12.02.10
PepsiCo, Purchase, NY, has agreed to acquire 66% of Wimm-Bill-Dann, Russia's leading branded food and beverage company, for $3.8 billion pending the required government approvals. Following successful completion, PepsiCo will offer to acquire the remaining shares.
According to PepsiCo, the transaction will raise the company’s annual global revenues from nutritious and functional foods from approximately $10 billion today to nearly $13 billion. This moves the company closer to its strategic goal of building a $30 billion nutrition business by 2020.
Wimm-Bill-Dann is a leader in both traditional and value-added dairy products, with a solid position in juice.
"Adding Wimm-Bill-Dann to PepsiCo's portfolio is financially attractive and gives us a strong, high-growth platform in the dairy category," said Indra Nooyi, PepsiCo chairman and CEO. "It also gives us clear leadership in the food-and-beverage industry in Russia, a fast-growing, strategically important market offering abundant opportunity. At the same time, Wimm-Bill-Dann's strong, value-added dairy business immediately advances our global nutrition strategy to provide consumers around the world nutritious foods and beverages that are accessible, affordable and advantaged by science. Dairy has a huge, untapped potential to bridge snacks and beverages. We see the emerging opportunity to 'snackify' beverages and 'drinkify' snacks as the next frontier in food and beverage convenience."
Health and wellness trends around the globe are accelerating, and dairy products offer a number of fundamental health and nutrition benefits, including natural ingredients like calcium and protein, as well as functional benefits like bone health. In developed markets, where the population is aging, these benefits are particularly relevant, and a reason that dairy is far outpacing overall food and beverage growth.
In developing markets, there's an accelerating trend toward branded and packaged dairy.
Dairy has the untapped potential to bridge snacks and beverages, through innovative forms and ingredient combinations.
In Russia, the dairy market has grown at a compound rate of 22% since 2006 to $17 billion, and is expected to grow at a low-double-digit rate for at least the next three years. Over the next five years Russia is forecast to be one of the largest contributors to global dairy growth.
PepsiCo's brands will rank first among food and beverage companies operating in Russia, with approximately $5 billion in revenue. PepsiCo will have six of the 20 largest food and beverage brands in Russia, and three of the top 20 overall brands.
According to PepsiCo, the transaction will raise the company’s annual global revenues from nutritious and functional foods from approximately $10 billion today to nearly $13 billion. This moves the company closer to its strategic goal of building a $30 billion nutrition business by 2020.
Wimm-Bill-Dann is a leader in both traditional and value-added dairy products, with a solid position in juice.
"Adding Wimm-Bill-Dann to PepsiCo's portfolio is financially attractive and gives us a strong, high-growth platform in the dairy category," said Indra Nooyi, PepsiCo chairman and CEO. "It also gives us clear leadership in the food-and-beverage industry in Russia, a fast-growing, strategically important market offering abundant opportunity. At the same time, Wimm-Bill-Dann's strong, value-added dairy business immediately advances our global nutrition strategy to provide consumers around the world nutritious foods and beverages that are accessible, affordable and advantaged by science. Dairy has a huge, untapped potential to bridge snacks and beverages. We see the emerging opportunity to 'snackify' beverages and 'drinkify' snacks as the next frontier in food and beverage convenience."
Health and wellness trends around the globe are accelerating, and dairy products offer a number of fundamental health and nutrition benefits, including natural ingredients like calcium and protein, as well as functional benefits like bone health. In developed markets, where the population is aging, these benefits are particularly relevant, and a reason that dairy is far outpacing overall food and beverage growth.
In developing markets, there's an accelerating trend toward branded and packaged dairy.
Dairy has the untapped potential to bridge snacks and beverages, through innovative forms and ingredient combinations.
In Russia, the dairy market has grown at a compound rate of 22% since 2006 to $17 billion, and is expected to grow at a low-double-digit rate for at least the next three years. Over the next five years Russia is forecast to be one of the largest contributors to global dairy growth.
PepsiCo's brands will rank first among food and beverage companies operating in Russia, with approximately $5 billion in revenue. PepsiCo will have six of the 20 largest food and beverage brands in Russia, and three of the top 20 overall brands.