PepsiCo Plans $2.5bn Chinese Expansion

PepsiCo is planning to invest $2.5bn in China over the next three years in addition to the $1bn announced in 2008.

The investment will see nearly 12 new soft drinks and non-carbonated beverage plants being introduced into provinces, including Fujian, Gansu, Henan and Yunnan, in the next two years.

PepsiCo will also invest in a research and development centre to develop products for all of Asia, the company said.

Growth in the emerging markets of China and India saw beverage giants’ Q1 revenues rise thanks to a 13% increase in snacks and a 10% increase in beverage sales in its Asia, Middle East and Africa unit.

PepsiCo’s main competitor, Atlanta-based Coca Cola, announced a $2bn investment in China late last year.