PepsiCo acquires bottling companies, consolidates operations

Posted by Nicole Eckersley on 2nd March 2010

PepsiCo announced today that it has completed acquisitions of its two largest bottlers, The Pepsi Bottling Group, Inc, and PepsiAmericas, Inc.  The US$7.8 billion dollar acquisition is intended to streamline PepsiCo’s operations and facilitate faster and more integrated product delivery.

In addition to allowing PepsiCo to consolidate its operations, the company hopes to increase product bundling and joint promotions with its many food and beverage product lines, particularly savoury snacks.  It is also expected that the merger will increase speed-to-market and market maneuverability.

“This investment opens up a broad range of new growth opportunities around the world, particularly in North America, which accounts for the majority of our revenues and offers the prospect of significant growth,” said PepsiCo Chairman and CEO Indra Nooyi.

Pepsi’s new operating unit, Pepsi Beverages Company, will serve the United States, Canada and Mexico as one integrated division.  European operations will be consolidated into PepsiCo Europe.  Gatorade, Tropicana and Latina America Beverages will continue to exist as PepsiCo Beverages Americas.