PepsiCo International has indicated its intention to expand in the Russian snack food market, announcing the opening of the company’s second manufacturing facility in the country.
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PepsiCo revealed that it has chosen the town Azov in the Rostov region as the location for its new snacks manufacturing plant. The announcement paves the way for an investment of around US$170m over the next five years in the region, the company indicated, involving the creation of approximately 1,000 new jobs.
The US food and drinks giant said the new facility will provide an opportunity for the company to expand sales throughout Russia. The location was chosen for its “optimal” access to customer distribution and availability of land and utility connections.
PepsiCo’s investment in Rostov will include investments in agricultural programmes in the area which will provide local potato farmers with the tools and training to increase yields and grow superior quality potatoes.
PepsiCo built its first snacks plant in Russia five years ago at Kashira near Moscow. After an investment of some $160m, which also included agricultural programmes, the Kashira plant is now one of the largest snack production units in Russia and continental Europe.
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By GlobalDataMichael White, vice chairman of PepsiCo and CEO of PepsiCo International, said: “I am delighted to confirm our decision to invest in the Rostov region to build our second snacks manufacturing site in Russia. Governor Chub (Vladimir Chub, Governor of Rostov) and his team have provided every assistance to us in finding the best possible site and ensuring we will have access to the necessary infrastructure. We are deeply proud of our business presence in Russia and today’s decision is another vote of confidence from PepsiCo in the future growth and competitiveness of the Russian economy.”
