PepsiCo j.v. acquires Egyptian dairy, juice company
December 30, 2009
by Eric Schroeder
DUBAI, UNITED ARAB EMIRATES — International Dairy and Juice Ltd. (I.D.J.), a joint venture between PepsiCo, Inc. and Almarai Co., has acquired the International Company for Agro-Industrial Projects (Beyti) in Egypt.
Established in 1998 with the acquisition of the largest commercial dairy farm in Egypt, Dallah AlBarakah, Beyti has grown into various sectors of the dairy industry, including milk, yogurt and cheese, as well as juice products.
“The acquisition of Beyti is an important step forward for our joint venture with Almarai,” said Saad Abdul-Latif, chief executive officer of PepsiCo Asia, Middle East and Africa. “Beyti’s dairy and juice brands build on our commitment to world-class quality, while addressing consumers’ need for nutrition as well as fun and refreshment.”
Under terms of the transaction, I.D.J. acquired a 100% stake in Beyti from Almarai, which bought Beyti in October 2009 and transferred it to the joint venture. The companies said the transaction complements PepsiCo’s existing market leadership in Egypt in non-alcoholic beverages and savory snacks, and expands Almarai’s leadership in dairy outside its core markets within the Gulf Cooperation Council.
I.D.J. was formed in 2009 to focus on opportunities in Southeast Asia, Africa and the Middle East. The venture was established to capitalize on Riyadh, Saudi Arabia-based Almarai’s expertise in the dairy industry and Purchase, N.Y.-based PepsiCo’s knowledge of the juice market.