Printer Friendly

PEPSICO AND MOSCOW METRO LAUNCH TEST OF FOOD SERVICE OPERATION IN CITY'S SUBWAY, THE WORLD'S LARGEST

 MOSCOW, June 10 /PRNewswire/ -- PepsiCo, Inc. and the Moscow Metropolitan today announced a pilot test to offer soft drinks, snacks and restaurant products from mobile carts and kiosks in the Moscow Metro, the world's largest underground transportation system. The new PepsiCo-Moscow Metro partnership, aimed at the passengers who take more than 9 million trips daily on the city's subway system, has the potential to become one of the world's largest metropolitan food service distribution networks.
 Called Metro Express, the program's state-of-the-art carts and kiosks eventually may carry all major PepsiCo brands, including Pepsi- Cola soft drinks, Frito-Lay snacks and restaurant products from Taco Bell, Pizza Hut and KFC. This would mark the first time in the company's history that all of its flagship brands will be sold from a single retail location outside the United States. Initially the carts and kiosks will offer products from Pepsi-Cola and Taco Bell. It is the first time Taco Bell products have been sold in Russia.
 The pilot test will take place over six months, with a total of 17 units to be introduced in eight of the Moscow Metro's 140 stations. The first unit, a cart, was unveiled today at the Moscow Metro's Park Kultury station by representatives from PepsiCo, the Moscow Metropolitan and the Moscow City government.
 "This concept has the power to transform the way Russians consume both soft drinks and fast food because it brings together the world's most powerful brands in the world's largest consumer traffic location," said F. David Jones, president of Pepsi-Cola International's Eastern Europe/Central Asia Division. "It presents an unparalleled opportunity to simultaneously build all PepsiCo brands in one of the world's most exciting frontier markets."
 "The Moscow Metro is the pride of Russia," said Evgueny Dubchenko, director of the Moscow Metropolitan. "This partnership with PepsiCo will allow us to be pioneers together in the new Russia and pioneers in providing Metro passengers with innovative and expanded quality services."
 The PepsiCo companies estimate that approximately four percent of the 500,000 to 600,000 Muscovites who pass through each metro station daily will purchase a soft drink and a food item. Jones noted that at that rate the company would increase its soft drinks sales in Russia by 25 percent. Pepsi-Cola is the leading soft drink company in the country and outsells its nearest foreign-branded competitor by a margin of 4 to 1.
 The Metro Express was established through a protocol agreement, which sets the foundation for a joint venture between PepsiCo and the Moscow Metropolitan. Terms of the deal were not disclosed.
 The new venture is PepsiCo's first major cart program outside the U.S. The carts and kiosks were designed and manufactured by Denver- based Carts of Colorado, Inc. Last year PepsiCo took a significant equity position in this leading maker and marketer of innovative mobile merchandising equipment. Following the pilot test, the units are slated to be produced in Russia under license by Carts of Colorado.
 The Moscow Metropolitan operates the Moscow Metro subway system. Originally designed to demonstrate the advantages of the Socialist society over capitalism and coined "The Front Window of Socialist System," the Moscow Metro was earlier this year declared a cultural, historic and architectural landmark by the city government. It is the world's most efficient underground transport system, transporting twice as many passengers annually as Mexico City's subway, the world's second largest metro system and triple that of New York City's. The Moscow Metro is the primary means of public transportation in Moscow. A one- way fare costs 6 rubles.
 PepsiCo, based in Purchase, N.Y., is one of the largest and most successful consumer products companies in the world. The company has achieved a leadership position in three large and growing markets -- soft drinks, snack foods and restaurants. Its sales in 1992 were $22 billion.
 Pepsi-Cola International, the company's international soft drink division, is the leading beverage manufacturer in Russia and throughout all republics of the former Soviet Union. Pizza Hut, one of PepsiCo's restaurant companies, entered Russia in 1990 through a joint venture with the Moscow City government. Today's launch of the Moscow Express marks the debut of Taco Bell in Russia. And it is expected that KFC and Frito-Lay products will be introduced later in the Metro Express pilot test.
 -0- 6/10/93
 /CONTACT: Richard M. Detwiler, Jr., director, public relations of PepsiCo, Inc., 914-253-2725; or Anna Nerbovig, in Moscow, 7095-941-8129, or 7501-927-1000, until June 11, or Vienna, 431-89-120-462, for the Moscow Metropolitan/
 (PEP)


CO: PepsiCo, Inc.; Moscow Metropolitan ST: IN: FOD SU: PDT

LR -- NY014 -- 0477 06/10/93 09:12 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 10, 1993
Words:769
Previous Article:MANHATTAN'S TALLEST HOTEL, THE FOUR SEASONS HOTEL NEW YORK MAKES ITS DEBUT
Next Article:HELENE CURTIS ANTICIPATES FLAT SALES AND LOWER EARNINGS IN FIRST QUARTER
Topics:


Related Articles
PEPSICO ANNOUNCES LARGEST-EVER DEAL FOR MANUFACTURED EXPORTS FROM UKRAINE
PEPSICO, INC. HIRES R&R GOVERNMENT SERVICES DIVISION; AGENCY TO REPRESENT PEPSI IN SEVEN WESTERN STATES
PEPSICO AND STAR WARS UNITE FOR LARGEST PROMOTIONAL ALLIANCE IN ENTERTAINMENT HISTORY
Spin Off Should Improve Pepsi's Credit Quality, Fitch Says
PepsiCo Statement on Management Changes at Pepsi Bottling Group.
BT Signs Multi-year Managed Services Agreement With PepsiCo.
Pepsi to buy Russian firm.
PepsiCo and Pepsi Bottling Group to Invest US$1 Billion In Russia 50 Years After Russians Had Their First Taste of Pepsi-Cola.

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