PepsiCo Inc. and Suntory Holdings Ltd., a global beverage and wellness company based in Japan, have announced an agreement to form a strategic alliance in Vietnam. Under the terms of the agreement, Suntory will acquire a 51% stake in PepsiCo’s Vietnam beverage business, while PepsiCo will be a 49% shareholder. Suntory and PepsiCo will hold key roles in the management team of the new joint venture, which will serve as the bottler for both companies in Vietnam.
The new alliance is expected to build on PepsiCo’s existing position in Vietnam and to create new growth opportunities for PepsiCo and Suntory in the market. PepsiCo is one of the leading players in Vietnam’s liquid refreshment beverage space, and the alliance is designed to combine the capabilities of both companies in ways that are mutually beneficial to their businesses, customers, and consumers.
PepsiCo will retain marketing and innovation responsibilities for its portfolio of beverage brands in Vietnam, which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton, and Aquafina. Suntory brings to the strategic alliance strong brands and a long history of successfully developing beverages for the Asia market. PepsiCo and Suntory have an established record of successfully working together in other beverage markets, including the United States, Japan, and New Zealand.
“Vietnam is a highly attractive growth market where PepsiCo is well positioned in the food and beverage marketplace. We’re focused on expanding our food and beverage business in Vietnam through continued investment across our portfolio, and our beverage alliance with Suntory is an important part of our strategy to position PepsiCo for sustainable long-term growth in the market. Suntory is a world-class company and proven PepsiCo partner, and we believe their expertise and capabilities will drive the continued success of our Vietnam beverage business,” said Umran Beba, President, PepsiCo Asia Pacific.