PepsiCo and Pepsi Bottling to invest $1 billion in Russia
07 Jul 2009
Coinciding with US President Obama's visit to Russia, PepsiCo along with its largest bottler, The Pepsi Bottling Group (PBG), will invest $1 billion in Russia, spread over three years - 50 years after Russians had their first taste of Pepsi-Cola.
This will take PepsiCo and PBG's cumulative investment in Russia to over $4 billion in its bid to expand in emerging markets.
"This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market," said PepsiCo chairman and chief executive officer Indra Nooyi.
With sales of their beverages declining in the US market, Pepsi and its rival Coca Cola have been investing substansially in China, India and Russia.
In September 2008, PepsiCo outlined plans to invest $500 million in India over the coming three years (See: Pepsi to outlay $500 million in India: Reports) and in November 2008, announced plans to invest $1 billion in China over a period of four years to expand its manufacturing capability, research and development and sales force in the country. (See: Pepsi to invest $1 billion in China)
Nooyi, who is in Russia this week for a meeting of business leaders convened by Presidents Medvedev and Obama, will open the new bottling plant outside Moscow, and and join Pepsi-Cola's 50 years since itm introduced in Moscow at the 1959 American National Exhibition.
