PepsiCo Plans to Invest $1 Billion in China Over the Next Four Years

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.

The news release provides no insight in the breakdown of the investments by type of product (beverages, snacks).