PepsiCo Inc., one of the world's largest food and beverage companies, has announced plans to invest USD1 billion in the Chinese market in the next four years.
Indra K. Nooyi, president and CEO of PepsiCo, announced this plan while on a visit to China. She said that this will be PepsiCo's largest investment in China for 30 years. The investment is consistent with the company's broader global strategy, which is to invest in high-growth developing markets.
PepsiCo's investment in China will focus on several important projects, including expanding manufacturing capacity, especially in the central and western areas of China. The fund will also be used to enlarge the company's local research and development organizations and to enhance the company's sales strength, so as to widen the distribution of its products. In addition, PepsiCo plans use the investment to establish its brand and to develop new customized products for Chinese consumers.
The comprehensive investments are expected to create thousands of new jobs in China, where PepsiCo and its bottling plants already have over 22,000 directly hired employees.
China has been the marketplace for many of PepsiCo's brands, including Pepsi Cola, Frito-Lay snack food, Tropicana juice, Quaker Oats, and Gatorade.