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This excerpt taken from the PBG 8-K filed Sep 16, 2009. RELATIONSHIP
WITH PEPSICO
PepsiCo is a related party due to the nature of our franchise
relationship and its ownership interest in our company. More
than 80 percent of our volume is derived from the sale of
PepsiCo brands. At December 27, 2008, PepsiCo owned
approximately 33.2 percent of our outstanding common stock
and 100 percent of our outstanding class B common
stock, together representing approximately 40.2 percent of
the voting power of all classes of our voting stock. In
addition, at December 27, 2008, PepsiCo owned
6.6 percent of the equity of Bottling LLC and
40 percent of PR Beverages Limited (“PR
Beverages”), a consolidated venture for our Russian
operations. We fully consolidate the results of Bottling LLC and
PR Beverages and present PepsiCo’s share as noncontrolling
interests in our Consolidated Financial Statements.
On March 1, 2007, together with PepsiCo, we formed PR
Beverages, a venture that enables us to strategically invest in
Russia to accelerate our growth. PBG contributed its business in
Russia to PR Beverages, and PepsiCo entered into bottling
agreements with PR Beverages for PepsiCo beverage products sold
in Russia on the same terms as in effect for PBG immediately
prior to the venture. PR Beverages has an exclusive license to
manufacture and sell PepsiCo concentrate for such products.
Increases in gross profit and operating income resulting from
the consolidation of the venture are offset by net income
attributable to noncontrolling interests related to
PepsiCo’s share. Net income attributable to noncontrolling
interests is recorded below income tax expense.
Our business is conducted primarily under beverage agreements
with PepsiCo, including a master bottling agreement, non-cola
bottling agreements, distribution agreements and a master syrup
agreement. These agreements provide PepsiCo with the ability, at
its sole discretion, to establish prices, and other terms and
conditions for our purchase of concentrates and finished
products from PepsiCo. PepsiCo provides us with bottler funding
to support a variety of trade and consumer programs such as
consumer incentives, advertising support, new product support
and vending and cooler equipment placement. The nature and type
of programs, as well as the level of funding, vary annually.
Additionally, under a shared services agreement, we obtain
various services from PepsiCo, which include services for
information technology maintenance and the procurement of raw
materials. We also provide services to PepsiCo, including
facility and credit and collection support.
Because we depend on PepsiCo to provide us with concentrate
which we use in the production of CSDs and non-carbonated
beverages, bottler incentives and various services, changes in
our relationship with PepsiCo could have a material adverse
effect on our business and financial results.
For further information about our relationship with PepsiCo and
its affiliates see Note 15 in the Notes to Consolidated
Financial Statements.
These excerpts taken from the PBG 10-K filed Feb 20, 2009. RELATIONSHIP
WITH PEPSICO
PepsiCo is a related party due to the nature of our franchise
relationship and its ownership interest in our company. More
than 80 percent of our volume is derived from the sale of
PepsiCo brands. At December 27, 2008, PepsiCo owned
approximately 33.2 percent of our outstanding common stock
and 100 percent of our outstanding class B common
stock, together representing approximately 40.2 percent of
the voting power of all classes of our voting stock. In
addition, at December 27, 2008, PepsiCo owned
6.6 percent of the equity of Bottling LLC and
40 percent of PR Beverages Limited (“PR
Beverages”), a consolidated venture for our Russian
operations. We fully consolidate the results of Bottling LLC and
PR Beverages and present PepsiCo’s share as minority
interest in our Consolidated Financial Statements.
On March 1, 2007, together with PepsiCo, we formed PR
Beverages, a venture that enables us to strategically invest in
Russia to accelerate our growth. PBG contributed its business in
Russia to PR Beverages, and PepsiCo entered into bottling
agreements with PR Beverages for PepsiCo beverage products sold
in Russia on the same terms as in effect for PBG immediately
prior to the venture. PR Beverages has an exclusive license to
manufacture and sell PepsiCo concentrate for such products.
Increases in gross profit and operating income resulting from
the consolidation of the venture are offset by minority interest
expense related to PepsiCo’s share. Minority interest
expense is recorded below operating income.
Our business is conducted primarily under beverage agreements
with PepsiCo, including a master bottling agreement, non-cola
bottling agreements, distribution agreements and a master syrup
agreement. These agreements provide PepsiCo with the ability, at
its sole discretion, to establish prices, and other terms and
conditions for our purchase of concentrates and finished
products from PepsiCo. PepsiCo provides us with bottler funding
to support a variety of trade and consumer programs such as
consumer incentives, advertising support, new product support
and vending and cooler equipment placement. The nature and type
of programs, as well as the level of funding, vary annually.
Additionally, under a shared services agreement, we obtain
various services from PepsiCo, which include services for
information technology maintenance and the procurement of raw
materials. We also provide services to PepsiCo, including
facility and credit and collection support.
Because we depend on PepsiCo to provide us with concentrate
which we use in the production of CSDs and non-carbonated
beverages, bottler incentives and various services, changes in
our relationship with PepsiCo could have a material adverse
effect on our business and financial results.
For further information about our relationship with PepsiCo and
its affiliates see Note 15 in the Notes to Consolidated
Financial Statements.
RELATIONSHIP WITH PEPSICO PepsiCo is a related party due to the nature of our franchise relationship and its ownership interest in our company. More than 80 percent of our volume is derived from the sale of PepsiCo brands. At December 27, 2008, PepsiCo owned approximately 33.2 percent of our outstanding common stock and 100 percent of our outstanding class B common stock, together representing approximately 40.2 percent of the voting power of all classes of our voting stock. In addition, at December 27, 2008, PepsiCo owned 6.6 percent of the equity of Bottling LLC and 40 percent of PR Beverages Limited (“PR Beverages”), a consolidated venture for our Russian operations. We fully consolidate the results of Bottling LLC and PR Beverages and present PepsiCo’s share as minority interest in our Consolidated Financial Statements. On March 1, 2007, together with PepsiCo, we formed PR Beverages, a venture that enables us to strategically invest in Russia to accelerate our growth. PBG contributed its business in Russia to PR Beverages, and PepsiCo entered into bottling agreements with PR Beverages for PepsiCo beverage products sold in Russia on the same terms as in effect for PBG immediately prior to the venture. PR Beverages has an exclusive license to manufacture and sell PepsiCo concentrate for such products. Increases in gross profit and operating income resulting from the consolidation of the venture are offset by minority interest expense related to PepsiCo’s share. Minority interest expense is recorded below operating income. Our business is conducted primarily under beverage agreements with PepsiCo, including a master bottling agreement, non-cola bottling agreements, distribution agreements and a master syrup agreement. These agreements provide PepsiCo with the ability, at its sole discretion, to establish prices, and other terms and conditions for our purchase of concentrates and finished products from PepsiCo. PepsiCo provides us with bottler funding to support a variety of trade and consumer programs such as consumer incentives, advertising support, new product support and vending and cooler equipment placement. The nature and type of programs, as well as the level of funding, vary annually. Additionally, under a shared services agreement, we obtain various services from PepsiCo, which include services for information technology maintenance and the procurement of raw materials. We also provide services to PepsiCo, including facility and credit and collection support. Because we depend on PepsiCo to provide us with concentrate which we use in the production of CSDs and non-carbonated beverages, bottler incentives and various services, changes in our relationship with PepsiCo could have a material adverse effect on our business and financial results. For further information about our relationship with PepsiCo and its affiliates see Note 15 in the Notes to Consolidated Financial Statements. These excerpts taken from the PBG 10-K filed Feb 27, 2008. OUR
RELATIONSHIP WITH PEPSICO
PepsiCo is a related party due to the nature of our franchise
relationship and its ownership interest in our company. More
than 80 percent of our volume is derived from the sale of
brands from PepsiCo. At December 29, 2007, PepsiCo owned
approximately 35.2 percent of our outstanding common stock
and 100 percent of our outstanding class B common
stock, together representing approximately 41.7 percent of
the voting power of all classes of our voting stock. In
addition, at December 29, 2007, PepsiCo owned
6.7 percent of the equity of Bottling LLC. We fully
consolidate the results of Bottling LLC and present
PepsiCo’s share as minority interest in our Consolidated
Financial Statements.
On March 1, 2007, together with PepsiCo we formed PR
Beverages Limited (“PR Beverages”), a venture that
will enable us to strategically invest in Russia to accelerate
our growth. PBG contributed its business in Russia to PR
Beverages, and PepsiCo entered into bottling agreements with PR
Beverages for PepsiCo beverage products sold in Russia on the
same terms as in effect for PBG immediately prior to the
venture. PepsiCo also granted PR Beverages an exclusive license
to manufacture and sell the concentrate for such products.
We fully consolidate PR Beverages into our financial statements
and record minority interest expense for PepsiCo’s
40 percent share of the venture’s net income.
Increases in gross profit and operating income resulting from
the consolidation of the venture are offset by minority interest
expense related to PepsiCo’s share. Minority interest
expense is recorded below operating income. For further
information about PR Beverages see Note 6 in the Notes to
Consolidated Financial Statements.
Our business is conducted primarily under beverage agreements
with PepsiCo, including a master bottling agreement, non-cola
bottling agreements, distribution agreements and a master syrup
agreement. These agreements provide PepsiCo with the ability, at
its sole discretion, to establish prices, and other terms and
conditions for our purchase of concentrates and finished
products from PepsiCo. PepsiCo provides us with bottler funding
to support a variety of trade and consumer programs, such as
consumer incentives, advertising support, new product support
and vending and cooler equipment placement. The nature and type
of programs, as well as the level of funding, vary annually.
Additionally, under a shared services agreement, we obtain
various services from PepsiCo, which include services for
information technology maintenance and the procurement of raw
materials. We also provide services to PepsiCo, including
facility and credit and collection support.
Because we depend on PepsiCo to provide us with concentrate
which we use in the production of carbonated soft drinks and
non-carbonated
beverages, bottler incentives and various services, changes in
our relationship with PepsiCo could have a material adverse
effect on our business and financial results.
For further information about our relationship with PepsiCo and
its affiliates see Note 13 in the Notes to Consolidated
Financial Statements.
21
Table of Contents
PepsiCo is a related party due to the nature of our franchise relationship and its ownership interest in our company. More than 80 percent of our volume is derived from the sale of brands from PepsiCo. At December 29, 2007, PepsiCo owned approximately 35.2 percent of our outstanding common stock and 100 percent of our outstanding class B common stock, together representing approximately 41.7 percent of the voting power of all classes of our voting stock. In addition, at December 29, 2007, PepsiCo owned 6.7 percent of the equity of Bottling LLC. We fully consolidate the results of Bottling LLC and present PepsiCo’s share as minority interest in our Consolidated Financial Statements. On March 1, 2007, together with PepsiCo we formed PR Beverages Limited (“PR Beverages”), a venture that will enable us to strategically invest in Russia to accelerate our growth. PBG contributed its business in Russia to PR Beverages, and PepsiCo entered into bottling agreements with PR Beverages for PepsiCo beverage products sold in Russia on the same terms as in effect for PBG immediately prior to the venture. PepsiCo also granted PR Beverages an exclusive license to manufacture and sell the concentrate for such products. We fully consolidate PR Beverages into our financial statements and record minority interest expense for PepsiCo’s 40 percent share of the venture’s net income. Increases in gross profit and operating income resulting from the consolidation of the venture are offset by minority interest expense related to PepsiCo’s share. Minority interest expense is recorded below operating income. For further information about PR Beverages see Note 6 in the Notes to Consolidated Financial Statements. Our business is conducted primarily under beverage agreements with PepsiCo, including a master bottling agreement, non-cola bottling agreements, distribution agreements and a master syrup agreement. These agreements provide PepsiCo with the ability, at its sole discretion, to establish prices, and other terms and conditions for our purchase of concentrates and finished products from PepsiCo. PepsiCo provides us with bottler funding to support a variety of trade and consumer programs, such as consumer incentives, advertising support, new product support and vending and cooler equipment placement. The nature and type of programs, as well as the level of funding, vary annually. Additionally, under a shared services agreement, we obtain various services from PepsiCo, which include services for information technology maintenance and the procurement of raw materials. We also provide services to PepsiCo, including facility and credit and collection support. Because we depend on PepsiCo to provide us with concentrate which we use in the production of carbonated soft drinks and non-carbonated beverages, bottler incentives and various services, changes in our relationship with PepsiCo could have a material adverse effect on our business and financial results. For further information about our relationship with PepsiCo and its affiliates see Note 13 in the Notes to Consolidated Financial Statements. 21 Table of Contents | EXCERPTS ON THIS PAGE:
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