PepsiCo Shelves Russian Drinks Plant After Buying Wimm-Bill-Dann

PepsiCo Inc. (PEP) shelved plans to build a $140 million drinks plant in Russia after acquiring local dairy and juice producer OAO Wimm-Bill-Dann Foods in 2011, the company said today in an e-mailed statement.

The company announced it would build the plant in Rostov region, southern Russia, in 2010. The plan was “delayed indefinitely” after PepsiCo bought Will-Bill-Dann, becoming Russia’s largest food and beverage producer, spokesman Sergey Glushkov said in the statement.

After the acquisition, PepsiCo has 40 production units in Russia and ex-Soviet states and needs to develop them, Glushkov said. The company plans to invest “several hundreds of millions of dollars” to develop in Russia, Zein Abdalla, then-chief executive officer for PepsiCo Europe, said last year. Abdalla became president of PepsiCo in September.

PepsiCo acquired 66 percent of Wimm-Bill-Dann in 2011 for $3.8 billion from Russian controlling owners and then bought out minorities.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.