With a soft drink leader in the market, PepsiCo has made a name in the industry. Pepsi Co has acquired many companies since its inception. With winning the hearts of the people around the world in the Soft drinks, Pepsico has also acquired many subsidiaries to expand the business reach. This multinational company has written its success story through various mergers and acquisitions during the journey.
For the brief about the company, its operations, revenue, business model and deep insight check out our article on Coca-Cola and Pepsi.
This article will let you know the lists of companies acquired by the soft drink giant “Pepsi-Co” and how this has made the company become a successful market leader in the beverages industry.
Subsidiaries of PepsiCo
Frito Lay
One of the wholly owned subsidiaries of PepsiCo, Frito Lay is a snack foods manufacturing company based in the United States and was founded in 1961. It was founded by Herman Lay. PepsiCo acquired Frito Lay in 1965 for around $213 million as a wholly owned subsidiary. Company offers a wide range of Snacks foods including Doritos, Cheetos, Ruffles, Tostitos. This is one of the major acquisitions made by PepsiCo.
The Quaker Oats Company
In the health conscious world, people are more concerned about their fat, looks and body structure. Oats have become a favorite breakfast food for fat concerned people. Quaker was founded in 1877 by Henry Parsons Cromwell and based in Chicago, United States. The company is involved in the manufacturing of Oats and offers a variety of ranges like Oats, Snacks, Cereals and beverage food. PepsiCo acquired the Quaker in 2001 at a deal price of $13.8 billion as a wholly owned subsidiary.
The Smith’s Snack food company
Another wholly owned subsidiary of PepsiCo, Smith’s Snackfood Company is a snack food company that offers a wide range of snacks including Doritos, Burger Rings, Twisties, Cheetos. The company was founded in 1920 in Australia by Frack Smith, Jim Viney, George Ensor. PepsiCo, with an investment of $300 million, purchased the company in 1998. The company accounts for a major share in the United Kingdom Snack and beverages market.
Naked Juice
Don’t judge a company by its name. The name has nothing to do with nudity. The name has been given to depict that the drinks, juice offered by the company are pure and free from artificial colors , flavors and preservatives. Naked Juice was founded in 1983 by Jimmy Rosenberg and David Bleeden in California, USA. The company offers juice and smoothies without artificial addings. PepsiCo acquired the company in 2006 for $150 million. The company has a major share in the US juice and veggies market.
Bluebird Foods
Bluebird foods is a New Zealand based snacks, cereals and muesli bars manufacturing company founded in 1953 by Les Saussey. The company operates in Wiri, Auckland as a manufacturer. The snacks of the company are offered under the various brand names including Cheezels, Burger Rings, Cheetos. The company holds a significant market share in the New Zealand snack market. PepsiCo was acquired by Bluebird Foods in 2006 for NZ $245 million.
SoBe
A fruit juice, plastic bottled water and tea distributor and manufacturer SoBe is another wholly owned subsidiary of PepsiCo. SoBe is based in New York, United State and was established in 1996 by John Bello and Tom Schwalm. The name of the company is the abbreviation of South Beach. It is a popular fruit juice and beverages brand. The company was acquired by PepsiCo in 2000 for $370 million. This was one of the PepsiCo major acquisitions of all.
Mirinda
Another soft drink brand company Mirinda offers a soft drink and beverages was acquired by PepsiCo in 1970 for an undisclosed amount.
The company is based in Spain and was founded in 1959. Mirinda’s name became a famous soft drink brand a few years back. Under the PepsiCo subsidiary umbrella Mirinda has shown significant growth and success. The company was Europe’s leading soft drink brand ever. Mirinda is famous with multiple names around the world. Kas in Spain, Slam in Italy, Tams in South Korea, Sisi in NetherLand. It is available in varieties of flavor of fruits and distributed by PepsiCo around the world.
Stacy’s Pita Chips
Stacy’s Pita Chips was founded in 1998 by Stay Madison and Mark Andrus. Stacy’s Pita chips is based in United States and involved in the manufacturing of range of flavoured chips. Simple naked, Cinnamon Sugar and Garlic Parmesan are some of the variants of the chips. Naked chips is coated with nothing but just a sea salt . The chips are baked to make them crunchy and delicious. Stacy’s Pita Chips has a named of most successful snack food maker in America. The company was acquired by PepsiCo in 2005 for $243 million. The company was started with just $5000 investment and today it worth more than $500 million.
Sodastream International Limited
The company is consumer home carbonation product maker based in Israel but initially founded in UK. Sodastream International Limited was founded in 1903 by Guy Hugh Gilbey in Saba, Israel. Company offers variety of flavored sparkling water. The company has specially designed Soda Mahicne to add CO2 to water from a pressurized cylinder to create carbonated water for drinking purpose. PepsiCo acquired Sodastream International Limited in 2018 for $3.2 billion. This among the biggest acquisition made by PepsiCo. The company got listed on Nasdaq stock exchange in 2010.
Lebedyansky
Lebedyansky is a fruit juice, vegetable juice, soft drinks manufacturing company founded in 1967. The company is based in Russia and has made a successful brand in fruit juice industry. The company is the sixth largest fruit juice, and soft drink manufacturer in the world. Lebedyansky was acquired by PepsiCo in 2008 for $1.4 billion. PepsiCO acquired stake of 75.53% in Lebedyansky.
Pioneer Foods
Pioneer Foods is a packaged foods manufacturing company based in South Africa and was founded in 1996. The company offers a variety of and is one of the largest producers and distributors of branded food and beverage products in South Africa. The company was created after the merger of two packaged goods companies (SASKO and Bokomo). The company is listed on Johannesburg stock exchange since 2008. Pepsico has acquired the packaged food giant in 2020 for $1.7 billion as a wholly owned subsidiary.
Simba (Pty) Limited
Another wholly owned subsidiary of PepsiCo limited, Simba (Pty) Limited was founded in 1957 by Leon Greyvensteyn. The company is based in South Africa and offers and manufactures variety of snack foods. The company is famous for its potato and maize based snack foods in SOuth Africa. The company secures a signifcant portion of SOuth African crisps market with market share of around 60+ %. Simba (Pty) Limited was acquired by PepsiCo in 1999 for $
Conclusion
These are the wholly owned subsidiaries of PepsiCo limited. A soft drink giant in the world. PepsiCo has made this acquisition keeping in mind the expansion of business in different parts of the world with similar and related business companies. ALmost all the acquisition are related to the food, beverages and snacks comapnies. It provides the comapny a benefit of vertical and horizontal acquisitions. PepsiCo has made a siginificant investment in the acquisition of these companies. SOme of them being a market leader in their industry of the area they operates. PepsiCo has shown a siginificant growth in terms of revenue and business operations since its inception.
I hope the article has enable you to understand the position of PepsiCo in the food and beverages industry in the world. How big the soft drink giant is and what companies it owns as subsidiaries.
