CHINA: PepsiCo to invest US$2.5bn in China
The China investment will involve new manufacturing facilities and improved R&D operations
US soft drink and snacks maker PepsiCo is to invest US$2.5bn in its food and beverage businesses in China over the next three years.
The investment, confirmed today (21 May), comes on the back of an announcement in March that it is targeting growth in China following Government approval to build 14 new beverage plants.
The money will be spent on new manufacturing facilities, a scaling up of the company's research and development operations, expanded agricultural development and brand-building initiatives.
“This investment reflects very clearly our great confidence in China and our long-term commitment to this very important, growing market,” said PepsiCo chairman and CEO Indra Nooyi. “We look forward to continuing to evolve our business in China and offer Chinese consumers a full portfolio of foods and beverages ranging from soft drinks and juices to oatmeal and savory snacks.”
PepsiCo plans to open between ten and 12 plants in China to manufacture soft drinks, non-carbonated beverages and snacks and will install additional production lines in existing facilities.
The company said it will open plants in the provinces of Fujian, Gansu, Henan and Yunnan in the next two years, a move consistent with its strategy to expand in interior and western China. All plants will meet LEED standards for environmental design, the firm said.
PepsiCo also said it plans to broaden its portfolio of Chinese-designed and developed products with the construction of an R&D centre to develop more food and beverage choices made with “wholesome ingredients that contribute to healthier eating and drinking” for Asia.
The company currently operates 27 beverage and food plants and five farms throughout China and employs around 20,000 people in the country.
- Craft spirits shake-out will be just the beginning
- How Treasury is rewriting the rule book - Comment
- Drinkable yogurt - The next drinks opportunity
- Coca-Cola India suspends bottling operations
- Has Diet Coke passed its sell-by date? - Comment
- Diageo brands need "fixing and nurturing" - TWE
- SAB shareholders granted AB InBev vote split
- Pernod Ricard wins Ron Matusalem 'Cuba' legal row
- Work begins on Glasgow distillery
- Sapporo’s Sapporo Premium Black - NPD
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages