Pepsi to buy majority stake in Russia’s Wimm-Bill-Dann
Dec 2nd, 2010 by Jessica Li
PepsiCo said the deal would help it expand in eastern Europe and central Asia
“Soft drinks maker PepsiCo has said it is buying a 66% stake in Russian dairy and fruit juice maker Wimm-Bill-Dann for $3.8bn.”
Since PepsiCo is a well known soft drink brand worldwide, its reputation will have a large impact on any businesses related to them, especially the not that well-known ones: Wimm-Bill-Dann.
For Wimm-Bill-Dann, “The deal is the biggest foreign investment in Russia outside the energy sector”, it brings large opportunity to them to gain good reputation, but also gain knowledge and professional business and marketing skills from PepsiCo’s long and successful experience.
On the other hand, for PepsiCo, “The transaction will establish PepsiCo as the largest food and beverage business in Russian, make it a leader in the country’s fast-growing dairy category and build its presence in key markets in eastern Europe and central Asia”. Therefore, it is in the market-seeking process of PepsiCo’s to become the market leader of soft drink worldwide.
Overall, this deal is a win-win on for both PepsiCo and Wimm-Bill-Dann to increase market share and total business revenue encouraging the businesses to set more competitive and risky goals to expand further in the future.