PepsiCo to sell 51% stake in Vietnam business to Suntory
PepsiCo has agreed to sell 51% stake in its Vietnam beverage business to Japanese beverage company Suntory Holdings.
The strategic alliance is expected to build on PepsiCo's existing position in Vietnam and create new growth opportunities for the partners in the country.
PepsiCo, which is active in Vietnam's liquid refreshment beverage space, will retain marketing and innovation responsibilities for its portfolio of beverage brands in Vietnam, which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina.
Both the firms are currently working together in other beverage markets, including the US, Japan and New Zealand.
Expansion into Vietnam is a key part of Suntory's long-range plans, following the establishment of Suntory Beverage & Food Asia in Singapore.
Suntory Beverage & Food Asia CEO Henry Park said that the company has been actively expanding its business foundation to consolidate its position in growing South-East Asian markets.
"This alliance is one of our strategic initiatives to pursue further growth in the region," he added.
PepsiCo has currently five beverage manufacturing plants in Vietnam, a high priority market in its aggressive emerging and developing markets growth plans.
PepsiCo Asia Pacific president Umran Beba said: "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."
The transaction is subject to the completion of legal processes.