PepsiCo and Suntory have agreed to form a strategic alliance in Vietnam in order
to build on PepsiCo’s position in the country and for Suntory to enter what it
deems a priority growth market.

Under the terms of the agreement, Suntory will acquire a 51 per cent stake in
PepsiCo’s Vietnam beverage business, while PepsiCo will be a 49 per cent
shareholder. Suntory and PepsiCo will hold key roles in the management team of
the new joint venture, which will serve as the bottler for both companies in
Vietnam.

PepsiCo and Suntory have a history of working together in other beverage
markets, including the US, Japan and New Zealand. For this deal, PepsiCo will
retain marketing and innovation responsibilities for its portfolio of beverage
brands in Vietnam, which include Pepsi-Cola, 7-UP, Sting, Mirinda, Tropicana
Twister, Lipton and Aquafina.

Henry Park, chief executive of Suntory Beverage & Food Asia, said: “Suntory has
been actively expanding its business foundation to consolidate its position in
growing South-East Asian markets. This alliance is one of our strategic initiatives
to pursue further growth in the region. Suntory is committed to the Vietnam
business together with PepsiCo, our partner of more than 30 years, which has
already established a leading position in Vietnam.”

Umran Beba, president of PepsiCo Asia Pacific, added: “Vietnam is a highly
attractive growth market where PepsiCo is well positioned in the food and
beverage marketplace. We’re focused on expanding our food and beverage
business in Vietnam through continued investment across our portfolio, and our
beverage alliance with Suntory is an important part of our strategy to position
PepsiCo for sustainable long-term growth in the market. Suntory is a world-class
company and proven PepsiCo partner, and we believe their expertise and
capabilities will drive the continued success of our Vietnam beverage business.”