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Company: Pepsi Bottling Group (PBG)
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  Rising commodity costs decrease profitability

Soaring prices for sweeteners, fuel and packaging are decreasing the profitability of PBG's already capital-intensive bottling operation.

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  Carbonated soft drinks are largest source of revenue

Though PepsiCo has been investing in the development of non-CSD products, carbonated soft drinks are still PBG's largest source of revenue. Continued shifts in consumer demand away from CSD could negatively impact PBG's overall sales.

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  Offerings determined by the products of PepsiCo

PBG's beverage offerings are largely determined by the concentrates PepsiCo provides, limiting PBG's ability to control its own product line.

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