Suntory Beverage & Food and PepsiCo have set up a soft drink joint venture in Thailand, as Suntory aims to expand outside Japan.
The deal sees Suntory buy 51% of International Refreshment, which is owned by PepsiCo, for JPY 33 billion ($289 million). The company will be renamed as Suntory PepsiCo Beverage (Thailand).
In a statement, Suntory said it predicts strong performance in the Thai beverage market, backed by the country’s GDP growth. It also highlighted PepsiCo’s ‘solid business platform’, with its strong brand equity, manufacturing facilities and sales network.
The statement read: “The acquisition will enable Suntory Beverage & Food to expand its beverage business in Thailand, and also further strengthen PepsiCo’s beverage business in the significantly growing Thailand market.
“Through the establishment of the joint venture, Suntory Beverage & Food and PepsiCo plan to grow its beverage business in Thailand by leveraging each company’s respective strengths – Suntory Beverage & Food’s expertise in development of products to meet healthier demands, including ready-to-drink tea, and PepsiCo’s strong business platform.”
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