Pepsi offers $6bn to buy Pepsi Bottling Group and PepsiAmericas

PepsiCo just offered a $6 billion bid to purchase both of these bottlers, which bottle and distribute nearly 80% of PepsiCo’s beverage volume in North America.  Chief Financial Officer Richard Goodman declares that this will allow Pepsi to negotiate with retailers directly, allowing for smaller more niche products to be carried by the bottlers.

Indra Nooyi, Chief Executive Officer states, “There is a need to be more nimble given the increasing role of (non-carbonated beverages), retailer consolidation and the changing competitive landscape.”  Nooyi means that by cutting out the bottler, Pepsi will operate on a more efficient scale because of their ability to persuade retailers to carry a greater variety of Pepsi products including new innovations.

More on this story later as it unfolds and develops.

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