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The Next Battleground for PepsiCo & Coca-Cola

Both companies say that Vietnam is a critical emerging market


Facing slow growth in developed markets, soft drink and snack food giants Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP) 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.

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.

The Big Problem With Coca-Cola Stock
The Big Problem With Coca-Cola Stock

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.

Article printed from InvestorPlace Media,

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