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WIKI ANALYSIS| This company has recently been acquired or received a credible acquisition offer. |
PepsiAmericas, Inc. (NYSE: PAS) is the second largest bottler of Pepsi-Cola products. It is licensed to produce PepsiCola carbonated and non-carbonated beverages, like Pepsi and Mountain Dew, as well as Cadbury-Schweppes Yoohoo. PAS also produces a number of other beverages under its own subsidiaries. PepsiAmericas operates in 15 countries around the world[1] , mainly Central and Eastern Europe and the Carribean, including 19 states throughout the U.S.
The company is dependent on the U.S. and the Caribbean for the majority of its sales[2]. PAS is also subject to increasing raw materials costs, which are the main factors to its overall business. For example, PAS uses aluminum for its soft-drink cans, as well as plastics for its soft-drink bottles.
On April 20, 2009, Pepsico (PEP) offered to acquire PepsiAmericas in a stock and cash deal. Under the terms of the offer, PepsiAmericas shareholders will receive $11.64 in cash and .223 Pepsico (PEP) shares per share of PAS.[3] Pepsico (PEP) already owns 43% of the bottler and hopes to streamline manufacturing and distribution through the acquisition.
Business Overview
PepsiAmericas Inc. is the second largest producer, seller, and distributor of PepsiCo beverages, behind Pepsi Bottling Group (PBG). It operates in three geographic segments: the U.S. (Midwest), Central and Eastern Europe (CEE), and the Caribbean. Its geographic coverage lets it serve close to 200 million customers[4].
Products
PepsiAmericas sells a variety of carbonated and non-carbonated beverages. Its main products are carbonated soft-drinks, as its top selling products are Pepsi, Diet Pepsi, and Mountain Dew.
- Eighty percent of PAS's U.S. sales are carbonated drinks[5], but its other products are becoming increasingly popular.
- Its other popular beverage products include: Aquafina water, 7UP, Lipton Iced Teas, Malta Polar, Slice, and Desnoes and Geddes.
It also sells and distributes brands from other beverage companies (such as Cadbury Schweppes (CSG)), as well as some of its own brands (including acquired companies). It also distributes snack foods in parts of the Caribbean and CEE through an agreement with FritoLay, a PepsiCo subsidiary.
Competition
For the most part PAS doesn't compete directly with other bottlers.
Other companies that provide similar products and services are as follows:
- Coca-Cola Company (KO) is the leading non-alcoholic beverage company in the U.S.[6] . Coca-Cola's three largest bottlers are Coca-Cola Enterprises (CCE) (the largest bottler in the world), Coca Cola Femsa S.A.B. de C.V. (KOF), and Coca-Cola Bottling Co. Consolidated (COKE).
- Cadbury Schweppes (CSG) is both a competitor and an ally because PAS has an agreement with Cadbury to manufacture some of its beverages, like Yoohoo. It has a small percentage of the U.S. non-alcoholic beverage market, as beverages are not its main operation (Cadbury is known for chocolate).
References
- ↑ | PepsiAmericas Investors, "Overview"
- ↑ PEP 2008 10-K pg. 106
- ↑ PepsiCo Makes ‘About-Face’ With $6 Billion Offer.
- ↑ PepsiAmericas Inc. 2007 Annual Report, "Business", p. 4
- ↑ PepsiAmericas Inc., 04/28/2008 Morningstar Analyst Report, "Mature Markets Crimp Pepsi Bottlers", p. 1
- ↑ | Yahoo Finance: Coca-Cola Co., "Competitors"
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