PepsiCo has completed the purchase of its two largest bottlers, Pepsi Bottling Group and PepsiAmericas, in a $7.8bn deal.
The deal will give the soft drinks and snacks company direct control of 80% of the distribution of its soft drinks in the US – up from about 20% currently.
“PepsiCo has had a constructive partnership with PBG and PAS over the past 10 years,” said PepsiCo chairman and chief executive Indra Nooyi.
“While the existing model has served the system very well, it is clear that the changing dynamics of the North American liquid refreshment beverage business demand that we create a more flexible, efficient and competitive system that can drive growth across the full range of PepsiCo beverage brands.”
PepsiCo said it expected the deal to create annual pre-tax savings of $300m by 2012 due to greater cost efficiency and improved revenue opportunities.
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