Report: Pepsi signs distributor agreement with Iraqi soft drink company
Despite the popular boycott of US-made products in the Middle East, American soft drink major Pepsico has signed an agreement with Baghdad Soft Drinks to relaunch its cola in Iraq, reported the Wall Street Journal.
Baghdad Soft Drinks was Pepsi’s distributor in Iraq prior to 1990, before the Arab state was constrained by UN economic sanctions. Pepsi will begin shipping its cola beverage and new glass bottles to Iraq with the next few months, the newspaper said.
The Middle East is one of the few markets where Pepsi enjoys a lead over its rival Coca-Cola. Pepsi benefits from the notion in the region that Coke is a pro-Israel company since it holds two thirds of the soft drink market in the Jewish state.
The soft drink business has become a mini-battlefield in the Middle East, where local retailers fight to drive Pepsi and Coca Cola out of the region. The two most well-know symbols of American culture have been met with local competition from upstart sodas such as Iran’s Zamzam and Tunisian-owned Mecca Cola that call on Muslims to boycott major American brands. — (menareport.com)
© 2004 Mena Report (www.menareport.com)