The billion dollar investment will be over three years and will serve as a new focus to enter new markets as the domestic economy stifles.
PepsiCo said the move is part of a long-term strategy to expand in emerging markets and brings the total investment by PepsiCo and Pepsi Bottling Group Inc. in
"This investment reflects very clearly our great confidence in
The companies plan to increase manufacturing and distribution capacity in
PepsiCo is also opening a new beverage facility this week in Domodedovo and a snacks plant in Azov later this year. The Domodedovo plant will produce Pepsi-Cola and other beverages and will be PepsiCo's largest bottling plant worldwide.
PepsiCo’s news is the latest in a string of international investments over the past couple of months.
Last November, PepsiCo said it would invest $1 billion in
Later that month, PepsiCo said it would invest up to $3 billion in
It also announced it struck a deal to buy 20 percent of Japan's largest snack company, Calbee Foods, and earlier, another deal to buy a Jordanian dairy company, Teeba, through a joint venture with Saudi-based dairy company Almarai.
Pepsi Bottling Group, based in
The pairing comes as PepsiCo is trying to buy out Pepsi Bottling Group and its other major bottler, PepsiAmericas, Inc. (NYSE: PAS). PepsiCo first offered $6 billion in April to buy out the two bottlers, saying owning them would help it operate more efficiently.
Both bottling companies rejected the deal, saying the beverage conglomerate undervalued them.
Shares in PepsiCo stock have risen 56 cents (0.99%) to $56.91 in morning trading. Pepsi Bottling Group stock rose 22 cents (0.64%) to $34.02.
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