Pepsi venture moves for Siberian soft drinks maker
presence in the high growth soft drink markets of Eastern Europe
and Siberia with the acquisition of local group Sobol.
A spokesperson for the soft drink maker told BeverageDaily.com that Russia continued to show strong growth potential for the segment, and the latest acquisition would therefore open up new growth areas for the company within the market. The purchase will be made through the PR beverages group, which is a joint venture between PepsiCo itself and Pepsi Bottling Company (PGB), and is expected to be completed by the second quarter of 2008 for an undisclosed fee, the company said. As part of the agreement, PepsiCo said it will take control of Sobol's Novosibirsk plant in the west Siberian plane of the country, which has already been used to co-pack some of the company's brands. PR Beverages PepsiCo announced last March that it was forming the PR beverages joint venture to focus specifically within the Russian market. Under the agreement, PepsiCo combined its concentrate operations in the country with PBG's local bottling facilities, to adapt to the challenges of the local market. Russia is becoming an increasingly important market for beverage producers, with the cooperation between the two company's highlighting the increasing competitiveness amongst producers to improve the efficiency of their operations.
