PepsiCo, Bottler To Invest $1b In Russia

PepsiCo Inc. (PEP), along with Pepsi Bottling Group Inc. (PBG), is planning to invest $1 billion in Russia over 3 years.

This investment, which will swell total investment by Pepsi in the country to $4 billion, is in-line with the beverage major’s strategy to boost presence in emerging markets.

“This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market,” said CEO Indra Nooyi.

The company also said that it is opening a new beverage plant in Domodedovo, while a snacks manufacturing facility is expected to be operational later this year in the southern city of Azov.

Pepsi and Pepsi Bottling are also contemplating major investments to establish a state-of-the-art warehousing and distribution infrastructure for the Lebedyansky juice business.

PEP, a Zacks #2 Rank (”Buy”) stock, has advanced about 1% today on lower-than-usual volume of approximately 5.1 million, compared to the average daily volume of about 7.6 million.

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