Pepsi Cola General Bottlers Inc.


Pepsi Americas operates in a strong and exciting industry where our products are a part of everyday life. PepsiAmericas has a broad product portfolio, with Pepsi brands having major representation in the cola, flavor and non-carbonated segments. This industry operates in three distinct geographic regions – Central Europe, the Caribbean and the central corridor of the United States. We make, sell and deliver a broad portfolio of Pepsi-Cola core brands, Cadbury beverages and other national and regional brands in 19 U.S. locations as well as Puerto Rico, Jamaica, Barbados, the Bahamas, Trinidad and Tobago, Poland, Hungary, the Czech Republic and the Republic of Slovakia. In total, the company serves a population of more than 122 million people. PepsiCo, Inc. holds a 41.1 percent equity interest in PepsiAmericas. Currently, 85 percent of PepsiAmericas' revenue comes from our domestic business, where we enjoy medium- to high-share positions in the bulk of our territories. PepsiAmericas has a 22 percent share of the market in Central Europe and 50 percent share of the market in the Caribbean.
We understand that our collective success depends on a healthy balance between the organization's needs and the needs of our employees and their families. We offer many benefits to employees like Education and development, Medical, dental and prescription coverage, Life insurance, Scholarships, Flexible spending accounts, Tuition reimbursement and enhanced career opportunities. Our goal is to ensure that PepsiAmericas earns its place in the highly competitive beverage industry, while leveraging our size and position to bring excellent benefit plans to all our employees. Our performance demonstrated strength in revenue growth and cost management, drove double-digit increases in earnings per share and generated strong cash flow. It was an important year because we demonstrated consistency in our performance, continued emphasis on shareholder returns, and announced our first meaningful acquisition.
The profitability of our international business continued to improve and it has become a more significant contributor to our performance. Central Europe successfully navigated the accession of our markets into the European Union and profitability continued to grow. The Caribbean realized earnings improvement from volume and pricing growth and good control of costs.
We are confident that our plans for product and packaging innovations combined with improved efficiencies will contribute to continued growth in our international business throughout 2005. We expect to increase revenues in carbonated soft drinks and to improve market penetration with an expanding array of non-carbonated beverages throughout the year ahead. In 2005, our objective is to continue the strength and consistency of our performance. To do that, we must reestablish volume growth, moderately increase pricing, invest strategically, and continue to generate strong cash flow. Across PepsiAmericas, we are privileged to have a team of experienced and talented individuals dedicated to achieving this objective.