Pepsi To Boost Investment In China (PEP)

PepsiCo Inc. PEP is planning to invest $2.5 billion in China over the next three years. The new investment will be in addition to a $1 billion investment announced earlier in 2008. Pepsi’s (PEP) chief executive officer Indra Nooyi said, “This investment reflects very clearly our great confidence in China and our long-term commitment to this very important, growing market.” Pepsi currently operates 27 beverage and food plants and five farms throughout China. It is planning to open 10 to 12 new plants. Reuters has reported that the new investment will be allocated to a variety of projects, including a significant scaling up of the company’s research and development operations and brand-building initiatives.