PepsiCo has revealed its intention to buy 66% of Wimm-Bill-Dann Foods for USD$3.8 billion (NZD$4.95 billion) with plans to acquire the remaining shares following completion of the initial deal, according to AP-Food Technology.com.
Acquiring Wimm-Bill-Dann will allow PepsiCo to significantly expand its stake in the Russian market and build its portfolio of dairy products and juices.
PepsiCo said Wimm-Bill-Dann, which has grown in 18 years from a one room business to a company employing 16,000 people, is a leader in the dairy market and holds a solid position in juice.
The full acquisition, which values Wimm-Bill-Dann at $5.4 billion, is designed to help PepsiCo achieve its nutritional growth and emerging market ambitions.
A deal will raise PepsiCo’s annual global revenues from nutritious and functional foods from about $10 billion to nearly $13 billion, taking it a step closer to its $30 billion target by 2020.
Commenting on the acquisition, Indra Nooyi, PepsiCo chairman and CEO, focused on the opportunity a tie-up with Wimm-Bill-Dann presents in the dairy segment.
Nooyi said: “Dairy has a huge, untapped potential to bridge snacks and beverages. We see the emerging opportunity to ‘snackify’ beverages and ‘drinkify’ snacks as the next frontier in food and beverage convenience.”
With $5 billion in revenue, PepsiCo will also become twice as large as its nearest food and drink rival in Russia. Its presence in key markets in Eastern Europe and Central Asia will increase as well. More at AP-Food Technology.com
