PepsiCo, Suntory form strategic alliance in Viet Nam

PURCHASE, N.Y. and OSAKA, Japan - Once again, PepsiCo, Inc. (NYSE: PEP) and Suntory Holdings Limited (Suntory), a global beverage and wellness company based in Japan, are working together to expand business in Asia. They announced on October 22 an agreement to form a strategic alliance in Viet Nam.

Under the terms of the agreement, the Japanese company will get 51% stake in PepsiCo's Viet Nam beverage business, whilst the remainder is for the beverage giant. Both companies will hold key roles in the management team of the new joint venture, which will serve as the bottler for both companies in Vietnam.

The new alliance is expected to build on PepsiCo's existing position in Viet Nam and to create new opportunities for both companies. The beverage company will retain marketing and innovation responsibilities for its brands in Viet Nam, which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina. For its part, Suntory brings strong brands and a history of successfully delivering beverages to the Asia market.

Henry Park, CEO of Suntory Beverage & Food Asia Pte. Ltd., a wholly owned subsidiary of Suntory Holdings Limited, said: "Suntory has been actively expanding its business foundation to consolidate its position in growing Southeast Asian markets.

This alliance is one of our strategic initiatives to pursue further growth in the region. Suntory is committed to the Viet Nam business together with PepsiCo, our partner of more than 30 years, which has already established a leading position in Vietnam.”

Umran Beba, president, PepsiCo Asia Pacific said: "Vietnam is a highly attractive growth market where PepsiCo is well positioned in the food and beverage marketplace. We're focused on expanding our food and beverage business in Vietnam through continued investment across our portfolio, and our beverage alliance with Suntory is an important part of our strategy to position PepsiCo for sustainable long-term growth in the market. Suntory is a world-class company and proven PepsiCo partner, and we believe their expertise and capabilities will drive the continued success of our Vietnam beverage business."

Since entering the market in 1994, PepsiCo has undertaken an investment program of more than $500 million and now has five beverage manufacturing plants in Viet Nam, a high priority market in PepsiCo's aggressive emerging and developing markets growth plans. PepsiCo nearly tripled its business in emerging and developing markets from $8 billion in annual revenue in 2006 to $22 billion in 2011.

Suntory has accelerated its global strategy and expanded its beverage business in Southeast.  Expansion into Viet Nam is a key part of its long-range plans. PepsiCo will contAir Jordan