Businessweek

tributes various dairy products, including Domik v Derevne, Chudo, and Agusha. AMEA AMEA makes, markets, sells, and distributes various snack food brands, including Lay’s, Chipsy, Kurkure, Doritos, Cheetos and Smith’s through consolidated businesses, as well as through noncontrolled affiliates. AMEA makes, markets, and sells Quaker-branded cereals and snacks. AMEA also makes, markets, sells and distributes beverage concentrates, fountain syrups and finished goods under various beverage brands, including Pepsi, Mirinda, 7UP, Mountain Dew, Aquafina and Tropicana. These branded products are sold to authorized bottlers, independent distributors and retailers. In certain markets, AMEA operates its own bottling plants and distribution facilities. AMEA makes, markets, and sells ready-to-drink tea products through an international joint venture with Unilever (under the Lipton brand name). Further, AMEA licenses co-branded juice products to third-party partners through a strategic alliance with Tingyi (Cayman Islands) Holding Corp. (Tingyi) under the House of Tropicana brand name. Distribution Network The company’s products are brought to market through direct-store-delivery, customer warehouse, and distributor networks. Brands The company owns various trademarks which are essential to its worldwide businesses, including Agusha; Aquafina; Aunt Jemima; Cap’n Crunch; Cheetos; Chester’s; Chipsy; Chudo; Cracker Jack; Diet Mountain Dew; Diet Pepsi; Domik v Derevne; Doritos; Duyvis; Elma Chips; Emperador; Frito-Lay; Fritos; Fruktovy Sad; Frustyle; Gatorade; G2; G Series; Grandma’s; Imunele; Izze; Kurkure; Lay’s; Life; Little House in the Village; Lubimy Sad; Manzanita Sol; Marias Gamesa; Matutano; Mirinda; Miss Vickie’s; Mother’s; Mountain Dew; Müller; Mug; Munchies; Naked; Near East; Paso de los Toros; Pasta Roni; Pepsi; Pepsi Max; Pepsi Next; Propel; Quaker; Quaker Chewy; Rice-A-Roni; Rold Gold; Rosquinhas Mabel; Ruffles; Sabritas; Saladitas; Sakata; Sandora; 7UP and 7UP Free (outside the United States); Santitas; Sierra Mist; Simba; Smartfood; Smith’s; Snack a Jacks; SoBe; SoBe Lifewater; SoBe V Water; Sonric’s; Stacy’s; SunChips; Tonus; Tostitos; Trop 50; Tropicana; Tropicana Pure Premium; Tropicana Twister; Vesely Molochnik; Walkers; and Ya. The company also holds long-term licenses to use trademarks in connection with its products in certain markets, including Dole and Ocean Spray. Joint ventures in which it participates either own or have the right to use certain trademarks, such as Lipton, Müller, Starbucks, and Sabra. Seasonality The company’s businesses are affected by seasonal variations. Its beverage sales are higher during the warmer months and certain food and dairy sales are higher in the cooler months. Weekly beverage and snack sales are generally highest in the third quarter (year ended December 29, 2012) due to seasonal and holiday-related patterns, and generally lowest in the first quarter. Customers The company’s primary customers include wholesale distributors, foodservice distributors, grocery stores, convenience stores, mass merchandisers, membership stores, and authorized independent bottlers. In 2012, its major customer included Wal-Mart Stores, Inc., including Sam’s Club. Competition The company competes with The Coca-Cola Company; Nestlé S.A.; Danone; DPSG; Kellogg Company; General Mills, Inc.; and Mondelçz International, Inc. Research and Development For the year ended December 29, 2012, the company’s research and development costs included $552 million. Regulatory Environment and Environmental Compliance In the United States, the company is required to comply with various laws and regulations, including the Food, Drug and Cosmetic Act; the Food Safety Modernization Act; the Occupational Safety and Health Act; the Clean Air Act; the Clean Water Act; the Resource Conservation and Recovery Act; the Federal Motor Carrier Safety Act; the Lanham Act; various federal and state laws governing competition and trade practices; various federal and state laws and regulations governing equal employment opportunity and its employment relationships, including the Equal Em