PepsiCo Beverages International

Volume was up nearly 5%, matching our largest competitor. Revenue was up 2%. Operating profit was up 31%.

The volume growth, reflecting strength in Russia, China, Brazil and Thailand, contributed to important advances in market share. In fact, PBI gained share in most of its top markets, with particular progress in Lebanon, Russia, Venezuela, Vietnam and Egypt.

Here too, innovation was a big factor. Extensions of the flagship Pepsi trademark helped drive growth in a variety of markets. For example, Pepsi Limón and Pepsi Twist — in both cases, Pepsi with a hint of lemon — proved popular in Mexico and Saudi Arabia. The launch of Mountain Dew contributed significantly to growth in Russia. And new additions to the established lineup of Mirinda brand flavors were launched in more than 30 markets.

As an operating unit, PBI gains important advantages by bringing together Pepsi-Cola, Gatorade and Tropicana. Combining the general and administrative functions of these businesses around the globe yields very substantial cost savings.

PBI also has an outstanding foundation for driving growth in non-carbonated beverages. The combination of Gatorade, Tropicana and Pepsi's water makes a powerful portfolio for a wide range of needs — from simple refreshment to nutrition to postexercise hydration — for consumers around the world.

Worldwide Beverages continued -->