14th Sep 2007 12:00
Unilever PLC14 September 2007 UNILEVER AND PEPSICO TO EXPAND READY-TO-DRINK TEA JOINT VENTURE • Agreement will double current International Joint Venture volume • Leverages complementary strengths of Unilever's Lipton brand and tea know-how with Pepsi bottling and distribution network September 14th, 2007 PepsiCo and Unilever today announced they have agreed to expand theirInternational partnership for the marketing and distribution of ready-to-drinktea products under the Lipton brand, the world's best-selling tea. The new agreement adds 11 countries to the partnership's existing Liptonready-to-drink tea business. The business in these countries - eight in Europe(Germany, Italy, France, Netherlands, Switzerland, Austria, Belgium andPortugal) as well as Korea, Taiwan and South Africa - had combined systems salesto the trade of around €300m in 2006. The new agreement effectively completesthe partnership and creates the leading global ready-to-drink tea business. The new agreement builds on the original 1991 Pepsi Lipton Tea Partnership(PLTP) North American joint venture that established Lipton as the leadingready-to-drink tea brand in the United States, and on the subsequent 2003 PepsiLipton International (PLI) joint venture that currently spans more than 40countries and has enjoyed strong double-digit volume growth. The new agreement will more than double the volume of the companies' current PLIjoint venture and positions both companies to capture more of the growthopportunities associated with the rapidly expanding global ready-to-drink teamarket. Under the terms of the agreement a mechanism is established for PLI to open newready-to-drink tea markets. Each company will continue to own 50% of the jointventure, with PepsiCo paying Unilever an undisclosed sum for its share of thebusinesses in the new markets being transferred. "This is a wonderful opportunity to strengthen our position in one of thefastest-growing beverage categories," said Michael White, chief executiveofficer of PepsiCo International and vice chairman of PepsiCo. "Lipton is oneof the world's great beverage brands, and will continue to be a key pillar ofour strategy to offer international consumers a portfolio of convenientbeverages to address a wide range of needs." Vindi Banga, Unilever's president for Foods, said: "This agreement gives us theopportunity to build on the tremendous success of the joint ventures to date.It provides an excellent opportunity to realise the long-term potential of theLipton ready-to-drink brand, and Pepsi's expertise in the drinks sector willhelp us drive innovations faster and more competitively." The agreement is subject to receiving approvals from the relevant regulatoryauthorities, employee consultations, and, for Portugal and South Africa,agreement with Unilever's existing partners. The transaction is expected to beeffective from the beginning of January 2008. ----ends---- About PepsiCo PepsiCo (NYSE: PEP) is one of the world's largest food and beverage companies,with 2006 annual revenues of more than $35 billion. The Company employsapproximately 168,000 people worldwide, and its products are sold inapproximately 200 countries. Its principal businesses include: Frito-Lay snacks,Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods.The PepsiCo portfolio includes 17 brands that generate $1 billion or more eachin annual retail sales. PepsiCo's commitment to sustainable growth, defined asPerformance with Purpose, is focused on generating healthy financial returnswhile giving back to communities the company serves. This includes meetingconsumer needs for a spectrum of convenient foods and beverages, reducing thecompany's impact on the environment through water, energy and packaginginitiatives, and supporting its employees through a diverse and inclusiveculture that recruits and retains world-class talent. PepsiCo is listed on theDow Jones North America Sustainability Index. For more information, pleasevisit www.pepsico.com. About Unilever Unilever's mission is to add vitality to life. We meet everyday needs fornutrition, hygiene and personal care with brands that help people feel good,look good and get more out of life. Unilever is one of the world's leading suppliers of fast moving consumer goodswith strong local roots in more than 100 countries across the globe. Itsportfolio includes some of the world's best known and most loved brandsincluding twelve €1 billion brands and global leadership in many categories inwhich the company operates. The portfolio features brand icons such as Flora,Bertolli, Dove, Lux, Pond's, Lynx, Sunsilk, Persil, Cif and Domestos. Unilever has around 179,000 employees in approaching 100 countries and generatedannual sales of €40 billion in 2006. For more information about Unilever andits brands, visit www.unilever.com. UNILEVER SAFE HARBOUR STATEMENT: This announcement may contain forward-looking statements, including'forward-looking statements' within the meaning of the United States PrivateSecurities Litigation Reform Act of 1995. Words such as 'expects','anticipates', 'intends' or the negative of these terms and other similarexpressions of future performance or results, including financial objectives to2010, and their negatives are intended to identify such forward-lookingstatements. These forward-looking statements are based upon currentexpectations and assumptions regarding anticipated developments and otherfactors affecting the Group. They are not historical facts, nor are theyguarantees of future performance. Because these forward-looking statementsinvolve risks and uncertainties, there are important factors that could causeactual results to differ materially from those expressed or implied by theseforward-looking statements, including, among others, competitive pricing andactivities, consumption levels, costs, the ability to maintain and manage keycustomer relationships and supply chain sources, currency values, interestrates, the ability to integrate acquisitions and complete planned divestitures,physical risks, environmental risks, the ability to manage regulatory, tax andlegal matters and resolve pending matters within current estimates, legislative,fiscal and regulatory developments, political, economic and social conditions inthe geographic markets where the Group operates and new or changed priorities ofthe Boards. Further details of potential risks and uncertainties affecting theGroup are described in the Group's filings with the London Stock Exchange,Euronext Amsterdam and the US Securities and Exchange Commission, including theAnnual Report & Accounts on Form 20-F. These forward-looking statements speakonly as of the date of this announcement. Except as required by any applicablelaw or regulation, the Group expressly disclaims any obligation or undertakingto release publicly any updates or revisions to any forward-looking statementscontained herein to reflect any change in the Group's expectations with regardthereto or any change in events, conditions or circumstances on which any suchstatement is based. PEPSICO CAUTIONARY STATEMENT This release contains statements concerning PepsiCo's expectations for futureperformance. Any such forward-looking statements are inherently speculative andare based on currently available information, operating plans and projectionsabout future events and trends. As such, they are subject to numerous risks anduncertainties. Actual results and performance may be significantly differentfrom expectations. PepsiCo undertakes no obligation to update any suchforward-looking statements. Please see PepsiCo's filings with the U.S.Securities and Exchange Commission, including PepsiCo's Annual Report on Form10-K, for a discussion of specific risks that may affect performance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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