PepsiAmericas forms j.v. with CABCORP
May 18, 2009
by FoodBusinessNews.net Staff
MINNEAPOLIS — PepsiAmericas, Inc. has formed a joint venture with the Central America Beverage Corp. (CABCORP) that will combine PepsiAmericas’ Caribbean business, excluding the Bahamas, with CABCORP’s Central American operations, including Guatemala, Honduras, El Salvador and Nicaragua. In addition to combined operations, the venture will produce and sell an expanded product portfolio across the aforementioned territories.
CABCORP, which is the 12th largest company in Central America with 2008 sales of $480 million, will control 82% of the joint venture, with PepsiAmericas controlling the remaining 18%. CABCORP is the oldest franchise of Pepsi in Latin America, and has been distributing, manufacturing and selling Pepsi-Cola products since 1942
PepsiAmericas is the world’s second-largest manufacturer, seller and distributor of PepsiCo beverages, and had 2008 sales of $4.9 billion.
"The combination of our Caribbean business with CABCORP provides the best strategic alternative to create value from this region," said Robert C. Pohlad, chairman and chief executive officer of PepsiAmericas. "In addition to leveraging scale and expertise, we believe the formation of this joint venture will allow us to participate in the higher growth Latin American markets where CABCORP currently operates."