Global Processing

Tingyi, PepsiCo form strategic alliance in China

November 7, 2011

TAIWAN — Taiwanese food and beverage manufacturer Tingyi Holding has signed an agreement with PepsiCo Inc. to form a strategic alliance within the beverage business in China, 2point6billion.com reported.

Tingyi-Asahi Beverages (TAB), which is Tingyi’s beverage joint venture with Japan’s Asahi Group Holdings, will take over PepsiCo’s entire non-alcoholic beverage bottling business throughout China.

In return, PepsiCo will acquire a 5 percent indirect interest in TAB worth about $55 million. In addition, PepsiCo will have an option to increase its stake up to 20 percent by 2015.