Pepsico to start production of Cheetos in the Philippines in joint venture

PepsiCo, Inc., one of the world's largest food and beverage companies, and Pepsi-Cola Products Philippines Inc. (PCPPI) the company's beverage bottling partner in the Philippines, have announced an agreement for PCPPI to also manufacture one of PepsiCo' s world-famous snacks brands locally in the Philippines.

Under the terms of the agreement, PCPPI will manufacture and distribute a range of PepsiCo's popular Cheetos® snack products and flavors to the Philippines' 100 million consumers. PCPPI is expected to commence manufacturing later this year.

The creation of the joint snacks-and-beverage franchise operations in the Philippines reflects PepsiCo's ongoing drive to ensure the integration of its food and beverage portfolio across multiple platforms, including manufacturing and go-to-market execution.

"The Philippines is a highly attractive market where both PepsiCo and its partners have a long track record of success with our beverages and foods brands," said Maricelle Narciso, General Manager, PepsiCo Philippines. "The establishment of a snacks franchise operation reflects our commitment to bring more locally-made products to our consumers and customers, and to drive synergies in the manufacturing and distribution of our delicious food and beverage products wherever possible."

"This development presents an exciting opportunity for PCPPI to further its vision of becoming a premier food and beverage company in the Philippines," said Furqan Ahmed Syed, President of PCPPI. "Leveraging PepsiCo's established line of snacks is an exciting and strategic step in our first foray into the foods business."

The first Pepsi plant was established in the Philippines in 1946. PCPPI, which has been PepsiCo's beverage partner since 1989, now has 12 plants across the country, manufacturing and distributing a range of leading PepsiCo beverages including Pepsi-Cola®, Tropicana® juice drinks, Gatorade®, and Mountain Dew®. PepsiCo's oats brand, Quaker®, is also a market leader in the Philippines.

The agreement also marks another milestone in PepsiCo's longstanding business relationship with the LOTTE group, a multinational food and retail conglomerate based in South Korea that is PCPPI's largest shareholder. PepsiCo has worked closely with LOTTE in Korea since 1976 and in the Philippines since 2010. The LOTTE group is also PepsiCo's beverage partner in Myanmar.