PepsiCo, PBG make major Russian investment

July 7, 2009
/ Print / Reprints /
ShareMore
/ Text Size+

PepsiCo and Pepsi Bottling Group announced a plan this week to invest $1 billion in Russia over three years. The companies say that brings their cumulative investment in Russia to more than $4 billion as part of the effort to expand in emerging markets.
 
"This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market," PepsiCo Chairman and Chief Executive Officer Indra Nooyi said in a statement.
 
Nooyi is in Russia this week to open a new bottling plant outside Moscow, and to join a meeting of business leaders convened by Presidents Medvedev and Obama. The company says the investment in Russia will be used to expand manufacturing and distribution capacity. In addition to the new beverage facility opening this week in Domodedovo, a new snack manufacturing plant is expected to open later this year in the southern city of Azov.
 
PepsiCo and PBG say they also are planning to build a state-of-the-art warehousing and distribution infrastructure for the Lebedyansky juice business.
 
"Russia is a very attractive growth market," said PBG Chairman and Chief Executive Officer Eric Foss. "The investments we're making in our Russia business are creating new jobs, providing us with the flexibility to produce a wider range of beverage offerings for consumers, and enabling us to better serve our valued retail partners. Our new plant in Domodedovo reflects our serious commitment to future expansion in Russia. We're looking forward to playing an active role in the country's business community for many years to come."
 
When operating at full capacity, the Domodedovo plant will be larger than any bottling plant 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. The plant features a state-of-the-art water filtration system that uses ozone molecules for purification. It also is the first PBG plant in Russia equipped to produce ultra-light PET plastic bottles on all bottling lines, with labeling technology that uses no glue, less plastic and less energy than traditional labels.

 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

International Pineapple Day at Bahama Breeze

In celebration of International Pineapple Day on April 2, Bahama Breeze locations across the country invited the media and consumers to celebrate with cocktails that feature the tropical flavor of the pineapple. (Photos by Liz Parker and Jennifer Haderspeck)

10/10/13 2:00 pm EDT

Ditch the weighting agents: A cost effective solution for delivering flavors and actives

Available On Demand Learn how to reduce costs and energy use by enabling high oil load emulsions, eliminating the need for weighting agents like brominated vegetable oil (BVO).

Beverage Industry Magazine

BI April 2014 cover

2014 April

The April 2014 Beverage Industry includes a cover story on moonshine, as well as articles about CSD brands, whiskey, and more. Check it out today!

Table Of Contents Subscribe

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.   

Spirits Segments

Which spirits segment will perform the best in 2014?
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

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!

STAY CONNECTED

facebook40 twitter    youtubelinked