Heineken & Pepsi focus on Eastern Europe

Heineken and PepsiCo have both committed to further expansion within the high growth markets of Central and Eastern Europe. Heineken has acquired Czech Republic-based brewer Drinks Union, while PepsiCo has purchased a majority stake in Russian juice group Lebedyansky.

Through its purchase, Heineken will control all four breweries currently operated by Drinks Union, which are situated in both North and East Bohemia.  Drinks Union brands, including Zlatopramen, Breznak, Louny and Dacicky will be added to the group's own portfolio in the country, which includes the Starobrno, Hostan, Zlaty Bazant and Krusovice labels.

PepsiCo vice chairman Michael White said Russia was proving to be one of the fastest growing markets for fruit juice products offering strong potential for future growth. The €898 million acquisition of the group's juice operations, which excludes its mineral water and infant nutrition operations.

White commented: "Combining Lebedyansky's strengths with those of PepsiCo, one of the world's largest makers and sellers of branded juice, and The Pepsi Bottling Group (PBG), our largest bottler, will create vast opportunities.  We are committed to investing in Lebedyansky's brands and building an even brighter future for this company." Under the terms of the purchase, PepsiCo will control 75% of the acquired venture, with PBG claiming the remaining 25%.