US: PepsiCo trims guidance, acquires Dr Pepper Snapple rights
- Group acquires DPS rights in US, Canada, Mexico
- Bottler deals "on track"
- Trims top end of FY guidance
In August, PepsiCo signed a deal to take full control of the two bottlers for a total $7.8bn.
"PepsiCo is fully committed to vigorously expand, flawlessly distribute and grow Dr Pepper Snapple's brands in its appointed territories," said PepsiCo chairperson and CEO Indra Nooyi.
Under the deal, PepsiCo will distribute Dr Pepper, Crush and Schweppes brands in the US; Dr Pepper, Crush, Schweppes, Vernors and Sussex brands in Canada; and Squirt and Canada Dry brands in Mexico.
PepsiCo has signed a 20-year deal for the rights, with an automatic 20-year renewal. The deal will take effect upon closing of the bottler acquistions, which PepsiCo expects to complete by the end of the first quarter of 2010.
At the same time today, PepsiCo trimmed the top end of its full-year earnings and sales guidance for 2009.
On a constant currency basis, net sales are set to rise by 5% and earnings per share by 5-6%, compared to previous guidance of mid to high single digit rises.
The soft drinks giant said that it has "stepped up" investment for 2010 and beyond.
"For example, PepsiCo is making infrastructure investments in developing markets, such as China, to drive increased penetration and distribution of both carbonated and non-carbonated beverages," it said.
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