Pepsi Bottling
Industry: Beverages (Nonalcoholic)

The Pepsi Bottling Group, Inc. (PBG) is a manufacturer, seller and distributor of Pepsi-Cola beverages. The Company has the exclusive right to manufacture, sell and distribute Pepsi-Cola beverages in all or a portion of 41 states and the District of Columbia in the United States, nine Canadian provinces, Spain, Greece, Russia, Turkey and all or a portion of 21 states in Mexico. The beverages sold by PBG include Pepsi-Cola, Mountain Dew, Diet Pepsi, Aquafina, Lipton Brisk, Mountain Dew Code Red, Sierra Mist, Sobe, Dole, Mug, Diet Mountain Dew, Pepsi Twist, Starbucks Frappucino, and, outside the United States, Pepsi-Cola, Mirinda, 7 Up, KAS, Electropura, Aqua Minerale, Manzanita Sol, Squirt, Garci Crespo, Fiesta, Pepsi Light, IVI, Yedigun and Fruko.

Business Summary
The Pepsi Bottling Group, Inc. (PBG) is a subsidiary of PepsiCo, Inc., and is a manufacturer, seller and distributor of Pepsi-Cola beverages. The Company was formed to effect the separation of most of PepsiCo's company-owned bottling businesses. The beverages sold by the Company include PEPSI-COLA, DIET PEPSI, MOUNTAIN DEW, AQUAFINA, SIERRA MIST, DIET MOUNTAIN DEW, LIPTON BRISK, SOBE, STARBUCKS FRAPPUCCINO and TROPICANA JUICE DRINKS. Outside the United States, the Company sells PEPSI-COLA, 7 UP, KAS, MIRINDA and AQUA MINERALE. The Company also has the right in some territories to manufacture, sell and distribute beverages under trademarks that it owns, including ELECTROPURA, EPURA and GARCI CRESPO. PBG has the right to manufacture, sell and distribute Pepsi-Cola beverages in all or a portion of 41 states and the District of Columbia in the United States, nine Canadian provinces, Spain, Greece, Russia, Turkey and all or a portion of 23 states in Mexico.

Financial Summary
For the 36 weeks ended 3 September 2005, the Pepsi Bottling Group's revenues increased 7% to $8.22B. Net income increased 2% to $392M. Revenues reflect volume growth in the U.S., Europe, Canada and Mexico, and a favorable impact from foreign currency translation. Net income was partially offset by increased selling, delivery and administrative expenses due to increases in rasin costs compared to 2004.