PBG President and Chief Executive Officer Eric J. Foss said, "The economic outlook for Russia is very bright. This joint venture will enable the Pepsi system to respond more quickly to marketplace dynamics. In addition, we will be in an even better position to strategically invest in Russia to accelerate our growth."
PepsiCo Vice Chairman and Chairman & CEO of PepsiCo International Michael D. White said, "This agreement strengthens what has been a very effective working relationship between PBG and PepsiCo. We look forward to working closely with PBG to continue building our business in Russia."
PBG will consolidate the joint venture into its financial results. PepsiCo will recognize the earnings of the joint venture as equity income. This will have no impact on PBG's or PepsiCo's previously announced earnings per share and cash flow guidance for 2007.
PepsiCo is one of the world's largest food and beverage companies with annual revenues of $35 billion. Its principal businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. Its portfolio includes 17 brands that generate $1 billion or more each in annual sales.
The Pepsi Bottling Group, Inc. is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages with operations in the U.S., Canada, Greece, Mexico, Russia, Spain and Turkey.
From the March 13, 2007, Prepared Foods e-Flash