Pepsi to Invest $1 Billion In Russia

On Sunday, PepsiCo and Pepsi Bottling Group (PBG) announced their plan to invest $1 billion in Russia over the next three years. This will bring the total of their cumulative investment in Russia to over $4 billion.

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The investment is part of Pepsi’s strategy to expand in emerging markets. The company first began their expansion efforts in Russia in the late 1990s when they opened a beverage plant followed by a snack manufacturing facility in Kashira in 2002.

“Russia is a very attractive growth market,” said PBG Chairman and Chief Executive Officer Eric Foss. “The investments we’re making in our Russia business are creating new jobs, providing us with the flexibility to produce a wider range of beverage offerings for consumers, and enabling us to better serve our valued retail partners. Our new plant in Domodedovo reflects our serious commitment to future expansion in Russia. We’re looking forward to playing an active role in the country’s business community for many years to come.”

The new beverage facility is opening this week in Domodedovo, followed by a new snack manufacturing plant later this year. PepsiCo and PBG also plan to build a state-of-the-art infrastructure for warehousing and distribution for the Lebedyansky juice business.

Pepsi’s history in Russia began in 1959 when former PepsiCo Chairman and Chief Executive Officer Donald M. Kendall, then Pepsi-Cola International President, personally introduced Soviet Chairman Nikita Khrushchev to Pepsi-Cola at the historic American National Exhibition in Moscow.

“We are particularly proud that we are marking 50 years since the introduction of Pepsi-Cola to Russian consumers,” said PepsiCo Chairman and Chief Executive Officer Indra Nooyi. “Today we are optimistic about the future of Russia, and we look forward to continuing to build our businesses here.”