PepsiCo Invests in Myanmar

PepsiCo, Inc. signs an agreement with Diamond Star Co., Ltd., a unit of the Capital Diamond Star Group, to distribute PepsiCo beverage brands in Myanmar.

 

As part of the agreement, Diamond Star, which is one of the largest consumer packaged goods distributors in Myanmar, now has exclusive rights to import, sell and distribute Pepsi-Cola, 7-Up and Mirinda, three of the 22 brands in PepsiCo's portfolio that generate more than $1 billion each in annual retail sales. 

 

PepsiCo also plans to explore opportunities to invest in agricultural development projects in Myanmar. One of the world's largest agricultural enterprises, PepsiCo sources more than four million tons of potatoes annually and works with thousands of local farmers around the globe to make its products.

 

"PepsiCo has a strong and growing business that spans more than 200 countries and territories around the world, and we are constantly looking for new growth opportunities that will put our food and beverage brands in the hands of more consumers," says PepsiCo Chairman and CEO Indra Nooyi. "Myanmar is a market with great potential, and our agreements with Diamond Star and UNESCO are important first steps towards expanding our presence in the country. Over time, we believe we can build a strong business in Myanmar and play a positive role in the country's continued development."

 

The distribution agreement with Diamond Star follows several years of strong growth for PepsiCo in developing and emerging markets. PepsiCo nearly tripled its business in developing and emerging markets from $8 billion in annual revenue in 2006 to $22 billion in 2011. 

 

In addition, PepsiCo also announced that it has signed a Memorandum of Understanding with the United Nations Educational, Scientific and Cultural Organization (UNESCO) to partner on vocational training initiatives in Myanmar. PepsiCo and UNESCO plan to work together to provide programs that focus on managerial skills training to support the country's development, empower its people and strengthen the workforce as PepsiCo looks to expand its business in the future.