Pepsi to restructure Middle East operations
Pepsi Cola intends to restructure its products’ manufacturing and bottling operations in the Middle East. According to Al-Hayat daily, Pepsi Cola is now purchasing shares in various local agent firms, and has already established holding firms in Egypt and Jordan to manage the production and sales of its products.
A Saudi businessman has reportedly rejected an $80 million offer by the company to sell his carbonated beverages manufacturing and bottling factory in Jeddah. Mahmoud Said, the owner of the plant, demanded instead $200 million for his factory.
Pepsi Cola has a strong grip on the Middle East market. The company currently controls 79 percent of the carbonated beverage markets in Saudi Arabia. Pepsi’s Dubai branch reported that it had captured nearly 70 percent of the Emirate’s soft-drink sales last year. Production capacity at the Dubai Pepsi plant stands at 30,000 bottle per hour. — (MENA Report)
© 2001 Mena Report (www.menareport.com)