PepsiCo and Calbee strategic alliance

PepsiCo is to start production of snack products in alliance with Japan’s largest snack company Calbee Foods.

The companies will jointly produce an assortment of products, including vegetable snacks and breakfast cereals.

The agreement, subject to the approval of Japanese government authority, means that PepsiCo will give Calbee an undisclosed financial sum and its Frito-Lay business in return for owning a 20 per cent share in the new company and having a seat on the Calbee board of directors.

The businesses currently generate combined annual revenues of approximately $1.4 billion (€1bn), and they have aims to be distributing to consumers across Japan and in major snack categories.