Global Processing

PepsiCo to spend $1 billion in China over next 4 years

November 3, 2008

Beverage and snack maker PepsiCo Inc. will invest $1 billion in China over the next four years to expand its manufacturing capability, research and development and sales force in the country, according to the Associated Press. The investment will fund programs to expand manufacturing capacity, mainly in interior and Western China. It will expand local research and development facilities, build the sales force and fund brand-building and new product initiatives. Earlier this month, PepsiCo reported a nearly 10 percent drop in third-quarter profit, missing Wall Street expectations. The company has focused on growing market share in quickly growing markets of Brazil, India, Russia and China, and earlier announced that it would cut 3,300 jobs and close six plants to combat weak U.S. drink sales and a surging dollar, which will hurt profits from its rapidly growing international business.