo announced a new agreement with Rockstar Energy Drink. This meant that The Pepsi Bottling Group and other Pepsi bottlers would help distribute Rockstar drinks. They would deliver Rockstar across most of the United States and all of Canada.
