Pepsico Inc: Key Developments
PepsiCo Inc. And Almarai Company Limited Joint Venture International Dairy and Juice Limited Acquires Beyti
December 30, 2009 |
| International Dairy and Juice Limited (IDJ), a joint venture between PepsiCo Inc. and Almarai Company Limited, announced that it has acquired Egypt's International Company for Agro-Industrial Projects (Beyti), a producer of high-quality dairy and juice products. IDJ acquired the 100% stake in Beyti from Almarai, which acquired it in October 2009 and transferred it to the joint venture at cost. Financial terms of the transaction were not disclosed. |
Suntory To Sell Drinks Throughout China Via PepsiCo Inc. Tie Up-DJ
December 27, 2009 |
| Dow Jones reported that Suntory Holdings Ltd. plans to sell beverages in all of China starting next year through a partnership with PepsiCo Inc., according to the Nikkei. The pair are expected to sign an agreement covering China next month. Under the deal, sales of Suntory products will be handled by regional PepsiCo-affiliated sales companies. |
PepsiCo Inc. Updates FY 2009 Guidance; Reaffirms FY 2010 Guidance
December 8, 2009 |
| PepsiCo Inc. announced that for fiscal 2009, it expects constant currency net revenue to be up about 5%. The Company also expects division operating profit to increase about 6% to 7% and earnings per share (EPS) to increase about 5% to 6%, each in core constant currency, off of its fiscal 2008 core EPS of $3.68. Based on current spot rates, foreign exchange translation would represent about a five percentage point adverse impact to PepsiCo's full-year, core constant currency EPS. For fiscal 2010 the Company reaffirms its target of 11% to 13% growth for core constant currency EPS off of expected fiscal 2009 core EPS. This target excludes one-time costs to achieve the synergies associated with its acquisitions of PBG and PAS and assumes the Company completes the acquisitions by the end of the first quarter of 2010. The Company reported revenues of $43.251 billion and EPS of $3.68 in fiscal 2008. According to Reuters Estimates, analysts were expecting the Company to report revenues of $43.210 billion for fiscal 2009; revenues of $51.538 billion and EPS of $4.22 for fiscal 2010. |
PepsiCo Inc. Reaches Agreement To Distribute Certain Dr Pepper Snapple Group Inc.'s Brands
December 8, 2009 |
| PepsiCo Inc. announced that it has reached an agreement with Dr Pepper Snapple Group, Inc. (DPS) to manufacture and distribute certain DPS products following completion of PepsiCo's acquisition of its two anchor bottlers, The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS). Under the terms of the agreement, DPS will receive an upfront payment of $900 million payable upon closing of the acquisitions. In exchange, PepsiCo will be entitled to manufacture and distribute Dr Pepper and certain other DPS products in the territories where they are currently distributed by PBG and PAS. The agreement between PepsiCo and DPS, which will replace existing agreements PBG and PAS have with DPS, will have an initial term of 20 years, with automatic 20 year renewals thereafter. Under the new agreement, PepsiCo will distribute: Dr Pepper, Crush and Schweppes brands in the United States; Dr Pepper, Crush, Schweppes, Vernors and Sussex brands in Canada; and Squirt and Canada Dry brands in Mexico. |
PepsiCo Inc.'s Pepsi Bottling Ventures Finalizes Acquisition Of South Carolina Bottler
December 4, 2009 |
| PepsiCo Inc.'s Pepsi Bottling Ventures, LLC (PBV) announced that it has completed its acquisition of Pepsi Cola Bottling Company of Conway-Myrtle Beach, Inc., the Pepsi-Cola franchise bottler based in Conway, South Carolina. The financial terms of the transaction were not disclosed. |
Suntory To Buy PepsiCo Inc.'s Unit-DJ
December 3, 2009 |
| Dow Jones reported that according to The Nikkei, Suntory Holdings Ltd. will buy a South Carolina unit of PepsiCo Inc. Suntory and Kirin Holdings Co. step up overseas acquisitions ahead of their planned integration. Suntory will spend JPY10 billion to buy the South Carolina-based Pepsi Cola Bottling Co. of Conway-Myrtle Beach Inc. The firm purchases syrups and other ingredients from PepsiCo and bottles and markets soft drinks in South Carolina. Through Pepsi Bottling Ventures LLC, a joint operation owned 65% by Suntory and 35% by PepsiCo, Suntory will buy the assets, exclusive sales rights and other property of the South Carolina firm from family members of its founders. |
PepsiCo Inc. Declares Dividend
November 13, 2009 |
| PepsiCo Inc. announced that it has declared a quarterly dividend of $0.45 per share on PepsiCo common stock. The dividend is payable January 4, 2010, to shareholders of record on December 4, 2009. This quarterly dividend is a 6% increase versus the comparable year-earlier period. |
Judge Vacates $1.26 Billion Ruling Against PepsiCo Inc.; Company To Defend Itself in Water Case-AP
November 6, 2009 |
| The Associated Press reported that a judge has tossed out a decision, for now at least, that could have cost PepsiCo Inc. $1.26 billion after the Company didn't respond to a lawsuit claiming it stole the idea for bottled water. The decision by a Wisconsin court means PepsiCo will get its say in court, now that it has found out about the case. Two men claim PepsiCo violated trade secrets and stole their idea to sell bottled water. They sued the Company and two Wisconsin distributors in April but PepsiCo didn't respond for several reasons, including the fact that a secretary who received letters relating to the case failed to act on them. Last month, a judge sided with the men and gave them a default $1.26 billion judgment, granting them the award without a trial. When PepsiCo finally learned of the case, after the judgment, the Company asked the court to toss out the ruling or at least give it a chance to fight the accusations. No future court dates have been set. The lawsuit, which asked for a jury trial and damages of more than $75,000, accuses PepsiCo of misusing trade secrets. It also names Wis-Pak Inc. and Carolina Canners Inc., companies that make and distribute PepsiCo products, and Thomas M. Hiles, then the executive vice president of Carolina Canners. The men claim they entered written confidentiality agreements about a new beverage they were calling U.P. with executives of Wis-Pak and Carolina Canners in 1981. |
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