PURCHASE, N.Y. and OSAKA, Japan — PepsiCo and Japanese beverage company Suntory have formed a strategic alliance in Vietnam.
Under the terms of the agreement, Suntory will acquire a 51 percent equity stake in PepsiCo''s beverage business in Vietnam. PepsiCo will hold the remaining 49 percent.
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.
According to a press release, 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.
"Vietnam is a highly attractive growth market where PepsiCo is well positioned in the food and beverage marketplace,” said Umran Beba, PepsiCo Asia Pacific president. “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. Suntory is a world-class company and proven PepsiCo partner, and we believe their expertise and capabilities will drive the continued success of our Vietnam beverage business."