9 PepsiCo's Diversification Strategy in 2015 connect JOHN E. GAMBLE Texas A&M University-Corpus Christi DAVID L. TURNIPSEED University of South Alabama PepsiCo was the world's largest snack and beverage company, with 2014 net revenues of approximately $66.7 billion. The company's portfolio of businesses in 2015 included Frito-Lay salty snacks, Quaker Chewy granola bars, Pepsi soft-drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel SoBe, Quaker Oatmeal, Cap'n Crunch, Aquafina, Rice-A-Roni, Aunt Jemima pancake mix, and many other regularly consumed products. The company viewed the lineup as highly complementary since most of its products could be consumed together. For example, Tropicana orange juice might be consumed during breakfast with Quaker Oatmeal, and Doritos and a Mountain Dew might be part of someone's lunch. In 2015, PepsiCo's business lineup included 22 $1 billion global brands The company's top managers were focused on sustaining the impressive performance through strategies keyed to product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. Newly introduced products such as Mountain Dew KickStart, Tostitos Cantina tortilla chips, Quaker Real Medleys, Starbucks Refreshers, and Gatorade Energy Chews accounted for 15 to 20 percent of all new growth in recent years. New product innovations that addressed consumer health and wellness concerns were important contributors to the company's growth, with PepsiCo's better-for you and good-for-you products becoming focal points in the company's new product development initiatives. In accounted for about 20 percent of the company's net revenue 2014, PepsiCo's nutrition business 9 PepsiCo's Diversification Strategy in 2015 connect JOHN E. GAMBLE Texas A&M University-Corpus Christi DAVID L. TURNIPSEED University of South Alabama PepsiCo was the world's largest snack and beverage company, with 2014 net revenues of approximately $66.7 billion. The company's portfolio of businesses in 2015 included Frito-Lay salty snacks, Quaker Chewy granola bars, Pepsi soft-drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel SoBe, Quaker Oatmeal, Cap'n Crunch, Aquafina, Rice-A-Roni, Aunt Jemima pancake mix, and many other regularly consumed products. The company viewed the lineup as highly complementary since most of its products could be consumed together. For example, Tropicana orange juice might be consumed during breakfast with Quaker Oatmeal, and Doritos and a Mountain Dew might be part of someone's lunch. In 2015, PepsiCo's business lineup included 22 $1 billion global brands The company's top managers were focused on sustaining the impressive performance through strategies keyed to product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. Newly introduced products such as Mountain Dew KickStart, Tostitos Cantina tortilla chips, Quaker Real Medleys, Starbucks Refreshers, and Gatorade Energy Chews accounted for 15 to 20 percent of all new growth in recent years. New product innovations that addressed consumer health and wellness concerns were important contributors to the company's growth, with PepsiCo's better-for you and good-for-you products becoming focal points in the company's new product development initiatives. In accounted for about 20 percent of the company's net revenue 2014, PepsiCo's nutrition business