PepsiCo and P.B.G. to invest $1 billion in Russia
July 06, 2009
by Bakingbusiness Staff
MOSCOW — PepsiCo, Inc. and The Pepsi Bottling Group have announced plans to invest $1 billion in Russia during the next three years.
"I am delighted to announce that over three years we expect to invest $1 billion in our beverage and food businesses in Russia," said Indra Nooyi, chairman and chief executive officer, PepsiCo, Inc. "This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market."
The investment will bring PepsiCo and P.B.G.’s total investment in Russia to more than $4 billion. The efforts are funding various programs to expand manufacturing and distribution capacity. There is a new beverage facility opening this week in Domodedovo and a new snacks manufacturing plant is expected to open later this year in Azov. The companies also are planning an investment in warehousing and distribution infrastructure for the Lebedyansky juice business.
"Russia is a very attractive growth market," said Eric Foss, chairman and chief executive officer, P.B.G. "The investments we’re making in our Russia business are creating new jobs, providing us with the flexibility to produce a wider range of beverage offerings for consumers and enabling us to better serve our valued retail partners. Our new plant in Domodedovo reflects our serious commitment to future expansion in Russia. We’re looking forward to playing an active role in the country’s business community for many years to come."
The new bottling plant will be larger than any other currently in PepsiCo’s global system when operating at full capacity and will produce beverage brands such as Pepsi-Cola, Aqua Minerale water and ready-to-drink Lipton Iced Teas.
This year also marks 50 years PepsiCo has had a presence in Russia.