FONT-SIZE Plus   Neg

PepsiCo And Tingyi Finalize Strategic Alliance In China

PepsiCo, Inc. (PEP) 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."

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Environment ministry of South Korea Thursday ordered Volkswagen Korea to recall 125,522 diesel vehicles on determining actual emissions of nitrogen oxides. The ministry has asked the German automobile maker to pay a fine of 14.1 billion Won or $12.31 million. The company has to submit a recall plan by January 6, 2016. The U.S. Food and Drug Administration has alerted health care professionals and patients of a voluntary recall of compounded multivitamin capsules containing high amounts of Vitamin D3 (Cholecalciferol), distributed nationwide by Glades Drugs in Pahokee, Florida. FDA has received reports of several... Flying is the passion for British aviatrix Tracey Curtis Taylor, and she is now on a solo flight to cross three continents and 23 countries in her own vintage open cockpit biplane. She has already crossed half of her journey from U.K. to Australia with a target to cover 13 thousand miles.
comments powered by Disqus
Trade PEP now with 
Follow RTT