Continued support of Russian Potato farmers part of Pepsico's 1 billion investment in Russia

Julio 06, 2009

Fuente

Pepsico News Release

PepsiCo, one of the world's largest food and beverage companies, announced today that it plans to invest US$1 billion in Russia over three years, together with its partner The Pepsi Bottling Group (PBG).

The investment will bring the cumulative investment in Russia by PepsiCo and PBG to over $4 billion and is consistent with PepsiCo's ongoing strategy to expand in emerging markets.

"I am delighted to announce that over three years we expect to invest $1 billion in our beverage and food businesses in Russia,"said PepsiCo Chairman and Chief Executive Officer Indra Nooyi. "This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market."

Nooyi is in Russia this week to open a new bottling plant outside Moscow, to join a meeting of business leaders convened by Presidents Medvedev and Obama and to mark 50 years since Pepsi-Cola was introduced in Moscow at the 1959 American National Exhibition.

The investment in Russia is funding various programs to expand manufacturing and distribution capacity. In addition to the new beverage facility opening this week in Domodedovo, a new snacks manufacturing plant is expected to open later this year in the southern city of Azov. PepsiCo and PBG also are planning significant investments to build a state-of-the-art warehousing and distribution infrastructure for the Lebedyansky juice business. And PepsiCo, the largest private user of potatoes grown in Russia, plans to continue its substantial investment in local agriculture, applying the latest technology to ensure the highest productivity and quality standards.

Promoting environmental sustainability is a key part of PepsiCo's "Performance with Purpose"commitment to achieve business and financial success while leaving a positive imprint on society. Consistent with this commitment, PepsiCo said it will also continue to actively support Russian communities through its wide-ranging agricultural program, with initiatives to educate local farmers and help them improve crop yields. Specific activities include grants to academic institutions to support agricultural innovation, and advanced training seminars to promote development-oriented farming among local growers who supply potatoes for Frito-Lay snacks.