November 3, 2008
PepsiCo Plans to Invest $1 Billion in China Over the Next Four Years
BEIJING, Nov. 3 /PRNewswire-FirstCall/ -- PepsiCo, one of the world's largest food and beverage companies, announced today that it plans to invest U.S. $1 billion in China over the next four years. The investment is part of the company's ongoing strategy to expand in emerging markets and broaden its portfolio of locally-relevant products.
"I am delighted to announce that over the next four years we plan to invest $1 billion in our beverage and food businesses here in China," said PepsiCo Chairman and Chief Executive Officer Indra Nooyi, who is in China this week. "This is our largest investment in China in the nearly 30 years we have been doing business here, and it is consistent with our broader global strategy of investing in high-growth developing markets."
PepsiCo's investment in China will fund a variety of major capital programs to expand manufacturing capacity, particularly in interior and western areas. The investment also will be used to expand local research and development facilities and build the company's sales force to broaden product distribution. It also will fund brand-building initiatives as well as development of new products tailored to Chinese consumers.
In addition PepsiCo said it will expand its efforts in China to promote environmental sustainability, particularly relating to local agriculture and resource conservation, and to support community-focused programs. These efforts are consistent with the company's "Performance with Purpose" commitment to achieve business and financial success while leaving a positive imprint on society.
"We are enormously confident in the continued prosperity of China," Nooyi said. "We look forward to building an even brighter future here."
The combined investments are expected to create thousands of new jobs in China, where PepsiCo and its bottling partners already directly employ more than 22,000 people. It is estimated that the company and its bottlers indirectly provide employment for some 150,000 others in China.
The investment announcement was made during a four-day visit by Ms. Nooyi, who has been holding meetings with government officials and local business executives and visiting PepsiCo's local operations.
China is one of PepsiCo's fastest-growing international markets. Many of the company's most prominent brands are produced and sold in China, including Pepsi, Frito-Lay snacks, Tropicana juices, Quaker foods and Gatorade sports drinks.
PepsiCo is one of the world's largest food and beverage companies, with 2007 annual revenues of more than $39 billion. The company employs approximately 185,000 people worldwide, and its products are sold in approximately 200 countries. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales. PepsiCo's commitment to sustainable growth, defined as Performance with Purpose, is focused on generating healthy financial returns while giving back to communities the company serves. This includes meeting consumer needs for a spectrum of convenient foods and beverages, reducing the company's impact on the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and inclusive culture that recruits and retains world-class talent. As a member of the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability North America Index (DJSI North America), PepsiCo is a recognized leader in sustainability. For more information, please visit http://www.pepsico.com/.
This release contains forward-looking statements of expected future developments. These forward-looking statements reflect management's expectations and are based on currently available data; however, actual results are subject to risks and uncertainties, which could materially affect actual performance. Risks and uncertainties that could affect our future performance include, but are not limited to, the following: competition, including product and pricing pressures; changing trends in consumer tastes; changes in our relationship and/or support programs between brand owners and anchor bottlers; market acceptance of new product and package offerings; weather conditions; cost and availability of raw materials; changing legislation; outcomes of environmental claims and litigation; availability and cost of capital including changes in our debt ratings; labor and employee benefit costs; unfavorable interest rate and currency fluctuations; costs of legal proceedings; and general economic, business and political conditions in the countries and territories where we operate. Any forward-looking statements should be read in conjunction with information about risks and uncertainties set forth in the Securities and Exchange Commission reports filed by PepsiCo.
Web Site: http://www.pepsico.com/