Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

PepsiCo And Tingyi Finalize Strategic Alliance In China

RELATED NEWS
Trade PEP now with 
3/31/2012 2:47 AM ET

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
Apple Inc. said Wednesday after the markets closed that its second quarter profit rose 7% from last year, as sales surged and margins improved amid strong sales of its iPhones. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a slightly downbeat revenue forecast for the current quarter. Stocks moved mostly lower during trading on Wednesday, giving back some ground after trending higher over the past several sessions. Selling pressure was relatively subdued, however, limiting the downside for the markets. The major averages all closed in the red, although the tech-heavy Nasdaq underperformed its counterparts by a wide margin. Russian Foreign Minister Sergei Lavrov warned Wednesday that Moscow would retaliate strongly if its "interests" in Ukraine are attacked. He also criticized the Ukrainian administration for relaunching its so-called anti-terrorist operation in the east of the country a day earlier. Lavrov's remarks came in an interview with Russia Today, which published excerpts of the English-language interview to
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.