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PEPSICO FOODS INTERNATIONAL AND GENERAL MILLS EUROPEAN SNACK FOOD JOINT- VENTURE BEGINS OPERATIONS; COMPANY & PRESIDENT NAMED; HEADQUARTERS SITED

PEPSICO FOODS INTERNATIONAL AND GENERAL MILLS EUROPEAN SNACK FOOD JOINT- VENTURE BEGINS OPERATIONS; COMPANY & PRESIDENT NAMED; HEADQUARTERS SITED
 MAARSSEN, The Netherlands, Aug. 6 /PRNewswire/ -- Snack Ventures Europe (SVE), the new company formed by the merger of the Continental European snack food businesses of PepsiCo Foods International (PFI) and General Mills, Inc. (NYSE: GIS), will begin operations immediately as the largest snack food company in Continental Europe. The European Commission today approved the joint-venture which was announced on May 12.
 The new company combines PepsiCo's existing salty and sweet snack businesses in Spain, Portugal and Greece with General Mills' existing salty snack and sweet biscuit businesses in France, Belgium and The Netherlands. Combined annual net sales of the new enterprise exceed US$600 million and it employs 4,650 people. Headquarters for the new company will be located in Brussels, Belgium, with administrative offices located outside Amsterdam in Maarssen.
 Products marketed by Snack Ventures Europe will continue to be sold under their existing brand names including Smiths Crispy Chips/Super Chips, Ruffles, Tasty, Cheetos, Doritos and BN Sandwich Cookies.
 Heading Snack Ventures Europe as president and chief executive officer is Michael J. Dolan, formerly PFI's senior vice president- operations. A veteran of the food and beverage industry in the United States, Dolan joined PFI last year after serving as the president of Continental Beverage Packaging, responsible for the US$1.3 billion revenue Beverage Group and Food Group units of the Continental Can subsidiary of Peter Kiewitt Sons, Inc. Formerly, he was a partner with Booz, Allen & Hamilton.
 European Consumers To Benefit
 Commenting on the creation of the new company, Dolan states, "Snack Ventures Europe is exciting news for European consumers. By combining the existing products of our individual companies with their new product development and manufacturing technologies, we will be able to offer consumers a wide array of innovative, high quality snack foods that will energize the marketplace."
 Dolan explained that initially Snack Ventures Europe would introduce each country's most popular existing brands into the joint-ventures' other markets. At the same time, Snack Ventures Europe will also emphasize new product development by combining the strengths of PFI's salty and sweet snack production technology with General Mills' expertise in the cereal-based snack and sweet biscuit segments.
 Healthy Sales Growth, Investment Planned
 "When coupled with aggressive capital investment, the introduction of existing products into new countries and the development of totally new snack creations will fuel double-digit sales growth for the new company," Dolan predicts.
 Snack Ventures Europe is benefiting from the investment programs both PFI and General Mills had underway. PFI has already earmarked US$70 million for a new manufacturing plant at Carregado, Portugal, outside Lisbon that will begin production in 1993. General Mills will complete a US$55 million manufacturing facility at Raamsdonksveer in The Netherlands this year.
 The creation of the new company did not involve any cash. Each partner contributed to Snack Ventures Europe its respective businesses which comprise the joint-venture, with PFI receiving a 59.5 percent stake and General Mills a 40.5 percent stake in the new company. PFI assumes responsibility for day-to-day management, with both partners naming directors in proportion to their respective equity.
 The companies comprising Snack Ventures Europe are Biscuiterie Nantaise-BN, S.A. in France; Laprovar Sociedade de Productos Alimentarios, S.A. in Portugal; Productos PepsiCo, S.A. in Spain; Smiths Food Group, B.V. in The Netherlands; Smiths Food Group, S.A. in Belgium; and Tasty Foods, S.A. in Greece. Joint operations commence immediately and all legal formalities will be completed over the next several months.
 Europe's Premier Snack Food Company
 Dolan concludes, "The goal of Snack Ventures Europe is to be the premier European snack food company. We intend to achieve this through a steadfast commitment to the superior quality of our products, to constant innovation and to consistent service for our customers. In this process we will open many new opportunities for growth and development to current and future employees."
 PepsiCo Foods International, headquartered in Dallas, is the world's largest snack food company with annual retail sales of more than US$4 billion. Including Snack Ventures Europe, PFI operates 30 businesses in 27 countries. It employs 50,500 people, has a network of 14,000 sales routes and operates over 70 plants around the world. It is a member of the PepsiCo, Inc. (NYSE: PEP) family of consumer products businesses which has annual sales of approximately US$20 billion.
 General Mills, headquartered in Minneapolis, generated $5.2 billion of its $7.8 billion in worldwide sales last year from its food businesses, operating primarily in North America. It holds leading positions in ready-to-eat cereals, dessert and baking mixes, flour, yogurt, seafood and various snack foods. The company's Red Lobster Seafood and The Olive Garden Italian restaurant chains account for nearly one-third of General Mills sales.
 -0- 8/6/92
 /CONTACT: Paul Go of Hill and Knowlton, in Amsterdam: 31-20-697-2021, for Snack Ventures Europe; or T.A. Fassburg of PepsiCo Foods International, 214-956-3678; or R.C. Shulstad of General Mills, 612-540-3745; or Ken Ross of PepsiCo, 914-253-2725/
 (PEP GIS) CO: PepsiCo Foods International; General Mills, Inc. ST: New York, Minnesota IN: FOD SU: JVN


TS -- NY028 -- 7464 08/06/92 09:42 EDT
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Date:Aug 6, 1992
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