PepsiCo is on the hunt for a new franchise partner in South Africa

PepsiCo is on the hunt for a new franchise partner in South Africa

Pioneer Foods has called time on its franchise agreement with PepsiCo in South Africa.

The company, which released its full-year results yesterday, will not renew its deal with the soft drinks giant. PepsiCo appointed Pioneer as its South African bottler and distributor of brands, including Pepsi, Diet Pepsi, 7-Up, and Mirinda, in 2005.

The decision was reached “by mutual agreement”, Pioneer said.

“Due to sustained losses,” Pioneer said yesterday, “the investment in the Pepsi business was impaired in the year under review by an after-tax amount of ZAR34m (US$3.1m). A controlled exit by Pioneer Foods will take place by no later than July 2015.”

No-one was immediately available for comment at PepsiCo when contacted by just-drinks this morning.

Pioneer owns the Ceres CSD, juice, ice tea and dilutables brand.