While PepsiCo sees greater inroads into Russia, all that experts can see is a marriage going bad
In love with a Russian... and married soon after – that’s the latest at PepsiCo. This $115.6 billion giant (nyse), which today commands an incredible global market share of 31.1% (as per Beverage digest) has fallen in love with a healthy, juice producing Russian company, christened ‘JSC Lebedyansky’ (world’s sixth-largest juice manufacturer). The marriage dowry however is ‘beyond’ fair at $1.4 billion for a 75.53% stake in Lebedyansky.
Justifying the takeover, Michael White, CEO and Vice-Chairman, PepsiCo International states, “This agreement provides us with a strong platform for continued expansion in one of the world’s fastest growing juice markets and advances the global transformation of PepsiCo’s product portfolio.” According to ubs ag, Russia’s juice market is currently valued at $2.5 billion and is expected to grow by 10% a year through 2010. Even Euromonitor International has stated that the fruit and vegetable juice sales volume in Russia has grown by 73% (in terms of volume) from 2002 to 2007. So does this prove that this bait is all fleshy?
In love with a Russian... and married soon after – that’s the latest at PepsiCo. This $115.6 billion giant (nyse), which today commands an incredible global market share of 31.1% (as per Beverage digest) has fallen in love with a healthy, juice producing Russian company, christened ‘JSC Lebedyansky’ (world’s sixth-largest juice manufacturer). The marriage dowry however is ‘beyond’ fair at $1.4 billion for a 75.53% stake in Lebedyansky.
Justifying the takeover, Michael White, CEO and Vice-Chairman, PepsiCo International states, “This agreement provides us with a strong platform for continued expansion in one of the world’s fastest growing juice markets and advances the global transformation of PepsiCo’s product portfolio.” According to ubs ag, Russia’s juice market is currently valued at $2.5 billion and is expected to grow by 10% a year through 2010. Even Euromonitor International has stated that the fruit and vegetable juice sales volume in Russia has grown by 73% (in terms of volume) from 2002 to 2007. So does this prove that this bait is all fleshy?
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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