Diversified product offerings; Strong market positions; Solid cash flow and; Growing international contribution. Competitive U.S. beverage and cereal markets. Active share repurchase program. Our rating on Purchase, NY-based PepsiCo Inc. reflects the company's balanced portfolio of businesses, with its strong positions in the relatively stable, cash-generating liquid refreshment beverage and snack food industries, and modest financial policy, including its plan to partially fund the proposed acquisitions of Somers, N.Y.-based The Pepsi Bottling Group Inc. (PBG) and Minneapolis, Minn.-based PepsiAmericas Inc. (PAS) with equity. PepsiCo is the world's second-largest manufacturer of soft drink concentrates and syrups, and holds the No. 1 position in the U.S. in the snack food market and several segments of the noncarbonated beverage category. PepsiCo also has
