PepsiCo Announces Plans to Manufacture World Famous Snack Brands in
the Philippines
-- Iconic Cheetos® snacks will be manufactured and distributed by
PCPPI, PepsiCo's current Philippines beverage partner
-- Agreement reflects PepsiCo's commitment to further leverage
'better together' synergies between its beverage and foods
businesses
MANILA,
Philippines /PRNewswire/ -- 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, today 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.
About PepsiCo
PepsiCo products are enjoyed by consumers one billion times a day
in more than 200 countries and territories around the world.
PepsiCo generated more than $66
billion in net revenue in 2014, driven by a
complementary food and beverage portfolio that includes Frito-Lay®,
Gatorade®, Pepsi-Cola®, Quaker® and Tropicana®. PepsiCo's product
portfolio includes a wide range of enjoyable foods and beverages,
including 22 brands that generate more than $1
billion each in estimated annual retail sales.
At the
heart of PepsiCo is Performance with Purpose - our goal to deliver
top-tier financial performance while creating sustainable growth
and shareholder value. In practice, Performance with Purpose means
providing a wide range of foods and beverages from treats to
healthy eats; finding innovative ways to minimize our impact on the
environment and reduce our operating costs; providing a safe and
inclusive workplace for our employees globally; and respecting,
supporting and investing in the local communities where we operate.
For more information, visit www.pepsico.com.
PepsiCo Cautionary Statement
Statements in this communication that are "forward-looking
statements" are based on currently available information, operating
plans and projections about future events and trends. Terminology
such as "aim," "anticipate," "believe," "drive," "estimate,"
"expect," "expressed confidence," "forecast," "future," "goals,"
"guidance," "intend," "may," "objectives," "outlook," "plan,"
"position," "potential," "project," "seek," "should," "strategy,"
"target," "will" or similar statements or variations of such terms
are intended to identify forward-looking statements, although not
all forward-looking statements contain such terms. Forward-looking
statements inherently involve risks and uncertainties that could
cause actual results to differ materially from those predicted in
such forward-looking statements. Such risks and uncertainties
include, but are not limited to: changes in demand for PepsiCo's
products, as a result of changes in consumer preferences or
otherwise; changes in the legal and regulatory environment;
imposition of new taxes, disagreements with tax authorities or
additional tax liabilities; PepsiCo's ability to compete
effectively; PepsiCo's ability to grow its business in developing
and emerging markets or unstable political conditions, civil unrest
or other developments and risks in the markets where PepsiCo's
products are made, manufactured, distributed or sold; unfavorable
economic conditions in the countries in which PepsiCo operates;
increased costs, disruption of supply or shortages of raw materials
and other supplies; failure to realize anticipated benefits from
PepsiCo's productivity initiatives or global operating model;
disruption of PepsiCo's supply chain; product contamination or
tampering or issues or concerns with respect to product quality,
safety and integrity; damage to PepsiCo's reputation or brand
image; failure to successfully complete or integrate acquisitions
and joint ventures into PepsiCo's existing operations or to
complete or manage divestitures or refranchisings; PepsiCo's
ability to hire or retain key employees or a highly skilled and
diverse workforce; loss of any key customer or changes to the
retail landscape; any downgrade or potential downgrade of PepsiCo's
credit ratings; the ability to protect information systems against
or effectively respond to a cybersecurity incident or other
disruption; PepsiCo's ability to implement shared services or
utilize information technology systems and networks effectively;
fluctuations or other changes in exchange rates, including changes
in currency exchange mechanisms or additional governmental actions
in Venezuela;
climate change, or legal, regulatory or market measures to address
climate change; failure to successfully negotiate collective
bargaining agreements or strikes or work stoppages; any
infringement of or challenge to PepsiCo's intellectual property
rights; potential liabilities and costs from litigation or legal
proceedings; and other factors that may adversely affect the price
of PepsiCo's common stock and financial performance.
For
additional information on these and other factors that could cause
PepsiCo's actual results to materially differ from those set forth
herein, please see PepsiCo's filings with the Securities and
Exchange Commission, including its most recent annual report on
Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors
are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date they
are made. PepsiCo undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About PCPPI
Pepsi-Cola Products Philippines Inc. is the exclusive bottler of
PepsiCo beverages in the
Philippines, with a relationship spanning 69 years. Lotte
Chilsung, one of the biggest beverage companies
in South
Korea, is the lead shareholder of PCPPI as an
independently-listed company and co-manages it with PepsiCo. PCPPI
manufactures and sells well-known brands such as Pepsi-Cola,
Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton,
Sting, and Premier. It has established manufacturing facilities
across the country, serving more than 500,000 outlets and providing
employment through its extensive distribution network. PCPPI is
committed to create a positive impact on society with programs
focused on nutrition, education, livelihood, environment, and
employee volunteerism - with its call to action "TAYO Na!" (Talino,
Asenso, Yaman, Oras). To learn more, please visit us
at www.pepsiphilippines.com.
Contacts:
Jennifer
James, PepsiCo: jennifer.james@pepsico.com
Jika
Dalupan, PCPPI: jika.dalupan@pcppi.com.ph
Source: PepsiCo, Inc.
Related Links:
http://www.pepsico.com
http://www.pepsiphilippines.com/