PepsiCo could start distributing snack brands in the Asian country of Myanmar this year.
The world’s FMCG companies are eyeing the Asian country as they hope economic reforms will follow recent political reform in the state. PepsiCo already sells drinks brands Pepsi-Cola, 7-Up and Mirinda through an agreement with local distributor Diamond Star.
The US food and beverage giant told just-food some snack brands could also appear in Myanmar soon.
“We are finalising plans to begin distributing our snack brands in Myanmar this year,” a spokesperson said. He did not name the brands that could be sold in the market or the identity of any local distribution partner.
However, the prospect of PepsiCo snack brands going on sale in Myanmar indicates the potential the company sees in the market. The spokesperson said PepsiCo was also looking at investing in the country’s agriculture sector to support its plans for its snacks business in the market and the wider region.
“Agriculture is a key part of our broader growth strategy for the market and we are actively exploring opportunities for agricultural investment – making investments to support local farmers to help spur the growth of the country’s agricultural sector, growing potatoes that can fuel our snacks business in the region,” the spokesperson said.
“This kind of investing in local agriculture is a model that has been very successful for us in other developing and other emerging markets.” PepsiCo, meanwhile, has recently signed deals to sell drinks at two foodservice operators in the country. The company is also studying setting up a drinks plant in Myanmar.
Last week, PepsiCo chairman and CEO Indra Nooyi visited Myanmar to co-chair the World Economic Forum on East Asia 2013 event. She called Myanmar “a story that is just beginning to unfold”. She added: “Political reform is happening here and as economic reform starts to happen here in Myanmar, I think this is going to be an unbelievable growth story for many years to come.”