Printer Friendly

PEPSI IN A PICKLE!

 PEPSI IN A PICKLE!
 WASHINGTON, July 6 /PRNewswire/ -- Transport and General Workers


Union issued the following:
 When French food multi-national BSN sold their U.K. snack operations to Pepsico Food International (P.F.I.) they got a good deal.
 The sale covered:
 -- Smiths Crisps (five factories - now only four)
 -- Walkers Crisps (three factories)
 -- Planters (one factory processing nuts)
 Walkers is a high profit company with a strong position in the U.K. market, while Smiths barely makes a profit, and its products are sold with large discounts. After three years of P.F.I. control, Smiths is still not producing the desired returns. In fact, profit remains flat, just above break even. Interestingly, the cost base is lower in Smiths than Walkers, but there is still not profit.
 Rumors indicate that when Pepsi paid $1.35 billion for U.K. operations it was based not on a judgment that Smiths' profits could be pushed up to the level of Walkers. Achieve that and P.F.I. would have a good deal -- but the reality is that high returns from Smiths are elusive and likely to remain so. Hence, it looks as though Pepsi paid too much.
 So maybe this explains why Smiths Crisps are now busy undermining the good industrial relations at their four factories. In fact, the company has given notice on all national agreements and, although in breach of these agreements, are refusing to negotiate wages nationally.
 Workers have voted 834 to 419 in favor of strike action.
 The degree of professionalism within the company is a joke, as a trade union had to explain to the management the difference between arbitration and conciliation.
 The unions are still hoping for last minute talks to avoid a conflict, but Pepsi has certainly gotten themselves in a pickle.
 -0- 7/6/92
 /CONTACT: Brian Revell for the Transport and General Workers Union, 011-44-71-828-7788/ CO: Transport and General Workers Union ST: IN: SU:


IH -- DC006 -- 6643 07/06/92 12:57 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:Jul 6, 1992
Words:331
Previous Article:N.J. BUSINESS OWNERS DONATE $100 MILLION TO GLASSBORO STATE COLLEGE; NAME CHANGE PROPOSED
Next Article:AMERICAN BANK OF CONNECTICUT REPORTS EARNINGS
Topics:


Related Articles
PEPSI-COLA TO DISTRIBUTE OCEAN SPRAY JUICES
PEPSI-COLA'S NEW LOOK HITS NORTHEAST OHIO
BARNES NAMED PRESIDENT FOR PEPSI-COLA SOUTH
STATEMENT BY PEPSI-COLA IN RESPONSE TO ALLEGATIONS RAISED BY RALLY ORGANIZERS AT DETROIT BOTTLING FACILITY
PEPSI-COLA ADDS AVALON WATER TO LINE-UP IN EASTERN UNITED STATES
GABRIELA SABATINI AND PEPSI USE 'POWER SERVE' AS AN ACE IN THE WORLDWIDE COLA WARS; EXCITING NEW TELEVISION COMMERCIAL TO DEBUT
PEPSI-COLA'S NEW FOOTBALL PARTY-THEMED ADS CAPITALIZE ON CHAMPIONSHIP GAME HYPE; MORE THAN 500 DIFFERENT COMMERCIALS URGE GRIDIRON REVELERS TO 'STOCK...
CRYSTAL PEPSI HITS NORTHEAST OHIO; UNIQUE CLEAR COLA BEATS OUT 16,000 ITEMS TO WIN "BEST NEW PRODUCT OF YEAR"
HIGH ON ENERGY AND HUMOR, PEPSI'S NEW 1993 "GOTTA HAVE IT" COMMERCIALS TARGET COMPANY'S YOUTHFUL FRANCHISE
PepsiCo Steps Up Relationship with Jeff Gordon and Hendrick Motorsports.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters