Pepsi is following through on its commitment to grow its Russian business.
On Monday, the company confirmed plans to invest $140 million to build its tenth plant in the country.
cnbc.com
Pepsi cans
This one will be a beverage factory in the Rostov region, the same area where Pepsi has built a snack plant as well.
”Our goal is to build a premier food and beverages company in Russia,” CEO Indra Nooyi said in a statement. “And we are actively investing in manufacturing and logistics infrastructure to achieve that.”
The latest investment is part of a plan to invest $1 billion in Russia that was announced last year.
In its most recent earnings report, Pepsi pointed to Eastern Europe as a stand-out region: “Europe experienced gains, most of the positive growth came from Eastern Europe, driven by a strong commercial calendar combined with an unusually hot summer that drove category growth. The business captured dollar share gains in key markets such as Russia, Turkey, Spain and the U.K.”
The company did not provide specifics on what beverages will be produced in the new plant or when ground will be broken on the project.