April 20, 2009

PepsiCo offers bottlers $6 billion

PespiCo said Monday it would reverse its strategy on bottling, offering $6 billion to buy the portions of two bottling companies it does not already own.

PepsiCo's Chief Executive Officer Indra Nooyi said the company could improve our competitiveness and our growth prospects, by attempting to take control of Pepsi Bottling Group and PepsiAmericas.

The move that would give it control of 80 percent its North American beverage volume, The New York Times reported Monday.

In effect, control of its bottling would allow PepsiCo to shift its focus as demand shifts from carbonated drinks to fruit drinks, sports power drinks and water.

In addition, PepsiCo would realize a pretax savings of about $200 million from the two deals and an earnings growth of 15 cents a share, the newspaper said.