PepsiCo and Suntory to Form Beverage Alliance in Vietnam

PepsiCo, Inc. and Suntory Holdings Limited , a global beverage and wellness company based in Japan, agreed to form a strategic alliance in Vietnam.

Under the terms of the agreement, Suntory will acquire a 51 percent stake in PepsiCo's Vietnam beverage business, while PepsiCo will be a 49 percent shareholder. Suntory and PepsiCo 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 Vietnam and to create new growth opportunities for PepsiCo and Suntory in the market. PepsiCo is one of the leading players in Vietnam's liquid refreshment beverage space, and the alliance is designed to combine the capabilities of both companies in ways that are mutually beneficial to their businesses, customers and consumers.
 

PepsiCo will retain marketing and innovation responsibilities for its portfolio of iconic beverage brands in Vietnam, which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina. Suntory brings to the strategic alliance strong brands and a long history of successfully developing beverages for the Asia market.
 

"Vietnam is a highly attractive growth market where PepsiCo is well-positioned in the food and beverage marketplace,” says Umran Beba, president, PepsiCo Asia Pacific. “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."

PepsiCo and Suntory have an established record of successfully working together in other beverage markets, including the United States, Japan and New Zealand.
 

“Suntory is committed to the Vietnam business together with PepsiCo, our partner of more than 30 years, which has already established a leading position in Vietnam,” says Henry Park, CEO of Suntory Beverage & Food Asia Pte. Ltd., a wholly owned subsidiary of Suntory Holdings Limited.
 

Since entering the market in 1994, PepsiCo now has five beverage manufacturing plants in Vietnam, a high priority 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 Asia following the establishment of Suntory Beverage & Food Asia Pte. Ltd. in Singapore. Expansion into Vietnam is a key part of Suntory's long-range plans.

PepsiCo will continue to independently operate its foods business in Vietnam.