Beverage News

PepsiCo to invest $2.5 billion in China over next three years

May 25, 2010
/ Print / Reprints /
ShareMore
/ Text Size+

PepsiCo, Purchase, N.Y., plans to invest an additional $2.5 billion in China during the next three years. The newly announced investment is in addition to the $1 billion investment the company announced in 2008, which will be completed this year. The new investment will be allocated to a variety of projects, including new manufacturing facilities, a significant increase of the company's research and development operations, expanded agricultural development and brand-building initiatives, the company says.

"I am delighted to announce that over the next three years we expect to invest $2.5 billion in our food and beverage businesses in China," said PepsiCo Chairwoman and Chief Executive Officer Indra Nooyi, in a statement. "This investment reflects very clearly our great confidence in China and our long-term commitment to this very important, growing market. We look forward to continuing to evolve our business in China and offer Chinese consumers a full portfolio of foods and beverages ranging from soft drinks and juices to oatmeal and savory snacks."

PepsiCo plans to open 10 to 12 new plants in China to manufacture soft drinks, non-carbonated beverages and snacks and will install additional production lines in existing facilities. Consistent with the company's strategy to expand in interior and western China, PepsiCo will open plants in the provinces of Fujian, Gansu, Henan and Yunnan in the next two years. All new plants will meet LEED standards for environmental design, following the model of the company's Chongqing beverage plant, which opened last year, PepsiCo says. The plant is the first LEED certified beverage plant built in China and uses 22 percent less water and 23 percent less energy than the average PepsiCo plant in China.

PepsiCo also plans to broaden its portfolio of Chinese-designed and developed products. Current beverage offerings include Tropicana Guo Bin Fen juices and Cao Ben Le drinks, which are inspired by traditional Chinese medicine. To accelerate expansion of its product portfolio, PepsiCo will build a research and development center in China to develop products for all of Asia.

PepsiCo currently operates 27 beverage and food plants and five farms throughout China and employs more than 20,000 people in the country.

 Did you enjoy this article? Click here to subscribe to Beverage Industry.  

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Dinner with Tequila Don Julio

Diageo is taking its Tequila Don Julio brand on the road this summer with a rolling Airstream Speakeasy mobile craft cocktail bar. The team stopped in Chicago on July 29 to share some specialty tequila cocktails paired with food from Chicago restaurants Honey Butter Fried Chicken and The Radler as well as dessert venues Black Dog Gelato and Baker Miller. (Photos by Jennifer Haderspeck)

2/18/15 2:00 pm EST

A Healthy Future: Analyzing the latest health and wellness trends in the beverage market

The beverage marketplace continues to evolve to meet new trends and regulations. Our expert speakers will share with you their insight on what health and wellness topics will be paramount for the future success in the beverage industry.

Podcasts

Gert van Manen, president of iTi Tropicals Inc., shares his insights on the U.S. coconut water market. Citing research from Krueger Food Laboratories, he also supplies information highlighting the difference between products that declare their added sugars and those that do not.

Beverage Industry Magazine

BI January 2015 cover

2015 January

The January 2015 Beverage Industry includes a cover story on our bottler of the year, Pepsi-Cola Bottling Co. of Luverne, as well as articles about juice drinks, the 2015 New Product Development Outlook, and more. Check it out today!

Table Of Contents Subscribe

Flavors

What anticipated top-selling flavor do you think will be the most successful in 2015?
View Results Poll Archive

THE BEVERAGE INDUSTRY STORE

cleaning-in-place-dairy-foo.gif
Cleaning-in-Place: Dairy, Food and Beverage Operations, 3rd Edition

This book addresses the principles of cleaning operations, water supply issues and the science of detergents and disinfectants.

More Products

Beverage Insider eNewsletter

Are you an Insider? Subscribe to Beverage Industry’s weekly e-newsletter to receive news headlines, new product information and magazine highlights.   

STAY CONNECTED

facebook40 twitter    youtubelinkedgoogle+ icon 40px

Webinars

Beverage Industry Webinars are an easy, effective and convenient way to get educated and informed on the latest industry trends and topics. All Webinars are FREE unless indicated. For more information, check out our Events page!