Pepsi's Westchester bottler adds Nassau, Suffolk distribution

PepsiCo Inc.'s net income rose 18 percent to PepsiCo Inc.'s net income rose 18 percent to $1.9 billion in the second quarter, as customers in emerging markets bought more snacks and drinks. (July 19, 2011) Photo Credit: AP

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Purchase-based PepsiCo and two of its independent bottling and distribution firms have agreed to a three-way territory swap in which the firm that controls distribution in Westchester County and the boroughs of New York City would add nearby Nassau and Suffolk counties, the companies announced Wednesday.

Under the deal PepsiCo would trade five counties of the company-owned bottling franchise in North Carolina to Pepsi Bottling Ventures LLC in exchange for 11 counties in Vermont and 18 in Idaho.

Pepsi Bottling Ventures is a joint undertaking between majority owner Suntory Holdings, based in Osaka, Japan, and PepsiCo.

PBV, meanwhile, would sell rights to distribute in Nassau and Suffolk to the Pennsauken, N.J.-based Honickman Group's Pepsi-Cola Bottling Company of New York. The Honickman Group controls distribution in Westchester.

A PepsiCo executive said that the deal is designed to consolidate operations geographically.

"This move drives operating efficiencies and improved customer service, one of our top priorities," Al Carey, chief executive of PepsiCo Americas Beverages, said in a statement. "Our strong independent bottlers will continue to play a big role in helping us do that -- especially at the local level."

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"Combining contiguous territories to build regional strength makes sense, particularly in New York and North Carolina, where the synergies are clear," Carey said.

The sale price for the Nassau and Suffolk territories was not disclosed.

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