15 October 2003 09:00
UNILEVER, PEPSICO SET UP VENTURE TO PROMOTE LIPTON DRINKS
MOSCOW. Oct 15 (Interfax) - Unilever and PepsiCo have created a joint venture to expand significantly the marketing
and distribution in selected markets of Unilever's range of Lipton ready-to-drink (RTD) tea - strengthening
Lipton's lead position within the fast-growing global RTD tea market.
The creation of the 50-50 joint venture - "Pepsi Lipton International" - is in line with Unilever's
Path to Growth strategy in its focus on a leading brand, its move into new channels and its drive into new markets for
sustained future growth. It will enable Lipton to accelerate its growth, building on its current leading share of the 16
billion liter global RTD tea market.
The venture will target the "white space" markets where Lipton has no current presence and it is
anticipated that significant business opportunities will come from the key high-potential markets where Pepsi is already
strong. A large number of markets with existing Lipton RTD tea business will also be targeted in coming months - Brazil,
Spain, Greece, Poland, Czech Republic, Slovakia, Hungary, Albania, Romania, Thailand, Singapore, Vietnam, Australia,
Turkey, Egypt, Saudi and the 6 Gulf States.
Pepsi Lipton International is seen as a logical expansion of an earlier joint venture - the Pepsi Lipton Tea
Partnership - set-up by the two companies for the North American market some 10 years ago and firmly established as the
leading RTD tea player in both the United States and Canada.
Pepsi Lipton International will be headed by a general manager reporting to a board of directors drawn equally from
Unilever Bestfoods and Pepsi.
Unilever is one of the world's largest consumer products companies with annual sales in excess of 48 billion
euros. It produces and markets a wide range of foods and home and personal care products, its internationally known
brands including Lipton, Knorr, Hellmann's, Dove, Axe and Surf. It operates in 150 countries worldwide.
The company has been working in Russia for 10 years. Unilever currently has four companies in Russia and has branches
in 72 Russian cities.
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