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RUSSIA USHERS IN NEW GENERATION OF CONVENIENCE SOFT DRINK PACKAGING AS PEPSI LAUNCHES FIRST 2-LITER BOTTLE

 Pepsi predicts new plastic package will spur 400 percent jump
 in Russian soft drink industry by turn of century
 MOSCOW, Nov. 19 ~PRNewswire~ -- Pepsi-Cola International today launched a new 2-liter plastic soft drink bottle that will help fuel a 400 percent increase, to five billion liters, in the Russian soft drink market by the year 2000. With today's launch, Pepsi-Cola becomes the only soft drink company to offer Russian consumers plastic convenience (non-returnable) packages produced in the former Soviet Union.
 The prediction was one of seven surrounding the new package and the future outlook of the Russian soft drink industry the company made today on the occasion of the launch. These predictions were sealed in a time capsule which will be opened at the turn of the century in Moscow.
 "Today marks a turning point for the entire beverage industry in Russia," said F. David Jones, president of Pepsi-Cola International's Middle East~Africa~Eastern Europe Division. "Pepsi's 2-liter package sets yet another new standard for innovations in soft drink packages that are larger, more convenient and, more importantly, affordable to the vast majority of Russian consumers."
 Large, light-weight plastic PET (polyethylene terephthalate) bottles are now the fastest-growing segment of the Russian soft drink industry. Until today, the only plastic soft drink packages available in the market were fully-finished imports which commanded premium prices. The average retail price of Pepsi's new 2-liter package is 250 rubles, compared with the competition's imported 1.5 liter priced at an average of 405 rubles.
 "This new package will help meet the huge consumer demand for Pepsi products in family size packages, while simultaneously driving Pepsi's leadership position in Russia and throughout the former Soviet Union," said Jones. With recent manufacturing investments to produce the new 2-liter PET bottle and the signing of an exclusive contract with Pepsi's franchise bottler Ochakovo (Organization of Lease Holders of the Moscow Beer and Soft Drinks Plant) in Moscow, total production capacity of Pepsi products in Russia has increased by 25 percent, to over 600 million servings each year.
 The new 2-liter PET bottle is a recyclable, clear, high-performance plastic package produced as a pre-form by BELPAK, a new U.S.-Belarussian joint venture. The joint venture was established only six months ago in Mogilev, Belasus, between partners PCI, Eastman Chemical and two Belarussian companies --Khlmvolokno and MPOST. After being transported to the Ochakovo plant in Moscow, the pre-forms are blow-molded into the 2-liter package and then filled and distributed into the market. Ochakovo is the only manufacturing facility in the former Soviet Union which has this technology.
 The launch will be supported by an extensive marketing campaign, featuring Pepsi's first locally-produced television and radio advertising for Russia. The radio advertising is Russia's first commercial set to rap music and lyrics. More than 230 outdoor advertising boards, over 270 specially-designed PET racks and thousands of in-store sales displays have already begun appearing throughout the greater Moscow area.
 Looking ahead at the Russian soft drink market, Pepsi-Cola International also predicted that by the year 2000:
 -- Over 1 billion bottles of locally-produced PET (polyethylene terephthalate) plastic bottles will be sold in Russia. The new packaging will increase from today's 1 percent to 40 percent of the total market.
 -- Russian consumers will each drink at least four times more carbonated soft drinks than today, or 35 liters per person each year.
 -- Cola soft drinks, which today represent 15 percent of the total Russian market, will grow to 30 percent.
 -- The retail value of PET-packaged carbonated soft drinks will total over US$1 billion.
 -- Privatized retail stores will offer a full-line of western soft drink brands, which will be readily available and affordable to all Russian consumers.
 -- Innovation in mass marketing, on-premise channels and direct distribution to retailers will characterize the primary means by which carbonated soft drinks will be sold in Russia.
 "Not only will we see explosive growth in the Russian soft drink market, we predict that by the year 2000 Pepsi will continue to be Russia's best-selling soft drink," said Jones in unveiling the Pepsi Time Capsule. "The introduction of this new 2-liter bottle, the only convenience package produced in the former Soviet Union, is the first of many steps in Pepsi's long term strategy to do just that."
 Pepsi-Cola International, based in Somers, New York, markets some of the world's largest soft drink brands in over 165 countries and territories. It is PepsiCo's fastest growing division, with 1991 sales of U.S.$1.5 billion, and is the volume leader in some 55 markets worldwide, including Russia and throughout the former Soviet Union.
 -0- 11~19~92
 ~CONTACT: Ken Ross, 914-767-6894, or Anna Nerbovig, 431-89-120 (Vienna), or 7095-941-8020 (Moscow), both for Pepsi-Cola~
 (PEP)


CO: Pepsi-Cola International ST: New York IN: FOD SU:

SH -- NY019 -- 2725 11~19~92 09:31 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Nov 19, 1992
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