PepsiCo and its local bottling partner, Pepsi-Cola Products Philippines Inc, are preparing to start manufacturing the Cheetos snack brand in the Philippines.
Under the terms of the agreement, PCPPI will manufacture and distribute Cheetos snack products in the Philippines, with production set to start later this year.
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Announcing the move, PepsiCo said that the creation of a joint snacks and beverages franchise operation reflected its "better together" strategy which focuses on integrating its food and drinks businesses.
"The Philippines is a highly attractive market where both PepsiCo and its partners have a long track record of success with our beverages and foods brands," said Maricelle Narciso, general manager, PepsiCo Philippines. "The establishment of a snacks franchise operation reflects our commitment to bring more locally-made products to our consumers and customers, and to drive synergies in the manufacturing and distribution of our delicious food and beverage products wherever possible."
"This development presents an exciting opportunity for PCPPI to further its vision of becoming a premier food and beverage company in the Philippines," said Furqan Ahmed Syed, President of PCPPI. "Leveraging PepsiCo's established line of snacks is an exciting and strategic step in our first foray into the foods business."
Conglomerate Lotte Group is PCPPI's largest shareholder and PepsiCo said the deal marked "another milestone" in its relationship with the Korean giant. Lotte is also PepsiCo's beverage partner in Myanmar.
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