Friday, snack and beverage company PepsiCo, Inc. (PEP) and consumer goods provider Unilever Plc (UL, UNLYF.PK, UN.L,ULVR.L) announced a deal to expand their international partnership for the marketing and distribution of ready-to-drink tea products under the Lipton brand.Under the deal terms, each company will continue to own 50% of the joint venture, with the Purchase, New York-based PepsiCo paying the U.K.-based Unilever an undisclosed amount for its share of the businesses in new markets. The transaction is expected to come into effect from the beginning of January 2008.The new agreement builds on the companies' original 1991 North American joint venture, Pepsi Lipton Tea Partnership, or PLTP, and the subsequent 2003 joint venture, Pepsi Lipton International, or PLI. PLTP established Unilever's Lipton as the leading ready-to-drink tea brand in the U.S. Aided by the PLI joint venture, Lipton ready-to-drink tea business currently spans more than 40 countries, with strong double-digit volume growth. The new expanded deal will add 11 countries to the existing partnership. The businesses in these countries, which include Germany, Italy, France, Netherlands, Switzerland, Austria, Belgium, Portugal, Korea, Taiwan, and South Africa, had combined systems sales to the trade of around EUR 300 million in 2006. As per the companies, a mechanism has been established for PLI to open new ready-to-drink tea markets. The new agreement will more than double the volume of the current PLI joint venture, capturing more growth opportunities. The new deal also completes the partnership effectively, the companies noted. While commenting on the expansion of the partnership, Michael White, chief executive officer of PepsiCo International and vice chairman of PepsiCo, said, Lipton is one of the world's great beverage brands, and will continue to be a key pillar of our strategy to offer international consumers a portfolio of convenient beverages to address a wide range of needs."Meanwhile, Vindi Banga, Unilever's president for Foods, said the agreement with PepsiCo gives the company an opportunity to build on the successful joint venture to date. It provides an excellent opportunity to realize the long-term potential of the Lipton ready-to-drink brand, and Pepsi's expertise in the drinks sector will help us drive innovations faster and more competitively," Banga added. In early September, PepsiCo announced its plans to expand its non-carbonated portfolio in the U.S. by launching four new mega-brands. The company, along with PepsiAmericas Inc. (PAS), recently finalized the joint purchase of 80% of Ukraine-based juice company Sandora, LLC for $542 million plus assumed debt. The joint venture expects to acquire the remaining 20% interest in Sandora in November 2007.For the latest second quarter, PepsiCo's profit rose 13%, driven mainly by strong international revenue growth on higher volume of snacks and beverages. The company's net income for the quarter was $1.56 billion, compared to $1.38 billion in the prior-year quarter. Earnings per share increased 15% to $0.94 from $0.81 a year earlier. Quarterly net revenue came in at $9.61 billion, up 10% from $8.71 billion in the previous year.PepsiCo's rival, Northfield, Illinois-based Kraft Foods, Inc. (KFT, KFT.L) has recently announced agreements with Starbucks Corp. (SBUX, STB.L) and Bosch Corp. (BCSHF.PK) to improve the sales of its Tassimo brand hot beverage system. Under the deal, Starbucks Coffee Co. has agreed to include select varieties of its popular Starbucks coffee to the Tassimo beverage lineup in the U.S. and Canada. Meanwhile, Bosch Household Appliances will launch new Bosch Tassimo brewers in mid-2008.Unilever's second-quarter net profit attributable to shareholders' equity was EUR 1.144 billion, or EUR 0.38 per share, higher than EUR 986 million, or EUR 0.34 per share in the same quarter of last year. The company's second-quarter turnover reached EUR 10.53 billion, up from EUR 10.26 billion in the year-ago quarter.PEP closed Thursday's regular trade at $69.88, up $0.30, on a volume of 6.85 million shares. UL traded at $32.63 on Thursday on the NYSE, while UNLYF.PK closed at $32 on September 12. On the LSE, ULVR.L is trading at 1,604 pence, down 7 pence or 0.43%, on a volume of 2.49 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.