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PEPSI-COLA INTERNATIONAL AND QUADRANT-AMROQ ANNOUNCE MAJOR ROMANIAN PRODUCTION JOINT VENTURE

 PEPSI-COLA INTERNATIONAL AND QUADRANT-AMROQ ANNOUNCE
 MAJOR ROMANIAN PRODUCTION JOINT VENTURE
 NEW VENTURE TO GENERATE OVER U.S. $500 MILLION
 IN RETAIL SALES OF SOFT DRINKS
 INCLUDES THE INTRODUCTION OF PLASTIC BOTTLES TO MARKETPLACE
 BUCHAREST, Romania, May 5 /PRNewswire/ -- In a move that will widen the leadership position of Pepsi-Cola products in Romania, Pepsi-Cola International (PCI) and Quadrant-Amroq Bottling Company Limited (QABCL) today announced the opening of a new state-of-the-art bottling facility in Bucharest, the nation's capital.
 PCI formally joined forces with QABCL last year, when it appointed the company the exclusive Pepsi franchisee for Romania. Last December, QABCL teamed up with Flora S.A., a private Romanian corporation, to form one of the ten largest joint ventures in Romania. Called Sitaco S.A., the joint venture will operate one of the largest Pepsi-Cola facilities in Eastern Europe.
 With today's opening of the new plant, Sitaco S.A. will have the capacity to produce over 14 million 8-ounce cases of Pepsi products. Over the next five years, the new joint venture will generate an estimated U.S. $500 million in retail sales of soft drinks and create approximately 5,000 new jobs in the country.
 QABCL is affiliated with the U.S.-based investment and management group Quadrant Management, Inc. Quadrant currently manages assets over U.S.$300 million in numerous businesses in the United States and internationally.
 According to David Jones, president of Pepsi-Cola International's Middle East/Africa/Eastern Europe division, the company decided to team with QABCL following the economic and political changes in Romania over the last two years.
 "The combination of our three companies will add power to Pepsi's already commanding lead in the carbonated soft-drink business in Romania," he said. Pepsi products are the most popular foreign-branded soft drinks in Romania, outselling its nearest competitor by a margin of six to one.
 The joint venture's five year goal is to service the entire Romanian market with at least 50 million cases of 8-ounce bottles. To meet that target, existing Pepsi facilities in Romania will be expanded and new lines will be added to supplement production. Soft drink demand currently outstrips production in this nation of 24 million consumers.
 The upgrading of Pepsi facilities will also include the immediate introduction of plastic bottles (PET), a PET production line -- a technology new to Romania, new carbonate technology from Denmark, fountain dispensing technology and equipment to produce the new Pepsi graphics locally.
 "We are fortunate to be working with such strong partners as PCI and Flora toward developing a model Pepsi operation, not only by historical Romanian standards but also by international standards," said Aviad Meitar, chairman of QABCL.
 Meitar also said that an important part of the effort to build a closer relationship with Romanian consumers will be the development of an advanced distribution network, including sophisticated routing techniques and the deployment of large capacity trucks and cold-drink equipment.
 QABCL's management team, comprising executives sourced from around the world, has business experience in both advanced and developing countries, especially in manufacturing and distribution in the food and beverage industry.
 "We are committed to working with progressive Romanian business partners in order to preserve their intimate knowledge of local consumer habits and business culture, as well as to tap their strong work ethic and technical abilities," noted Meitar.
 Pepsi-Cola's ties with Romania date back to 1965 when it became the first country in the former Eastern Europe Bloc to produce Pepsi. The first Pepsi plant was established in Constanta, a port on the Black Sea. Two other production facilities were added later -- "Flora" in Bucharest in 1973, and "30th Decembrie," located on the outskirts of Bucharest, in 1977. Until recently, Pepsi was the only Western-branded consumer product to be locally-produced in Romania.
 Pepsi-Cola International markets some of the world's largest soft drink brands in over 165 countries and territories. It is one of PepsiCo's fastest growing divisions, with 1991 sales exceeding U.S. $1.5 billion. PCI is the soft drink leader in some 60 markets worldwide.
 -0- 5/5/92
 /CONTACT: Barry Holt of Pepsi-Cola International, 914-767-6150/
 (PEP) CO: Pepsi-Cola International ST: New York IN: FOD SU: JVN


KD -- NY021 -- 6404 05/05/92 09:24 EDT
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Publication:PR Newswire
Date:May 5, 1992
Words:699
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