PepsiCo, Inc. (NYSE: PEP) owns 22 billion-dollar brands. Most of those brands are in the beverage category and are easily associated with the company. However, unlike its rival, Coca-Cola, PepsiCo has expanded outside of the beverage market with eight total billion-dollar food and snack brands. Adding another brand under its umbrella, on August 20, 2018, PepsiCo announced the acquisition of sparkling water brand SodaStream.

Over half of PepsiCo's global revenue comes from snack and food products. No matter where you travel in the developed world, you are probably only a short distance from a PepsiCo food or beverage item. These are the main companies that have helped contribute to PepsiCo's success during the last 20 years.

Frito-Lay

PepsiCo was formed by the merger of Frito-Lay, Inc. and the Pepsi-Cola Company in 1965. Frito-Lay brought several iconic and profitable snack brands to PepsiCo, including six of today's billion-dollar brands: Cheetos, Doritos, Tostitos, Lay's, Walkers and Fritos. The Frito-Lay line has several other recognizable brands, such as SunChips, Ruffles, Stacy's Pita Chips, Rold Gold pretzels, and baseball stadium favorite Cracker Jack. In fiscal year 2017, Frito-Lay contributed to roughly a quarter of the company’s revenues and its share of the total operating profit was 42 percent. 

Quaker

PepsiCo spent $13.4 billion in 2001 for Quaker Oats, acquiring Gatorade in the process. At the time, Quaker Oats owned Gatorade and was being sought after by three different companies, including both Coca-Cola and PepsiCo. Ultimately, PepsiCo won the bidding war after Coca-Cola's board of directors voted down the deal.

Quaker ended up being a great investment for PepsiCo. Gatorade has grown into a very profitable sports drink brand, and it currently commands 46 percent of the global sports drink market share. PepsiCo's thought process in buying Quaker was to cater to a shift in consumer habits away from sugary soft drinks and over to sports and energy drinks. The healthier shift in consumer tastes also led PepsiCo to decide not to sell Quaker Oats after acquiring it for Gatorade.

Quaker is best known for its oat products. However, the brand also produces granola bars, rice cakes and grits. In addition, it produces non-Quaker brands, such as Aunt Jemima, Rice-A-Roni side dishes, and Cap'n Crunch and Life cereals. Not including Gatorade, the Quaker family produces only 4 percent of PepsiCo's annual revenue.

Tropicana

Before the Quaker acquisition, PepsiCo made another strategic acquisition to capitalize on healthier consumer options. It acquired Tropicana in 1998 for $3.3 billion. Tropicana manufactures fruit and vegetable juice products. After acquiring Tropicana, PepsiCo grew the brand to number one in market share for U.S. juices. Tropicana remains one of PepsiCo's billion-dollar brands despite weak sales.