PEPSICO TAKES EQUITY STAKE IN NATION'S NO. 1 PROPONENT
OF MOBILE MERCHANDISING, CARTS OF COLORADO
DENVER, Feb. 20 /PRNewswire/ -- PepsiCo, Inc. (NYSE: PEP) has taken a significant equity position in Carts of Colorado, Inc. the leading manufacturer and marketer of innovative mobile merchandising equipment, the companies jointly announced Thursday.
Terms of the deal were not disclosed.
Carts of Colorado products -- described by some as "restaurants on wheels" -- include state-of-the-art carts, kiosks and modular kitchen equipment, primarily for use within the food and beverage markets. Most of the mobile units produced by the company are completely self- contained. The next generation of carts, called SMARTCART, integrate computer and radio technology to link individual carts to central commissary hubs for monitoring of traffic and inventory levels.
"When an industry leader like PepsiCo embraces a concept like mobile merchandising, it dramatically underscores the potential of this market," said Stanley A. Gallery, president and co-founder of Carts of Colorado. "In the businesses we serve, location is one of the keys to driving sales volume. Our carts and kiosks are able to effectively leverage some powerful trademarks in locations they haven't been able to easily reach."
"PepsiCo's partnership with Carts of Colorado increases our ability to aggressively pursue new and non-traditional distribution channels for our products," said Kenneth T. Stevens, PepsiCo's senior vice president of strategic planning. "It also gives us, and our customers, a competitive edge through access to some very unique technology and marketing ideas."
Both Stevens and Robert C. Hunter, president of PepsiCo Food Systems, will join the Carts of Colorado board of directors, it was announced today. PepsiCo is already among Carts of Colorado's biggest customers, primarily through its Taco Bell, Pizza Hut, KFC and Pepsi- Cola divisions. Among the applications Carts of Colorado has supplied PepsiCo companies are mobile merchandisers for Taco Bell in the Las Vegas and Detroit airports, Pizza Hut at Georgetown University, KFC at the General Motors Truck and Bus Assembly plant in Dayton, OH and Pepsi- Cola in Sam's Wholesale Club's. Other significant customers who have embraced the Carts of Colorado concepts of mobile merchandising include Marriott Corporation, ARA Services, Service America, Disneyland, Disney World, Euro Disney and Mrs. Fields.
Carts of Colorado estimates that products sold from Carts of other mobile merchandisers now generate sales of more than $2 billion annually, adding that individual units produced by the company have had annual sales as high as $1.2 million. Carts of Colorado has designed, produced and sold nearly 20,000 carts and kiosks.
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 -- and its sales in 1992 were a record $19.6 billion.
The Gallery family -- brothers Stanley and Daniel and a sister, Deborah -- started its business in the early 1980's by selling hot dogs from custom designed pushcarts on the streets of Denver. The Gallery's cart operations were so successful and attention-getting that by 1984 the family decided to focus its full efforts on designing, manufacturing and marketing the unique mobile merchandising units for which they are now known around the world. Carts of Colorado, Inc. employs about 110 people.
/CONTACT: Robert L. Keyser III of Carts of Colorado, 303-674-5003, or Kenneth Ross of PepsiCo, 914-253-2725/
(PEP) CO: PepsiCo, Inc.; Carts of Colorado Inc. ST: New York, Colorado IN: FOD SU: TNM SM -- NY032 -- 0913 02/20/92 12:15 EST