PepsiCo Acquires 80% Stake in Juice Maker Sandora

PepsiCo, the world’s second largest soft-drink producer, and bottler PepsiAmericas will form a joint venture to purchase an 80% stake in Ukraine’s largest juice maker, Sandora, for USD 542 mln. The transaction is expected to be completed during 3Q07. According to a release, the companies intend to acquire the remaining 20% stake by November. Sandora produced 47% of Ukrainian juice in 2006. Olha Pankiv: BBH Ukraine (owner of Slavutych (SLAV) and Lvivska pyvovarnya), the exclusive Pepsi bottler in Ukraine, says there will not be an immediate change in their marketing plans related to Pepsi products and refused to comment further. In 2000 PepsiCo signed an agreement for a 20 year exclusive partnership with BBH Ukraine. This year BBH announced plans to increase marketing spending on Pepsi, which has been loosing its market share in 2005-2006.