Pepsi buys back its spinoff

( Letter's like this to employees makes a person wonder if they actually understand, they SELL FRICKIN COLORED WATER, they aren't making medicine that cures anything....)

If they wanna do something revolutionary why don't they BRING BACK PEPSI THROWBACK AND MT DEW THROWBACK...?

Dear PBG Colleagues,

This is an exciting day in our Company's history. A few minutes ago, we announced a definitive agreement to be acquired by PepsiCo in a cash and stock transaction valued at $36.50 per share based on market close on July 31, 2009.

A copy of the press release is attached for your information. You will see that PepsiCo has also reached an agreement to acquire PepsiAmericas, bringing the vast majority of Pepsi's U.S. bottling operations together under a single corporate entity. This landmark transaction will transform PepsiCo's beverage business, providing a strong foundation for sustained growth in the U.S. and internationally, while bolstering operations, distribution and service for the entire blue system. Combining our three companies will enable us to better serve our customers' evolving needs through a more fully integrated supply chain and go-to-market business model, and will create greater opportunities to enhance innovation and choice for consumers - all essential endeavors to win in the marketplace.

In many ways, today's announcement represents a culmination of our accomplishments over the last ten years. In 1999, when we launched PBG as an independent company, we committed to our Rules of the Road and set our sights on cultivating a great place to work, providing outstanding service to our customers, contributing to our communities and creating value for our shareholders. I am extraordinarily proud of our outstanding achievements against these ambitious goals and believe they will always deserve recognition and celebration:

* We have improved customer satisfaction and loyalty year in and year out.
* We have made major strides in building our culture, particularly in the areas of capability, diversity and employee satisfaction.
* We have maintained a strong commitment to our communities through volunteerism and financial and product contributions.
* We have generated strong financial performance - nearly doubling our revenue, more than doubling our operating profit and delivering very strong EPS growth, with a compound annual growth rate of 16 percent.
* And, finally, at $36.50 per share, PBG's stock will have appreciated more than 300 percent since our IPO - creating tremendous shareholder value for PBG investors and far outperforming the market, with the S&P 500 down 22 percent, the Dow down 5 percent and CCE down 37 percent.

All of this success is a direct result of your hard work, dedication and unyielding commitment to running our business with precision and diligence and serving our customers with confidence and passion. For all that you've done to make PBG a most admired company, thank you.

Thank you for making us a market leader with our customers and consumers.

Thank you for making PBG one of the best operating companies in the world.

And thank you for staying true to PBG's mission and values. This is what will define our ten years as a public company and what will propel us into an exciting next chapter of our business.

During the next few weeks and months, we will be working through the integration process and will keep you informed as plans and potential changes are finalized. Our senior management team, and PepsiCo's, are equally committed to implementing a smooth transition, and we are already moving in a very productive direction to achieve that goal. It's important to note that PBG represents the majority of manufacturing and distribution capabilities for the U.S. blue system, so while there will be some changes, our people and operations will be key to the future success of the combined company.

In terms of immediate next steps, there are certain financial procedures and regulatory approvals that this transaction must secure, so we are not yet able to determine an exact closing date. We are hopeful that it can be completed by the end of 2009 or early 2010.

For now, I ask that you remain focused on executing our business plans and delivering a strong finish to the summer selling season. Let's maintain our momentum as we embark on the next phase of our journey.

I want to thank you again for your ongoing commitment to PBG and for continuously and consistently bringing to our customers, communities and each other an Unquenchable Spirit that never ceases to inspire me. This transaction recognizes the value we have built together at PBG over the last ten years and prepares Pepsi's beverage business for a strong future. I am proud of all of you and confident that PBG will thrive as part of PepsiCo.