Ratings reflect PepsiCo Inc.'s balanced business portfolio of strong positions in the stable and cash-generative soft-drink industry, and faster-growing juice and snack-food industries. PepsiCo is the world's second-largest manufacturer of soft-drink concentrates and syrups, and holds the number-one position in the U.S. in both the chilled orange juice and snack-chip markets. PepsiCo's recent purchase of Quaker Oats Co. (Quaker) will provide the company with a very strong position in the growing sports drink market, as well as a competitive position in the hot and cold cereal markets. Ratings also incorporate PepsiCo's moderate financial profile and unique relationship with its two largest bottlers, The Pepsi Bottling Group (PBG) and PepsiAmericas Inc. (PA, formerly Whitman Corp. before the November 2000 acquisition of
