Capability, consistency and customer service drive our next generation of growth

As times change, so does PepsiAmericas. In early 2006, we met with customers - large and small - and asked them what they needed from PepsiAmericas. In addition to the great brands and service we already provide, they need segment experts who understand the unique challenges of each sales channel and more centralized contact to streamline the sales and decision-making process. We responded.

As part of Customer Alignment, we redeployed our 10,000-person U.S. sales team to better adapt to the ever-changing marketplace. With a more strategic, data-based customer perspective, we can respond more quickly to marketplace changes. We are further strengthening capabilities around category management and our pricing framework. In addition, our channel sales teams work through fewer layers, reducing our cost structure while increasing effectiveness. In addition, we added resources to the channels that are growing, specifically the On-Premise channel, as more Americans increasingly eat away from home.

To support this dynamic environment, PepsiAmericas invested in training infrastructure and created a Web-based education curriculum that certifies our front-line sales teams and provides in-depth training around products, processes and selling techniques.

We also invested in our international locations in 2006, dedicating more salespeople to support an expanding product portfolio in Central Europe. Most notably, this included more selling time focused on our small format business, which delivered volume growth of more than 12 percent in 2006.

This emphasis on the customer is the hallmark of PepsiAmericas' service commitment.

Customer Alignment. We have rebuilt our U.S. sales organization to better align with our customers, and we have added more selling resources in Central Europe to support our expanding portfolio - both driving improved execution against our strategic priorities.