Carlsberg Signs Bottling Deal With PepsiCo in Kazakhstan and Kyrgyzstan

By Dominic Chopping

Carlsberg and PepsiCo are expanding their strategic partnership that will see the Danish brewer become the U.S. beverage company's bottler in Kazakhstan and Kyrgyzstan from Jan. 1, 2026.

The companies have agreed to cooperate in the production, sale and distribution of non-alcoholic beverages, with Carlsberg taking over the PepsiCo franchise to produce non-alcoholic beverages in the two countries.

Carlsberg said it plans to invest more than 100 million euros ($110.1 million) in building a new production facility for soft drinks in Kazakhstan, which should deliver a double-digit return on invested capital from year one and will be accretive to group return on invested capital by year three.

Carlsberg and PepsiCo already have existing bottling agreements in Norway, Sweden, Switzerland, Cambodia and Laos. Earlier this year, Carlsberg agreed to buy London-listed soft drinks maker Britvic, which, upon completion, would allow Carlsberg to produce and distribute soft drinks for PepsiCo in the U.K. and Ireland.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

September 12, 2024 05:13 ET (09:13 GMT)

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