[PEPSICO, INC. 2000 ANNUAL REPORT][Financial Highlights][Letter from the Chairman]Quaker Oats[Frito Lay][Pepsi-Cola][Tropicana][Corporate Citizenship]
[Principal Divisions & Corporate Officers][PepsiCo Products][Board of Directors][Capital Stock Information/Stock Performance][Shareholder Information]

North America
With revenue and operating profit up 8% and 9%, respectively, Pepsi-Cola North America (PCNA) posted its best profit and revenue growth in years.

Bottler case sales grew modestly due to higher wholesale and retail pricing. However, this much-needed pricing increase established improved system economics for the long term and contributed significantly to our profit growth.

Carbonated soft drinks (CSDs) represented 90% of PCNA's total beverage volume. In colas, by far the largest CSD category, we narrowed the share gap between our brands and the market leader: Diet Pepsi grew faster than any other top-10 CSD; Wild Cherry Pepsi achieved strong double-digit growth; and The Pepsi Challenge showed consumers' preference for Pepsi (and Pepsi One). Mountain Dew, already the third-largest CSD in combined measured U.S. channels, again outperformed the industry. The fourth-quarter launch of Sierra Mist dramatically increased our presence in lemon-lime, the second-largest CSD segment in the U.S.

As consumers increasingly seek variety, PCNA continued building its very strong portfolio of non-carbonated beverages, the fastest-growing part of the beverage industry. Aquafina, with volume up 32%, remained the number one single-serve bottled water in the United States. Lipton again was the number one ready-to-drink tea. Frappuccino defined the ready-to-drink coffee segment. We also added new brands, launching FruitWorks and, in January 2001, acquiring the tremendously successful SoBe brand drinks enhanced with herbal ingredients.

In fountain beverages, Tricon Global Restaurants, our largest fountain customer, signed a multi-year agreement to make Pepsi-Cola the preferred beverage supplier for its system of 20,000 Pizza Hut, Taco Bell and KFC restaurants in the United States.

Finally, the merger of Whitman Corporation and PepsiAmericas combined our second- and third-largest U.S.-based bottlers and substantially strengthened our manufacturing and distribution system.

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