PBG enjoys a diverse geographic portfolio. Over the last five years, PBG’s international volume represented 72 percent of our total growth. Looking ahead, we will capitalize on opportunities in the U.S. and abroad to bolster our position in growing LRB categories.

U.S. and Canada

While the U.S. was hit hardest by the macroeconomic conditions of 2008, we remain optimistic about both the U.S. and Canada. We are particularly excited about CSDs. PBG will continue to pursue growth organically and through strategic acquisitions. For example, the company recently completed its acquisition of Arizona-based Lane Affiliated Companies, the eighth largest domestic Pepsi bottler, which has expanded PBG’s footprint across contiguous territories in the western states and enabled PBG to better serve our national customers.

Russia

Russia is PBG’s largest territory in Europe and our biggest growth engine globally. PBG is moving forward to expand our presence in the region. In 2008, our joint venture with PepsiCo acquired Sobol-Aqua, a local beverage manufacturer that has accelerated our manufacturing presence as well as our expansion into Siberia and Eastern Russia. In addition, PBG, with PepsiCo, acquired Lebedyansky. These investments demonstrate PBG’s commitment to building our business in this important region.

Turkey

Turkey is also an attractive geography because of its burgeoning economy and large and increasing population. Boasting the youngest population in Europe, with 50 percent of its people under the age of 30, Turkey holds exciting possibilities for the LRB market. In particular, PBG Turkey is focused on improving our operating profit through volume and revenue management and has already made advancements in productivity and training.

Mexico

In 2008, PBG initiated significant changes to our Mexico organization to improve the profitability of our business and prepare for long-term growth. Mexico represents the third largest beverage market in the world with a young population that presents opportunities for the LRB category and PBG.

We are confident that our investments in each of these markets will create growth and long-term value for our shareholders. As always, we are focused on the things that matter most: providing selling and service excellence for our customers and delivering high value products that delight and satisfy consumers.