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Business Description
PepsiCo, Inc. manufactures, markets and sells soft drinks and concentrates, and snack foods. PepsiCo and its divisions and subsidiaries operate in three business segments: Worldwide Snacks, Worldwide Beverages and Quaker Foods North America. The Company's snack food business is comprised of two business units: Frito-Lay North America and Frito-Lay International. The Company's beverage business is comprised of three business units: Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International. On August 2, 2001, the Company completed a merger transaction with The Quaker Oats Company (Quaker) whereby Quaker became a wholly owned subsidiary of PepsiCo.

Financial Information
PepsiCo, Inc. manufactures, markets and sells soft drinks and concentrates (Pepsi-Cola, Mountain Dew, Slice, etc.), snack foods (Frito-Lay) and Tropicana branded juices. For the 24 weeks ended 6/15/02, net sales increased 7% to $11.28 billion. Net income increased 13% to $1.54 billion. Revenues benefitted from volume gains across all divisions and increased prices. Net income also reflects a higher operating profit margin due to efficiencies.