PepsiCo announced on its website that it has reached a deal to acquire The Pepsi Bottling Group Inc. and PepsiAmericas Inc., its two largest bottling companies.
According to PepsiCo’s site, the deal, which is worth US$7.8 billion, will create one of the largest food and beverage companies globally.
PepsiCo presently owns 33 per cent of The Pepsi Bottling Group and 43 per cent of PepsiAmericas.
Better able to compete
Indra Nooyi, PepsiCo’s chairman and CEO, says the transaction will mean PepsiCo will be able to bring innovative products and packages to market faster, streamline its manufacturing and distribution systems and react more quickly to changes in the marketplace.
The company says the acquisition will directly complement the transformation efforts already underway in its North American beverage business.
Those efforts have included refreshing such brands as Pepsi and Gatorade and introducing new products, ranging from the naturally sweetened zero-calorie SoBe Lifewater to low-calorie Trop50.
According to a CNNMoney.com story, Gatorade has been a “prime sore spot” since its new marketing campaign hasn’t stopped falling sales.