Pepsi inks deal to produce, sell snacks in Japan
June 24, 2009
According to the Associated Press, PepsiCo Inc. said it has struck a deal to buy 20 percent of Japan''s largest snack company, with which it will produce and sell snacks and other foods in the Asian nation. PepsiCo, the parent of Frito-Lay snacks and Quaker foods, said it will transfer its Frito-Lay Japan business plus an undisclosed amount of cash to Calbee Foods Company, which is based in Tokyo. In return, Calbee will issue new stock to PepsiCo, which will result in the New York-based beverage and snack maker owning 20 percent of the company. PepsiCo will also have a seat on Calbee''s board. The deal is subject to Japanese government approval. Together, PepsiCo and Calbee plan to produce and sell a wide range of snacks in Japan, such as potato chips, vegetable snacks, breakfast cereal and prawn crackers -- a popular munchie in Japan.