[Financial Highlights]
[Letter from the Chairman]
[Worldwide Snacks]
[Worldwide Beverages]
[Quaker Foods North America]
[PepsiCo Shopping List]
[Corporate Citzenship]
[Principal Divisions & Officers]
[Board of Directors]
[Common Stock Information/Stock Performance]
[Shareholder Information]
[Financial Review]
Quaker Foods North America

Quaker Foods North America

Quaker Foods North America (QFNA) — with beloved brands ranging from Quaker Oatmeal and Life cereal to Cap'n Crunch and Aunt Jemima syrup — produced solid results overall.

Volume was down slightly from the prior year, as expected. Revenue grew 1%. Operating profit was up 6%.

QFNA, which continued to generate healthy cash flow, saw its greatest growth driven by innovation. That was particularly evident in hot cereals. Quaker Oatmeal had another outstanding year, with sales up 10%, as new products like Cinnamon Roll, Quaker Oatmeal Nutrition for Women and Quaker Instant Oatmeal Express proved big hits. Those innovations drove healthy hot cereal volume growth despite an unusually warm autumn, when hot cereal consumption typically rises. It was the fourth warmest fall in more than 100 years.

Fierce competition in ready-to-eat cereals, however, offset the growth in other parts of QFNA. That competition, in both pricing and promotions, led to a modest decline in ready-to-eat cereal volume and revenue. Looking ahead, innovation is expected to drive positive volume growth in 2002, as QFNA introduces a variety of new products, including new varieties of Rice-A-Roni, Pasta Roni, a new Cap'n Crunch line extension and new hot cereal flavors.