SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
July 24, 1998 (July 20, 1998)
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Date of Report (Date of earliest event reported)
PepsiCo, Inc.
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(Exact name of registrant as specified in its charter)
North Carolina
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(State or other jurisdiction of incorporation)
1-1183 13-1584302
(Commission File Number) (IRS Employer Identification No.)
700 Anderson Hill Road, Purchase, New York 10577
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (914) 253-2000
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Item 5. Other Events.
The information contained in Exhibit 20 hereto is incorporated herein by
reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
20 Press Release dated July 20, 1998 from PepsiCo, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 24, 1998 PepsiCo, Inc.
By: LAWRENCE F. DICKIE
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Lawrence F. Dickie
Vice President,
Associate General Counsel
and Assistant Secretary
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INDEX TO EXHIBITS
Exhibit No. Description Page
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20 Press release dated July 20, 1998 from 4
PepsiCo, Inc.
EXHIBIT 20
PEPSICO TO ACQUIRE TROPICANA,
WORLD LEADER IN BRANDED JUICES, FROM SEAGRAM
PURCHASE, N.Y., July 20 -- PepsiCo, Inc. announced today that it will buy the
global Tropicana juice business from The Seagram Company Ltd. for $3.3 billion
in cash.
With 1997 revenues of nearly $2 billion, Tropicana is the world's largest
marketer and producer of branded juices. Its portfolio includes many of the best
known trademarks in the industry, including Tropicana Pure Premium, Season's
Best and Dole. Tropicana Pure Premium, the company's leading trademark, is among
the 10 largest food brands sold in U.S. grocery stores.
Tropicana, based in Bradenton, Fla., is also one of the world's fastest growing
major juice companies. Its operating income has grown at a compounded annual
rate of about 15% over the last five years.
"Tropicana is an absolutely terrific company, the best in the business," said
Roger Enrico, chairman and chief executive officer of PepsiCo. "Its talented
people, powerful brands, top-quality products and exceptionally strong position
in the growing juice market make it a wonderful complement to PepsiCo's existing
snack and beverage businesses. As a new division of PepsiCo, Tropicana will be a
very important part of our long-term growth strategy."
Enrico said that Tropicana will dramatically expand PepsiCo's beverage presence
into the morning "daypart," where consumption of PepsiCo's traditional soft
drinks is relatively low. Tropicana also will significantly strengthen the
portfolio of products PepsiCo can offer its millions of retail, vending and food
service customers.
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"Given PepsiCo's broad experience in developing, manufacturing, marketing and
distributing both food and beverage products, Tropicana will be a great fit,"
Enrico said.
In the $16 billion U.S. juice and juice beverage industry, Tropicana is the
national leader of the chilled juice segment. It has a particularly large share
in the fastest growing part of that segment, chilled not-from-concentrate juice,
which has grown by more than 8% annually since 1993.
Outside the U.S. Tropicana holds leading positions in the chilled orange juice
industries in Belgium, Canada, France and the United Kingdom, which together
have enjoyed rapid growth, with annual industry sales growth of nearly 12% for
chilled orange juice and 20% for chilled not-from-concentrate orange juice. The
company also has expanding businesses in Japan, China, Taiwan and Hong Kong.
In addition to Tropicana Pure Premium, Season's Best and Dole, the company's
portfolio includes Tropicana Pure Tropics 100% juice products and Tropicana
Twister juice beverage products in the United States and Fruvita chilled and
Hitchcock shelf-stable juices and Looza nectars and juices in Europe.
Tropicana's Copella Fruit Juices Ltd. sells the most popular
not-from-concentrate apple juice in the United Kingdom.
The transaction, which is subject to Hart-Scott-Rodino and other customary
regulatory approvals, is expected to close by the end of August. Lehman Brothers
served as financial adviser to PepsiCo.
PepsiCo consists of Pepsi-Cola Company, the world's second largest beverage
company, and Frito-Lay Company, the world's largest maker of salty snacks.
PepsiCo's 1997 revenues were $21 billion.
