Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

PepsiCo And Tingyi Finalize Strategic Alliance In China

RELATED NEWS
Trade PEP now with 

PepsiCo, Inc. (PEP: Quote) and Tingyi (Cayman Islands) Holding said they have completed transaction to create a strategic beverage alliance in China, which is anticipated to become the largest beverage market by 2015. The alliance was approved by Tingyi shareholders in February and obtained regulatory approval on March 29, 2012.

As part of the strategic alliance, Tingyi's beverage subsidiary, Tingyi-Asahi Beverages Holding Co. Ltd. or TAB is currently PepsiCo's franchise bottler in China.

TAB noted that it would team up with PepsiCo's current bottlers to manufacture, sell and distribute PepsiCo's carbonated soft drink and Gatorade brands. In addition, PepsiCo and TAB would begin co-branding their respective juice drink brands using the Tropicana brand name under license from PepsiCo. PepsiCo would retain branding and marketing responsibilities for these products.

Under the allianc terms, PepsiCo has contributed its indirect equity interests in its company-owned and joint venture bottling operations in China to TAB and received five percent indirect equity interest in TAB as consideration. Further, PepsiCo stated that it has an option to increase its indirect holding in TAB to 20 percent at its sole discretion by 2015.

PepsiCo and Tingyi alliance is anticipated to create long-term value for both the company shareholders, employees and local bottling partners. PepsiCo's existing JV partners, expects to gain benefits that would enhance business performance in the near-term while maximizing future growth potential.

PepsiCo Chairman and CEO Indra Nooyi commented, "China will soon surpass the United States to become the largest beverage market in the world. As a result of this new alliance with Tingyi, PepsiCo is extremely well positioned for long-term growth in China. By leveraging the complementary strengths of each company, we'll be able to significantly enhance our beverage business in China, reach millions of new consumers throughout the country, and create value for Tingyi and PepsiCo shareholders."

Register
To receive FREE breaking news email alerts for Pepsico Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
A number of major retailers will be open on Thanksgiving for early Black Friday shopping events. Kohl's department stores will kick off Black Friday sales two hours earlier this year, at 6 p.m. Thanksgiving Day, while Macy's, Bon-Ton and Best Buy will open at the same time. J.C. Penney and Sears... Twitter Inc. has replaced its head of product Daniel Graf just six months after luring him over from Google, according to multiple reports. Graf, previously known for his work leading Google Maps, will retain his vice president of product title and work on Twitter's geolocation features, the Wall... LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that its third quarter loss widened slightly from last year, as higher costs and expenses more than offset a 45% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.