Dec 02 2010
Pepsi buys stake in Russia
One of the world’s largest soft drinks maker PepsiCo has said that the company is buying a 66% stake in Russian dairy and fruit juice maker Wimm-Bill-Dann for $3.8 billions. Pepsi also said that the company would seek to buy the remaining shares in Wimm-Bill-Dann when the initial deal is finished. The firm added that the deal would increase it’s annual revenues to nearly $13 billion, putting it on course to achieve its strategic goal of building a $30 billion nutrition business by 2020.
Pepsi was always one of the leading soft-drinker makers that ever existed. However, it can’t deny the fact that CocaCola’s market share is way bigger than Pepsi’s. In my opinion, Pepsi is doing the right decision to buy shares in foreign markets, not only in America and Europe. That might be a way for Pepsi to increase it’s profit in the competitive soft-drink markets. However, some mergers, or more specifically, investments, are really risky and dangerous. Pepsi needs to consider those risks before buying any shares in another company, and then still stand in the competition. 