The Next Battleground for PepsiCo & Coca-Cola

by Christopher Freeburn | November 1, 2012 11:02 am

The Next Battleground for PepsiCo & Coca-Cola

Facing slow growth in developed markets, soft drink and snack food giants Coca-Cola (NYSE:KO[1]) and PepsiCo (NYSE:PEP[2]) are scrambling to tap new markets around the world. That race has led them to Vietnam, which is now drawing substantial interest from both companies[3].

Last week, PepsiCo said that it had teamed with Suntory Holdings, a Japanese beverage producer, to develop its business in Vietnam. Under the terms of the agreement, Suntory obtained a 51% stake in PepsiCo’s Vietnam operations, which have seen revenue rocket from $8 billion to $22 billion annually, AFP/Relaxnews notes.

PepsiCo declared Vietnam to be a “high priority market” in a statement announcing the partership with Suntory.

Not to be outdone by its rival, Coca-Cola now says it will invest an additional $300 million to develop its Vietnam business over the next three years. That will bring its total investment in the country to $500 million since 2010.

Shares of both Coca-Cola and PepsiCo rose fractionally in Thursday morning trading.

Endnotes:
  1. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  2. PEP: http://studio-5.financialcontent.com/investplace/quote?Symbol=PEP
  3. substantial interest from both companies: http://www.themalaysianinsider.com/business/article/vietnam-emerges-as-new-battleground-for-pepsico-and-coca-cola

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