PepsiCo to add second snack plant in Russia
June 11, 2007
by FoodBusinessNews.net Staff
St. PETERSBURG, RUSSIA — PepsiCo International plans to build a second snack food manufacturing site in Russia, with the new site being located in the Rostov region in the city of Azov.
"Our business in Russia has been growing quickly, and the second site in Rostov will provide us with the necessary manufacturing capability to meet growing consumer demand for our products, both today and tomorrow," said Paul Kiesler, general manager for PepsiCo Russia snacks.
It was five years ago when the company decided to invest more than $160 million in its first site and related agricultural programs in Kashira, which is near Moscow. The company now will invest about $170 million during the next five years in the region of the new site and create about 1,000 jobs.
The planned investment for Rostov includes investments in agricultural programs in the area, giving local potato farmers tools and training to increase yields and grow higher quality potatoes. PepsiCo already has invested in local Russian farming, with 80% of potatoes used by the Kashira plant being sourced locally. The company would like to source locally 100% of potatoes for this plant in coming years.