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Last updated at: (Beijing Time) Tuesday, April 09, 2002

Pepsi Confident of Chinese Market, Expects Profit in Three Years

Peter Thompson, president and chief executive officer of Pepsi International Group, reaffirmed his company's confidence in the Chinese market Monday, saying thathe hopes Pepsi will stop making losses in China in three years.


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Peter Thompson, president and chief executive officer of Pepsi International Group, reaffirmed his company's confidence in the Chinese market Monday, saying that he hopes Pepsi will stop making losses in China in three years.

He made the remark at a ceremony marking the 20th anniversary of Pepsi's presence in China and the inauguration of a new packing plant in Shenzhen, Guangdong Province, in south China.

Pepsi to expand business in China
The new plant reflected Pepsi's confidence in Chinese market and its determination to expand its business in China, he said.

Since it started its first plant in Shenzhen in 1982, Pepsi has set up nearly 30 businesses in China, with a total investment of 500 million U.S. dollars and around 10,000 employees.

Pepsi confident of Chinese market despite losses
Though Pepsi's investment in China has failed to produce a profit so far because of huge spendings on marketing, Thompson said he believed in the potential of the Chinese market and the possibility of a profit for Pepsi in the near future.

Zhu Huaxu, president of Pepsi Co. Investment (China) Ltd., explained that Pepsi's 14 packing plants in China had all made profits, but its business in China as a whole is in red if marketing and other costs were taken into account.

As the soda drink market in China still has a large space for growth, Thompson said Pepsi would seek to consolidate and expand its share while looking for opportunities to enter other beverage markets.



About Pepsi
PepsiCo, Inc. was founded in 1965 by Donald M. Kendall, president and chief executive officer of Pepsi-Cola and Herman W. Lay, chairman and chief executive officer of Frito-Lay, through the merger of the two companies.

The company consists of:

  • Frito-Lay Company, the world's largest manufacturer and distributor of snack chips,
  • Pepsi-Cola Company, the world's second largest beverage company
  • Tropicana Products Inc., the world's largest marketer and producer of branded juices


    • PepsiCo's brand names are among the best known and most respected in the world.



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