Consumers want choice. They live active lifestyles that — on any given day — take them from a classroom or office to a soccer field or gym and then on to home or a restaurant. They want beverages that refresh, hydrate and invigorate. And now, more than ever, they demand products that offer the most value for their money — high quality at a reasonable price that delivers the benefits they expect.

The Pepsi Bottling Group is determined to quench consumers’ thirst with the right products at the right time and place. Three core principles will guide our efforts in building our stable of brands:

• First, we will fill portfolio gaps with the goal of selling the number one or number two beverage in every Liquid Refreshment Beverage (LRB) category in which we compete. An example of this is the addition of the Crush brand to our U.S. lineup in 2009, including such flavors as Orange Crush, Diet Orange Crush and Grape Crush. Flavored carbonated soft drinks now account for almost half of all Carbonated Soft Drink (CSD) sales in the U.S., so this is an exciting opportunity for PBG, which has already helped build Crush into one of the leading flavored soft drinks in Canada.
• Second, PBG will access white space by entering LRB categories that present new opportunities for topline and profit growth. With the emergence of value-added protein drinks, for example, PBG last year announced an agreement to distribute Muscle Milk in the U.S., an innovative beverage enabling fast recovery from exercise, fat burning and lean muscle growth.
• Third, building scale will be a top priority as we look to leverage the competitive advantage of our Direct-Store-Delivery (DSD) system. In 2008, PBG and PepsiCo announced a joint acquisition of Lebedyansky, the leading player in Russia’s high-margin juice segment.

PBG enjoys a position of strength in the LRB category with a robust cola portfolio, strong flavors in each of our countries, leading Non-Carb Beverages (NCBs) and bottled waters. Now we are excited to continue the evolution of our portfolio with new brands and compelling product innovations that build our customers’ businesses and enrich the lives of consumers around the world.