Bangkok • PepsiCo Inc. has invested $170 million in a new factory in Thailand to stay ahead in one of the few markets where it outsells Coca-Cola after ending a longstanding bottling agreement with a local company.
The plant, located in an industrial estate in Rayong, 90 miles southeast of Bangkok, is one of PepsiCo's largest beverage facilities in the world, Pepsi-Cola (Thai) Trading General Manager for beverages, Jagrut Kotecha, told reporters. It will start production on Nov. 2.
PepsiCo's market leadership in Thailand will be put to test when a 59-year contract with Thai bottler and distributor Sermsuk Pcl. ends on Nov. 1 as the Thai arm of Pepsi-Cola will be cut off from Sermsuk's distribution network.