PepsiCo Plans to Invest $140 Million In New Beverage Plant in Russia’s Rostov Region

PepsiCo, Inc (NYSE: PEP), one of the world’s largest food and beverage businesses, today signed a memorandum outlining plans to invest $140 million to build its tenth plant in Russia, during the plenary session of Russia’s Foreign Investors Advisory Council. The memorandum, for a beverage plant, was signed by Indra Nooyi, chairman and CEO, PepsiCo, and Vasily Golubev, governor of the Rostov region, where the plant will be located.

The new plant will be constructed in the city of Azov, where the company recently completed a snack plant. Both plants in Azov are part of PepsiCo’s $1 billion investment program in Russia, announced by Ms. Nooyi in 2009. In the previous ten years, PepsiCo invested $3 billion in Russia. Placing both plants on the same property will allow for more efficient logistics and leverage the advantages of production processes and technologies that save water and energy.

“Russia is one of our most exciting growth opportunities, and our $250 million total investment in two plants in the Rostov region reflects our commitment to this key market,” said Ms. Nooyi. “Our goal is to build a premier food and beverages company in Russia, and we are actively investing in manufacturing and logistics infrastructure to achieve that. Consistent with our Performance with Purpose vision, we also are broadening our portfolio by adding healthier products, implementing new environmental initiatives and taking steps to support the growth and development of our employees.”

Vasily Golubev, Rostov region governor, said: “PepsiCo’s decision to double its investment is a clear indication that the Rostov region created a very favorable investment climate for both foreign and Russian manufacturers. Such global companies as PepsiCo, as well as others, have flourished in the region.”