1) Unilever and PepsiCo formed a 50-50 joint venture called Pepsi Lipton International in 2003 to manufacture and market Lipton Ice Tea variants in 67 countries.
2) The joint venture will leverage the strengths of both Unilever and PepsiCo to significantly expand the marketing and distribution of Unilever's Lipton ready-to-drink tea in new international markets.
3) The partnership is intended to accelerate Lipton's growth in the global ready-to-drink tea market, where it currently holds a leading share, by gaining access to Pepsi's extensive bottling and distribution network and targeting markets where Pepsi is already strong.
1) Unilever and PepsiCo formed a 50-50 joint venture called Pepsi Lipton International in 2003 to manufacture and market Lipton Ice Tea variants in 67 countries.
2) The joint venture will leverage the strengths of both Unilever and PepsiCo to significantly expand the marketing and distribution of Unilever's Lipton ready-to-drink tea in new international markets.
3) The partnership is intended to accelerate Lipton's growth in the global ready-to-drink tea market, where it currently holds a leading share, by gaining access to Pepsi's extensive bottling and distribution network and targeting markets where Pepsi is already strong.
1) Unilever and PepsiCo formed a 50-50 joint venture called Pepsi Lipton International in 2003 to manufacture and market Lipton Ice Tea variants in 67 countries.
2) The joint venture will leverage the strengths of both Unilever and PepsiCo to significantly expand the marketing and distribution of Unilever's Lipton ready-to-drink tea in new international markets.
3) The partnership is intended to accelerate Lipton's growth in the global ready-to-drink tea market, where it currently holds a leading share, by gaining access to Pepsi's extensive bottling and distribution network and targeting markets where Pepsi is already strong.
Unilever and PepsiCo Create 'Pepsi Lipton International' RtD Tea Joint
Venture in Selected International Markets
Lipton was created at the end of the 19th century by a grocer, Sir Thomas Lipton, in Glasgow, Scotland. In 1893, he established the Thomas J Lipton Co., a tea packing company with its headquarters and factory in Hoboken, New Jersey. Lipton teas were an immediate success in the US. Thomas Lipton was knighted by Queen Victoria, who made him Sir Thomas Lipton in 1898 at the age of forty-eight. Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina. "Ice tea is a niche, but fast-growing category. In particular, young urban adults are looking at healthier options such as ice tea," Unilever and PepsiCo have created a joint venture to expand significantly the marketing and distribution in selected markets of Unilever's range of Lipton ready-to-drink (RTD) tea. The creation of the 50-50 JV - "Pepsi Lipton International" - is in line with Unilever's Path to Growth strategy in its focus on a leading brand, its move into new channels and its drive into new markets for sustained future growth. It will enable Lipton to accelerate its growth, building on its current leading share in the global RTD tea market. The JV will target the "white space" markets where Lipton has no current presence and it is anticipated that significant business opportunities will come from the key high-potential markets where Pepsi is already strong. A large number of markets with existing Lipton RTD tea business will also be targeted in coming months - Brazil, Spain, Greece, Poland, Czech Republic, Slovakia, Hungary, Albania, Romania, Thailand, Singapore, Vietnam, Australia, Turkey, Egypt, Saudi and the 6 Gulf States. In 2003, PepsiCo and Unilever formed a global 50:50 joint venture Pepsi Lipton International - to manufacture and market Lipton Ice Tea variants in 67 countries. Peter Thompson, president and CEO of PepsiCo Beverages International (PBI): PEPSI LIPTON is creating a common vision and tremendous synergies together. This new alliance will enable Lipton to strengthen its global position. At the same time, this strategic partnership in one of the fastest growing beverage segments will provide consumers for Lipton in the places that Lipton is not yet known." Unilever is one of the world's largest consumer
products companies. It produces and markets a wide range of foods
and home and personal care products, its internationally known brands including Lipton, Knorr, Hellmanns, Dove, Axe and Surf. It operates in 150 countries and employs some 247,000 people worldwide. PepsiCo is one the world's largest food and beverage companies, with annual revenues of $27 billion. Its principle businesses include FritoLay snacks, Pepsi-Cola beverages; Gatorade sports drinks, Tropicana juices and Quaker foods. PepsiCo's portfolio includes 15 brands that each generates $1 billion or more in annual retail sales. Lipton's lead position within the fast-growing ready-to-drink global tea market is to get stronger after Unilever and PepsiCo announced a joint venture to expand marketing and distribution of the RTD range. Lipton is one of Unilever's largest food brands it is the world's third largest beverage brand as measured by volume. The creation of the 50-50 joint venture, Pepsi Lipton International, will enable Lipton to accelerate its growth, building on its current leading share of the 16 billion global RTD tea market. The joint venture is claimed by the companies to leverage the strengths of both parents to create significant value. The company will principally sell RTD tea concentrate to franchise bottlers, thereby augmenting Pepsi's portfolio of healthy refreshment beverages. Pepsi is also to contribute access to its extensive bottling and distribution network of strong customer relations. The joint venture will target new markets for Lipton where Pepsi is already strong. A large number of markets with existing Lipton RTD tea business are also to be targeted in coming months, including Brazil, Spain, Czech Republic, Slovakia, Thailand, Singapore, Vietnam, Australia and the six Gulf States.