PepsiCo Announces Plans to Manufacture World Famous Snack Brands in the Philippines

Iconic Cheetos® snacks will be manufactured and distributed by PCPPI, PepsiCo’s current Philippines beverage partner  

- Agreement reflects PepsiCo’s commitment to further leverage ‘better together’ synergies between its beverage and foods businesses   

MANILA, Philippines, May 19, 2015 /PRNewswire/ — PepsiCo, Inc., one of the world’s largest food and beverage companies, and Pepsi-Cola Products Philippines Inc. (PCPPI) the company’s beverage bottling partner in the Philippines, today announced an agreement for PCPPI to also manufacture one of PepsiCo’ s world-famous snacks brands locally in the Philippines.

Under the terms of the agreement, PCPPI will manufacture and distribute a range of PepsiCo’s popular Cheetos® snack products and flavors to the Philippines’ 100 million consumers.  PCPPI is expected to commence manufacturing later this year.

The creation of the joint snacks-and-beverage franchise operations in the Philippines reflects PepsiCo’s ongoing drive to ensure the integration of its food and beverage portfolio across multiple platforms, including manufacturing and go-to-market execution.

“The Philippines is a highly attractive market where both PepsiCo and its partners have a long track record of success with our beverages and foods brands,” said Maricelle Narciso, General Manager, PepsiCo Philippines. “The establishment of a snacks franchise operation reflects our commitment to bring more locally-made products to our consumers and customers, and to drive synergies in the manufacturing and distribution of our delicious food and beverage products wherever possible.”

“This development presents an exciting opportunity for PCPPI to further its vision of becoming a premier food and beverage company in the Philippines,” said Furqan Ahmed Syed, President of PCPPI. “Leveraging PepsiCo’s established line of snacks is an exciting and strategic step in our first foray into the foods business.”

The first Pepsi plant was established in the Philippines in 1946. PCPPI, which has been PepsiCo’s beverage partner since 1989, now has 12 plants across the country, manufacturing and distributing a range of leading PepsiCo beverages including Pepsi-Cola®, Tropicana® juice drinks, Gatorade®, and Mountain Dew®. PepsiCo’s oats brand, Quaker®, is also a market leader in the Philippines.

The agreement also marks another milestone in PepsiCo’s longstanding business relationship with the LOTTE group, a multinational food and retail conglomerate based in South Korea that is PCPPI’s largest shareholder. PepsiCo has worked closely with LOTTE in Korea since 1976 and in the Philippines since 2010. The LOTTE group is also PepsiCo’s beverage partner in Myanmar.

About PepsiCo
PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $66 billion in net revenue in 2014, driven by a complementary food and beverage portfolio that includes Frito-Lay®, Gatorade®, Pepsi-Cola®, Quaker® and Tropicana®. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.

At the heart of PepsiCo is Performance with Purpose – our goal to deliver top-tier financial performance while creating sustainable growth and shareholder value. In practice, Performance with Purpose means providing a wide range of foods and beverages from treats to healthy eats; finding innovative ways to minimize our impact on the environment and reduce our operating costs; providing a safe and inclusive workplace for our employees globally; and respecting, supporting and investing in the local communities where we operate. For more information, visit www.pepsico.com.

PepsiCo Cautionary Statement
Statements in this communication that are “forward-looking statements” are based on currently available information, operating plans and projections about future events and trends. Terminology such as “aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,” “expressed confidence,” “forecast,” “future,” “goals,” “guidance,” “intend,” “may,” “objectives,” “outlook,” “plan,” “position,” “potential,” “project,” “seek,” “should,” “strategy,” “target,” “will” or similar statements or variations of such terms are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in demand for PepsiCo’s products, as a result of changes in consumer preferences or otherwise; changes in the legal and regulatory environment; imposition of new taxes, disagreements with tax authorities or additional tax liabilities; PepsiCo’s ability to compete effectively; PepsiCo’s ability to grow its business in developing and emerging markets or unstable political conditions, civil unrest or other developments and risks in the markets where PepsiCo’s products are made, manufactured, distributed or sold; unfavorable economic conditions in the countries in which PepsiCo operates; increased costs, disruption of supply or shortages of raw materials and other supplies; failure to realize anticipated benefits from PepsiCo’s productivity initiatives or global operating model; disruption of PepsiCo’s supply chain; product contamination or tampering or issues or concerns with respect to product quality, safety and integrity; damage to PepsiCo’s reputation or brand image; failure to successfully complete or integrate acquisitions and joint ventures into PepsiCo’s existing operations or to complete or manage divestitures or refranchisings; PepsiCo’s ability to hire or retain key employees or a highly skilled and diverse workforce; loss of any key customer or changes to the retail landscape; any downgrade or potential downgrade of PepsiCo’s credit ratings; the ability to protect information systems against or effectively respond to a cybersecurity incident or other disruption; PepsiCo’s ability to implement shared services or utilize information technology systems and networks effectively; fluctuations or other changes in exchange rates, including changes in currency exchange mechanisms or additional governmental actions in Venezuela; climate change, or legal, regulatory or market measures to address climate change; failure to successfully negotiate collective bargaining agreements or strikes or work stoppages; any infringement of or challenge to PepsiCo’s intellectual property rights; potential liabilities and costs from litigation or legal proceedings; and other factors that may adversely affect the price of PepsiCo’s common stock and financial performance.

For additional information on these and other factors that could cause PepsiCo’s actual results to materially differ from those set forth herein, please see PepsiCo’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About PCPPI
Pepsi-Cola Products Philippines Inc. is the exclusive bottler of PepsiCo beverages in the Philippines, with a relationship spanning 69 years. Lotte Chilsung, one of the biggest beverage companies in South Korea, is the lead shareholder of PCPPI as an independently-listed company and co-manages it with PepsiCo. PCPPI manufactures and sells well-known brands such as Pepsi-Cola, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting, and Premier. It has established manufacturing facilities across the country, serving more than 500,000 outlets and providing employment through its extensive distribution network. PCPPI is committed to create a positive impact on society with programs focused on nutrition, education, livelihood, environment, and employee volunteerism – with its call to action “TAYO Na!” (Talino, Asenso, Yaman, Oras). To learn more, please visit us at www.pepsiphilippines.com.

Contacts:
Jennifer James, PepsiCo: jennifer.james@pepsico.com
Jika Dalupan, PCPPI: jika.dalupan@pcppi.com.ph