77476--2/22/2010--PEPSICO

related topics

{cost, operation, labor}

{cost, regulation, environmental}

{operation, natural, condition}

{customer, product, revenue}

{operation, international, foreign}

{system, service, information}

{product, market, service}

{regulation, change, law}

{personnel, key, retain}

{capital, credit, financial}

{condition, economic, financial}

{competitive, industry, competition}

{cost, contract, operation}

{financial, litigation, operation}

Risks Relating to the Company and our Business Demand for our products may be adversely affected by changes in consumer preferences and tastes or if we are unable to innovate or market our products effectively. Any damage to our reputation could have an adverse effect on our business, financial condition and results of operations. Trade consolidation, the loss of any key customer, or failure to maintain good relationships with our bottling partners could adversely affect our financial performance. If we are unable to hire or retain key employees or a highly skilled and diverse workforce, it could have a negative impact on our business. Our performance could be adversely affected as a result of unstable political conditions, civil unrest or other developments and risks in the countries where we operate or if we are unable to grow our business in developing and emerging markets. Changes in the legal and regulatory environment could limit our business activities, increase our operating costs, reduce demand for our products or result in litigation. If we are not able to build and sustain proper information technology infrastructure, successfully implement our ongoing business transformation initiative or outsource certain functions effectively our business could suffer. The global economic downturn has resulted in unfavorable economic conditions and increased volatility in foreign exchange rates and may have an adverse impact on our business results or financial condition. Our performance could suffer if we are unable to compete effectively. Our operating results may be adversely affected by increased costs, disruption of supply or shortages of raw materials and other supplies. Disruption of our supply chain could have an adverse impact on our business, financial condition and results of operations. Climate change, or legal, regulatory or market measures to address climate change, may negatively affect our business and operations. Risks Relating to the Mergers Failure to complete the PBG Merger and the PAS Merger may adversely affect our results of operations and prevent us from realizing the full extent of the benefits and cost savings expected from either or both of the PBG Merger and the PAS Merger. After completion of the Mergers, we may fail to realize the anticipated cost savings and other benefits expected therefrom, which could adversely affect the value of our common stock or other securities. The Mergers are subject to the receipt of certain required clearances or approvals from governmental entities that could prevent or delay their completion or impose conditions that could have a material adverse effect on us. Following completion of the Mergers, a greater portion of our workforce will belong to unions. Failure to successfully renew collective bargaining agreements, or strikes or work stoppages could cause our business to suffer. Any downgrade of our credit rating could increase our future borrowing costs.

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77476--2/22/2010--PEPSICO_INC