Printer Friendly

A&W BRANDS, INC. AND PEPSI-COLA INTERNATIONAL ASIA DIVISION SIGN AGREEMENT TO BOTTLE AND DISTRIBUTE A&W BRANDS PRODUCTS IN ASIA

 A&W BRANDS, INC. AND PEPSI-COLA INTERNATIONAL ASIA DIVISION
 SIGN AGREEMENT TO BOTTLE AND DISTRIBUTE A&W BRANDS PRODUCTS IN ASIA
 MULTI-YEAR AGREEMENT COMBINES SOLID A&W TRADEMARKS
 WITH PCI DISTRIBUTION IN ASIA
 WHITE PLAINS, N.Y., Sept. 22 /PRNewswire/ -- A&W Brands, Inc. (NASDAQ: SODA) and Pepsi-Cola International's Asia Division signed an agreement that will increase distribution of A&W soft drinks and further expand PCI Asia's brand portfolio throughout Asia. The deal represents some US$500 million in retail sales of A&W brands over ten years.
 The agreement combines the brand and distribution strengths of the two companies to tap the tremendous potential of Asia's diverse flavors category.
 Today, flavors account for approximately 25 percent of industry sales in Asia, or almost 12 billion 8-ounce servings each year. With annual growth averaging 6 percent, the flavors category is projected to reach retail sales of US$4 billion by the year 2000. The root beer category currently totals 40 million 8-ounce cases.
 "This alliance with A&W, one of the finest niche beverage companies, is another step toward realizing our goal of becoming a full-service beverage company," said Leslie G. Ham, President of PCI Asia. "The power of our distribution system with the solid brand equity of A&W in Asia is an unbeatable combination."
 "The A&W trademark in Asia has become synonymous with great root beer," said M.L. Lowenkron, Chairman and Chief Executive Officer of A&W Brands, Inc. "Now, whenever consumers want to reach for a root beer, A&W will be there. We hope to make A&W as widely available as Pepsi. We also expect the agreement to have minimal short-term impact, but provide expanded long-term opportunities."
 Under the terms of the agreement, PCI Asia has the exclusive rights and license to manufacture, bottle, distribute and market A&W Root Beer, A&W Cream Soda, Squirt and Vernors brands in 20 markets throughout Asia.
 PCI Asia currently distributes A&W Root Beer in Guam and Indonesia. Distribution in other markets will begin later this year.
 The agreement comes at a time when PCI Asia is experiencing record sales. Over the past five years, the division has grown at a compounded annual rate of 13 percent, outpacing the region's industry average of 7 percent.
 PCI Asia is a division of Pepsi-Cola International, which has sales of $1.5 billion and is the fastest growing division of PepsiCo. PCI operates in over 165 countries and leads in over 55 markets. Major PCI brands are Pepsi-Cola, 7Up lemon-lime, and Mirinda flavors. Total PepsiCo, Inc. (NYSE: PEP) sales, including restaurant and snack-food divisions, exceed $19 billion.
 A&W Brands, Inc. markets eight carbonated soft drinks in four flavor categories plus ready-to-drink lemonade, iced tea, and a sports drink. These brands include A&W Root Beer, diet A&W Root Beer, A&W Cream Soda, diet A&W Cream Soda, Squirt, Diet Squirt, Vernors, diet Vernors, Country Time Lemonade, Tetley Tea and Everlast Sports Drink.
 -0- 9/22/92
 /CONTACT: Ernest J. Cavallo of A&W Brands, 914-397-1700; Barry Holt of Pepsi-Cola International, 914-767-6000; or Michael Staveley-Taylor of PCI Asia, in Singapore, (65) 291-5911/
 (SODA PEP) CO: A&W Brands, Inc.; Pepsi-Cola International; PepsiCo Inc. ST: New York IN: FOD SU:


GK -- NY037 -- 2097 09/22/92 10:35 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 22, 1992
Words:553
Previous Article:MOLECULAR BIOSYSTEMS ANNOUNCES LICENSE OF ITS ANTISENSE PATENTS
Next Article:SONY KIDS MUSIC SIGNS LANDMARK ENTERTAINMENT GROUP TO PRODUCE 'CAMP CALIFORNIA' CHILDREN'S ALBUM
Topics:


Related Articles
PEPSI-COLA TO DISTRIBUTE OCEAN SPRAY JUICES
PURE TECH INTERNATIONAL, INC. ANNOUNCES LONG TERM SUPPLY AGREEMENT WITH PEPSI-COLA METROPOLITAN BOTTLING COMPANY, INC.
PETROLEUM RETAILERS FILL UP ON PEPSI-COLA PRODUCTS; FREEDOM OF CHOICE COMES TO GAS MARTS
PEPSI-COLA INKS FIVE-YEAR DEAL WITH TRANS WORLD AIRLINES; EXTENDS CONTRACT WITH AMERICA WEST
AIR FRANCE AND PEPSI-COLA SIGN GLOBAL SUPPLY DEAL; AIRLINE NAMES PEPSI-COLA 'OFFICIAL SOFT DRINK' ON ALL INTERNATIONAL ROUTES
MTV AND PEPSI-COLA FORM FIRST-OF-ITS-KIND INTERNATIONAL MEDIA AND MARKETING ALLIANCE
Pepsi Signs Global Deal to Become Major Partner of The 1999 Cricket World Cup
Suntory and PepsiCo Form Strategic Alliance in Japan
Brahma and PepsiCo Forge Franchise Partnership in Brazil
Big Boy Restaurants Choose Pepsi as Exclusive Beverage Supplier.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters