PepsiCo plans new beverage plant in Russia

By Guy Montague-Jones

- Last updated on GMT

Related tags: Pepsico ceo indra, Indra nooyi, Investment, Russia

PepsiCo has announced plans to invest $140m to build a new beverage plant in Russia, not far from a recently completed snack factory.

The construction of the new facility, announced during the plenary session of Russia’s Foreign Investors Advisory Council, will take the number of PepsiCo food and drink plants in Russia to ten.

The latest plant is to be built in the city of Azov, where the company recently finished the construction of a snack plant. PepsiCo said that having the two factories on the same site will allow the company to save on logistical costs and better exploit processes and technologies to save energy and water.

Kitchen debate

The construction of both facilities is part of a $1bn investment program in Russia, unveiled by PepsiCo CEO Indra Nooyi in 2009. Nooyi made that announcement on the anniversary of the famous ‘kitchen debate’ in 1959 between Richard Nixon and Nikita Khrushchev, when the political leaders clashed over glasses of Pepsi in a model American kitchen.

Since the fall of communism PepsiCo has invested heavily in Russia. Building on a total of $3bn invested in the country in the 10 years up to 2009, Nooyi said last year that the company would set aside another $1bn for investment over the next three years.

Growth opportunities

“Russia is one of our most exciting growth opportunities, and our $250 million total investment in two plants in the Rostov region reflects our commitment to this key market,”​ said Nooyi.

“Our goal is to build a premier food and beverages company in Russia, and we are actively investing in manufacturing and logistics infrastructure to achieve that.”

“We also are broadening our portfolio by adding healthier products, implementing new environmental initiatives and taking steps to support the growth and development of our employees.”

Related topics: Markets, PepsiCo

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