PepsiCo eyes western Chinese markets for 10-12 new manufacturing plants; announcement comes on heels of strategic licensing and distribution agreement with Tingyi-Asahi Beverages Holding
November 10, 2011
– PepsiCo, currently fourth in the soft drink market in China with a 30-year total investment of 10 billion yuan (US$1.57 billion) into the region, announced it intends to expand its presence in western China with 10 to 12 new manufacturing plants for soft drinks, non-carbonated beverages and snacks, China Daily reported Nov. 10.
PepsiCo will focus its expansion plans over the next three to five years on the six or seven provinces with no Pepsi production in the region, in areas such as Xinjiang and Tibet.
The announcement follows a strategic agreement with Tingyi-Asahi Beverages Holding (TAB) to manufacture, sell and distribute PepsiCo’s soft drinks and Gatorade-branded products, while TAB will license the Tropicana name for its juice products.
PepsiCo is fourth in the Chinese soft drink market with a 5.5% stake, with Coca-Cola in first at a 16.8% share. TAB holds second place with 14.4%.
The primary source of this article is China Daily, Beijing, China, Nov. 10, 2011.