PepsiCo plans to cease production of snacks in the Philippines and focus resources on its “core” business line of beverages.
The board of directors of Pepsi-Cola Products Philippines Inc. (PCPPI), an affiliate of South Korean conglomerate Lotte and PepsiCo, had agreed to discontinue snacks production at the plant in the city of Cabuyao, Laguna province, the US-based food and drinks giant said in a notification to the Philippine Stock Exchange.
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The facility manufactures the company’s Cheetos brand of snacks. All employees will transfer over to other PCPPI roles as PepsiCo hones in on the carbonated and non-carbonated beverages markets, it said.
“PCPPI has decided to reconfigure its business operations and leverage on its core competency in the beverage space, which has been the bottling giant’s core business for 70 years,” the statement read.
PepsiCo said it will continue to import and sell Cheetos in the Philippines along with its other brands of snacks such as Lays, Doritos, Ruffles, Red Rock Deli, Fritos, Tostitos, Sunchips, Smartfood, Munchies and Rold Gold.
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By GlobalData
