Tingyi is expected to post slower growth next year

Tingyi is expected to post slower growth next year

PepsiCo's China JV partner, Tingyi, has said its beverage sales will increase at more than twice the rate of the Chinese economy next year, according to a report.

The company's CFO, Frank Lin, said in an interview late last month that the growth will outpace Tingyi's instant noodle sales, Bloomberg reported yesterday (4 December). Beverages account for around half of Tingyi's sales while instant noodles take 43%.

“Our drinks and instant noodles businesses will still be the growth drivers for the company next year,” Lin said. “Any impact to consumer demand in 2014 will be very limited.”

China's economy is expected to grow by 7% next year, a slowdown from the double-digit annual growth posted in the past few years.

Lin's comments follow analyst estimates that Tingyi's annual sales will grow at their slowest pace for eight years, Bloomberg said. The Tianjin-based company released its Q3 results last month, with instant noodle sales up 11% and beverage sales up 18% in the quarter, according to Reuters.

Last year, PepsiCo took a 5% stake in Tingyi while selling its bottling operations to the Chinese firm.