PepsiCo, Pepsi Bottling to invest $1 billion in Russia

NEW YORK -- Soft drink and snack maker PepsiCo Inc. said Monday it will team up with its largest bottler, Pepsi Bottling Group, to invest $1 billion in Russia over three years.

PepsiCo called it part of a long-term strategy to expand in emerging markets. The investment brings PepsiCo and Pepsi Bottling Group's total investment in Russia to over $4 billion.

"This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market," said Indra Nooyi, PepsiCo's chairman and chief executive.

The investment will be used to boost manufacturing and distribution capacity in Russia, which Pepsi Bottling Group Chief Executive Eric Foss called an "attractive growth market."

PepsiCo is also opening a new beverage facility this week in Domodedovo and will open a snacks manufacturing plant in Azov later this year. The PepsiCo plant in Domodedovo will produce Pepsi-Cola and other beverages and will be PepsiCo's largest bottling plant worldwide.

Purchase, N.Y.-based PepsiCo is the world's second-biggest maker of soft drinks behind Coca-Cola Co.

PepsiCo's products are sold in about 200 countries. Its brand portfolio includes Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods.

Pepsi Bottling Group, based in Somers, N.Y., is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages and has operations in the U.S., Canada, Greece, Mexico, Russia, Spain and Turkey.