The Pepsi Bottling Group facts for kids

Quick facts for kids
The Pepsi Bottling Group, Inc.

Former type	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	Somers, New York , U.S.
Number of locations	648
Area served	USA, Canada, Greece, Mexico, Russia, Spain, Turkey
Key people	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)
Operating income	US$1.05 Billion (FY 2009)
Net income	US$612 Million (FY 2009)
Total assets	US$13.6 Billion (FY 2009)
Total equity	US$2.42 Billion (FY 2009)
Number of employees	69,100
Parent	PepsiCo 41.7% share
Subsidiaries	Bottling Group, LLC

The Pepsi Bottling Group, Inc. (PBG) was once the biggest company that bottled Pepsi-Cola drinks in the world. They made, sold, and delivered Pepsi drinks in many places. This included more than half of the Pepsi drinks sold in the United States and Canada. They also handled about 40 percent of Pepsi's drinks worldwide.

PBG had special rights to bottle Pepsi drinks in parts of 43 U.S. states, the District of Columbia, and nine Canadian provinces. They also operated in countries like Spain, Greece, Russia, Turkey, and Mexico. Most of their sales, about 70 percent, came from the United States and Canada. The main office for Pepsi Bottling Group was in Somers, New York.

In 2009, PepsiCo, the company that owns Pepsi, decided to buy PBG. They also bought another big Pepsi bottler called PepsiAmericas. These purchases were finished in 2010. After that, PBG and PepsiAmericas became one new company. This new company was called the Pepsi Beverages Company (PBC). It became a part of PepsiCo.

History of PBG

Early Challenges and Changes

In late 2008, The Pepsi Bottling Group faced some challenges. The company announced that its earnings had gone down compared to the year before. This was because people were buying fewer drinks. This slowdown in sales was happening not just in the U.S., but also in Europe and Mexico.

For example, in Europe, the total number of drinks sold dropped by 6 percent. This was due to economic problems and rising food prices in places like Russia. In Spain, problems with housing also affected sales. In Mexico, sales went down by 9 percent. This was because less money was being sent home from the U.S., which made people less confident about spending.

Leadership Changes and Cost Cutting

In October 2008, Eric Foss, who was the chief executive officer, also became the chairman of the board. Around the same time, PepsiCo, the parent company, announced big plans to save money. They said they would cut 3,300 jobs and close six factories. Their goal was to save $1.2 billion over three years. They wanted to use this money to help boost soft drink sales in the U.S.

Later in 2008, The Pepsi Bottling Group also announced its own plan to cut costs. This plan was called "Structured to Succeed." They aimed to make their operations more efficient around the world. As part of this plan, about 3,150 employees, which was 4.5% of their workers, lost their jobs.

About 750 jobs were cut in the U.S. and Canada, and four facilities in the U.S. were closed. In Europe, 200 jobs were affected as they made operations simpler. In Mexico, three plants and 30 distribution centers were closed, and 700 delivery routes were stopped. This affected 2,200 jobs there.

Financial Results and New Partnerships

In early 2009, The Pepsi Bottling Group reported a loss for the last part of 2008. This was mainly due to the costs of their restructuring plan and other business changes in Mexico. Sales volume 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 Rockstar drinks would be distributed by The Pepsi Bottling Group and other Pepsi bottlers across most of the United States and all of Canada. This helped expand the types of drinks PBG handled.

Key People at PBG

Here are some of the important leaders at The Pepsi Bottling Group:

• Eric J. Foss, chairman and chief executive officer
• President, PBG North America
• Richard Glover, president, PBG Canada
• Yiannis Petrides, president, PBG Europe
• Brent J. Franks, senior vice president, worldwide operations
• Eric Llopis, senior vice president, chief strategy officer
• Ronald R.R. Neugold, vice president, foodservice
• Tom Lardieri, vice president and controller
• Mary Winn Settino, vice president, investor and public relations