Published: July 9, 2009
PepsiCo, one of the world's largest food and beverage companies, has announced plans to invest US$1bn in Russia over three years, together with its partner The Pepsi Bottling Group (PBG). The investment will bring the cumulative investment in Russia by PepsiCo and PBG to over US$4bn.
The investment in Russia is funding various programmes to expand manufacturing and distribution capacity. In addition to the new beverage facility opening in Domodedovo, a new snacks manufacturing plant is expected to open later this year in the southern city of Azov.
"I am delighted to announce that over three years we expect to invest US$1bn in our beverage and food businesses in Russia," says PepsiCo chairman and CEO Indra Nooyi. "This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market."
PepsiCo and PBG also are planning significant investments to build a state-of-the-art warehousing and distribution infrastructure for the Lebedyansky juice business. And PepsiCo, the largest private user of potatoes grown in Russia, plans to continue its investment in local agriculture.
These investments mark 50 years since Pepsi-Cola was introduced in Moscow at the 1959 American National Exhibition and continues a major expansion effort by PepsiCo and PBG that began in the late 1990s with the opening of the companies' first beverage plant of the modern Russian era, followed by the opening of PepsiCo's first snack manufacturing facility in Kashira in 2002. In 2008, PepsiCo and PBG invested approximately US$2bn to acquire Lebedyansky, Russia's leading branded juice company.
When operating at full capacity, the Domodedovo plant will be larger than any bottling plant currently in PepsiCo's global system. It will produce a range of beverage brands, including Pepsi-Cola, Aqua Minerale water and ready-to-drink Lipton Iced Teas (through PepsiCo's joint venture with Unilever) for sale by retailers across Russia as well as neighbouring CIS countries.
PepsiCo and PBG comprise one of the largest food and beverage providers in Russia, and are the leading producers of juices and nectars, ready-to-drink teas, bottled water and savoury snacks across the country.