MANILA (UPDATE) - Listed beverage and snacks maker Pepsi Cola Products Philippines Inc. (PCPPI) eyes hitting about $1 billion in retail sales revenues this year, as it makes its first foray into snacks manufacturing in the country.
PCPPI will manufacture the popular Cheetos and Lay's snacks in the Philippines, only its second in Asia after Bangladesh at its just inaugurated P500-million Cabuyao, Laguna facility.
This reflects PepsiCo's ongoing drive to ensure the integration of its food and beverage portfolio across multiple platforms, including manufacturing and go-to-market execution.
Sanjeev Chadha, Pepsi's chief executive officer for Asia, Middle East and North Africa, said the seamless production of beverages and food will help PepsiCo grow in the increasingly important snacks market by three times in 10 years.
"We are delighted with this opportunity to produce internationally-renowned snacks products for the Philippine market, as we move towards our vision of becoming a premier food and beverage company in the Philippines," said Furqan Ahmed Syed, president of PCPPI.
The local snacks market is increasingly competitive, with Universal Robina Corp., maker of Jack n Jill; Liwayway Marketing Corp. of Oishi snacks; and Leslie Corp., maker of Clover.
In May last year, PCPPI announced it would make and distribute a range of PepsiCo's popular snack products and flavors to the Philippines' 100 million consumers.
"We're pleased to share the exciting variants of Cheetos at affordable price points and within reach of the snack-loving Filipino consumers," Jika Dalupan, PCPPI vice president for corporate affairs and communications added.
For January-September 2015, Pepsi said profit rose driven by strong demand for its beverages. These include the flagship Pepsi-Cola as well as 7Up, Gatorade and Tropicana.
Net income during the nine-month period hit P706.35 million, up 14 percent while revenues during the period also rose 7.8 percent to P23.68 billion.
Income for the third quarter alone stood at P146 million, up 5.1 percent.