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PBG » Topics » Because we depend upon PepsiCo to provide us with concentrate, certain funding and various services, changes in our relationship with PepsiCo could adversely affect our business and financial results.These excerpts taken from the PBG 10-K filed Feb 20, 2009. Because
we depend upon PepsiCo to provide us with concentrate, certain
funding and various services, changes in our relationship with
PepsiCo could adversely affect our business and financial
results.
We conduct our business primarily under beverage agreements with
PepsiCo. If our beverage agreements with PepsiCo are terminated
for any reason, it would have a material adverse effect on our
business and financial results. These agreements provide that we
must purchase all of the concentrate for such beverages at
prices and on other terms which are set by PepsiCo in its sole
discretion. Any significant concentrate price increases could
materially affect our business and financial results.
PepsiCo has also traditionally provided bottler incentives and
funding to its bottling operations. PepsiCo does not have to
maintain or continue these incentives or funding. Termination or
decreases in bottler incentives or funding levels could
materially affect our business and financial results.
Under our shared services agreement, we obtain various services
from PepsiCo, including procurement of raw materials and certain
administrative services. If any of the services under the shared
services agreement were terminated, we would have to obtain such
services on our own. This could result in a disruption of such
services, and we might not be able to obtain these services on
terms, including cost, that are as favorable as those we receive
through PepsiCo.
Because we depend upon PepsiCo to provide us with concentrate, certain funding and various services, changes in our relationship with PepsiCo could adversely affect our business and financial results. We conduct our business primarily under beverage agreements with PepsiCo. If our beverage agreements with PepsiCo are terminated for any reason, it would have a material adverse effect on our business and financial results. These agreements provide that we must purchase all of the concentrate for such beverages at prices and on other terms which are set by PepsiCo in its sole discretion. Any significant concentrate price increases could materially affect our business and financial results. PepsiCo has also traditionally provided bottler incentives and funding to its bottling operations. PepsiCo does not have to maintain or continue these incentives or funding. Termination or decreases in bottler incentives or funding levels could materially affect our business and financial results. Under our shared services agreement, we obtain various services from PepsiCo, including procurement of raw materials and certain administrative services. If any of the services under the shared services agreement were terminated, we would have to obtain such services on our own. This could result in a disruption of such services, and we might not be able to obtain these services on terms, including cost, that are as favorable as those we receive through PepsiCo. These excerpts taken from the PBG 10-K filed Feb 27, 2008. Because
we depend upon PepsiCo to provide us with concentrate, certain
funding and various services, changes in our relationship with
PepsiCo could adversely affect our business and financial
results.
We conduct our business primarily under beverage agreements with
PepsiCo. If our beverage agreements with PepsiCo are terminated
for any reason, it would have a material adverse effect on our
business and financial results. These agreements provide that we
must purchase all of the concentrate for such beverages at
prices and on other terms which are set by PepsiCo in its sole
discretion. Any significant concentrate price increases could
materially affect our business and financial results.
PepsiCo has also traditionally provided bottler incentives and
funding to its bottling operations. PepsiCo does not have to
maintain or continue these incentives or funding. Termination or
decreases in bottler incentives or funding levels could
materially affect our business and financial results.
Under our shared services agreement, we obtain various services
from PepsiCo, including procurement of raw materials and certain
administrative services. If any of the services under the shared
services agreement were terminated, we would have to obtain such
services on our own. This could result in a disruption of such
services, and we might not be able to obtain these services on
terms, including cost, that are as favorable as those we receive
through PepsiCo.
Because we depend upon PepsiCo to provide us with concentrate, certain funding and various services, changes in our relationship with PepsiCo could adversely affect our business and financial results. We conduct our business primarily under beverage agreements with PepsiCo. If our beverage agreements with PepsiCo are terminated for any reason, it would have a material adverse effect on our business and financial results. These agreements provide that we must purchase all of the concentrate for such beverages at prices and on other terms which are set by PepsiCo in its sole discretion. Any significant concentrate price increases could materially affect our business and financial results. PepsiCo has also traditionally provided bottler incentives and funding to its bottling operations. PepsiCo does not have to maintain or continue these incentives or funding. Termination or decreases in bottler incentives or funding levels could materially affect our business and financial results. Under our shared services agreement, we obtain various services from PepsiCo, including procurement of raw materials and certain administrative services. If any of the services under the shared services agreement were terminated, we would have to obtain such services on our own. This could result in a disruption of such services, and we might not be able to obtain these services on terms, including cost, that are as favorable as those we receive through PepsiCo. | EXCERPTS ON THIS PAGE:
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