The new alliance is expected to build on PepsiCo’s existing position in Vietnam and to create new growth opportunities for both partners in the market. Under the terms of the agreement, Suntory will acquire a 51 per cent stake in PepsiCo Vietnam’s beverage business, with PepsiCo keeping control of the other 49 percent. Both companies will hold key roles in the management team of the new joint venture, which will serve as the producer of drinks for both companies in Vietnam.

PepsiCo will retain marketing and innovation responsibilities for its portfolio of iconic beverages in Vietnam, including the brands Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana Twister, Lipton and Aquafina. Suntory in turn has committed to sharing its strong brand and long history of successfully developing beverages for the Asian market.

This transaction is subject to the completion of legal processes.

Since entering the market in 1994, PepsiCo has undertaken an investment programme of more than 500 million USD and now has five beverage manufacturing plants in Vietnam. The country is a high priority market in PepsiCo’s aggressive emerging and developing market growth plans.