PepsiCo and Pepsi Bottling Group to Invest $1 Billion In Russia 50 Years After Russians...

PepsiCo and Pepsi Bottling Group to Invest $1 Billion In Russia 50 Years After
Russians Had Their First Taste of Pepsi-Cola

Investments support new beverage, juice and snack infrastructure, including
Domodedovo plant being inaugurated this week

MOSCOW, July 6 /PRNewswire-FirstCall/ -- PepsiCo, one of the world's largest
food and beverage companies, announced today that it plans to invest US$1
billion in Russia over three years, together with its partner The Pepsi
Bottling Group (PBG).

The investment will bring the cumulative investment in Russia by PepsiCo and
PBG to over $4 billion and is consistent with PepsiCo's ongoing strategy to
expand in emerging markets.

"I am delighted to announce that over three years we expect to invest $1
billion in our beverage and food businesses in Russia," said PepsiCo Chairman
and Chief Executive Officer Indra Nooyi. "This investment reflects very
clearly our great confidence in Russia and our long-term commitment to this
very important market."

Nooyi is in Russia this week to open a new bottling plant outside Moscow, to
join a meeting of business leaders convened by Presidents Medvedev and Obama
and to mark 50 years since Pepsi-Cola was introduced in Moscow at the 1959
American National Exhibition.

The investment in Russia is funding various programs to expand manufacturing
and distribution capacity. In addition to the new beverage facility opening
this week in Domodedovo, a new snacks manufacturing plant is expected to open
later this year in the southern city of Azov. PepsiCo and PBG also are
planning significant investments to build a state-of-the-art warehousing and
distribution infrastructure for the Lebedyansky juice business. And PepsiCo,
the largest private user of potatoes grown in Russia, plans to continue its
substantial investment in local agriculture, applying the latest technology to
ensure the highest productivity and quality standards.

These investments continue a major expansion effort by PepsiCo and PBG that
began in the late 1990s, with the opening of the companies' first beverage
plant of the modern Russian era, followed by the opening of PepsiCo's first
snack manufacturing facility in Kashira in 2002. In 2008, PepsiCo and PBG
invested approximately $2 billion to acquire Lebedyansky, Russia's leading
branded juice company.

"Russia is a very attractive growth market," said PBG Chairman and Chief
Executive Officer Eric Foss. "The investments we're making in our Russia
business are creating new jobs, providing us with the flexibility to produce a
wider range of beverage offerings for consumers, and enabling us to better
serve our valued retail partners. Our new plant in Domodedovo reflects our
serious commitment to future expansion in Russia. We're looking forward to
playing an active role in the country's business community for many years to
come."

When operating at full capacity, the Domodedovo plant will be larger than any
bottling plant currently in PepsiCo's global system. It will produce a range
of beverage brands, including Pepsi-Cola, Aqua Minerale water and
ready-to-drink Lipton Iced Teas (through PepsiCo's joint venture with
Unilever) for sale by retailers across Russia as well as neighboring CIS
countries.

The plant incorporates a number of water-saving and energy-saving features
designed to reduce its environmental impact. It employs a state-of-the-art
water filtration system that uses ozone molecules for purification. It is
also the first PBG plant in Russia equipped to produce ultra-light PET plastic
bottles on all bottling lines, with labeling technology that uses no glue,
less plastic and less energy than traditional labels. In addition, the plant
is designed to utilize energy-efficient lighting systems.

Promoting environmental sustainability is a key part of PepsiCo's "Performance
with Purpose" commitment to achieve business and financial success while
leaving a positive imprint on society. Consistent with this commitment,
PepsiCo said it will also continue to actively support Russian communities
through its wide-ranging agricultural program, with initiatives to educate
local farmers and help them improve crop yields. Specific activities include
grants to academic institutions to support agricultural innovation, and
advanced training seminars to promote development-oriented farming among local
growers who supply potatoes for Frito-Lay snacks.

50 Years of Pepsi in Russia

Pepsi's history in Russia began in 1959 when former PepsiCo Chairman and Chief
Executive Officer Donald M. Kendall, then Pepsi-Cola International President,
personally introduced Soviet Chairman Nikita Khrushchev to Pepsi-Cola at the
historic American National Exhibition in Moscow. At that event, visitors
sampled some three million cups of Pepsi. Many years later, Kendall reached a
landmark barter agreement with the Soviet government, under which his company
provided soft drink concentrate in exchange for Stolichnaya vodka. As a
result, in 1974 Pepsi-Cola became the first Western consumer product to be
made and sold in the Soviet Union with the opening of the initial franchise
bottling plant in Novorossisk. Over the years Kendall has remained very
active in promoting commercial relations between Russia and the U.S., and in
2004 then-President Vladimir Putin honored him with the Russian Federation's
Order of Friendship at a Kremlin ceremony.

"We are particularly proud that we are marking 50 years since the introduction
of Pepsi-Cola to Russian consumers," Nooyi said. "Today we are optimistic
about the future of Russia, and we look forward to continuing to build our
businesses here."

Today PepsiCo and PBG comprise one of the largest food and beverage providers
in Russia, and are the leading producers of juices and nectars, ready-to-drink
teas, bottled water and savory snacks across the country. In addition to
popular carbonated soft drinks Pepsi, Mountain Dew and 7UP, PepsiCo and PBG
together offer a broad portfolio of locally relevant brands that Russians know
and love, including Ya, Tonus, Fruktovy Sad and Frustyle juices and nectars
from Lebedyansky, and a variety of Frito-Lay snacks, such as Lay's Potato
Chips made with potatoes from local farmers, and Hrusteam crispbreads.

Additional information about PepsiCo in Russia is available at
www.pepsico.com/russia.

VIDEO B-ROLL, PHOTOS AVAILABLE

Broadcast-quality video b-roll, including historic material from 1959 and
excerpts from a recent interview with Donald Kendall, is available to media
for free download at http://www.thenewsmarket.com/pepsico.

For free registration, log on to: http://www.thenewsmarket.com.

About PBG

The Pepsi Bottling Group, Inc. (NYSE: PBG) is the world's largest
manufacturer, seller and distributor of Pepsi-Cola beverages. With
approximately 67,000 employees and annual sales of nearly $14 billion, PBG has
operations in the U.S., Canada, Greece, Mexico, Russia, Spain and Turkey. PBG
accounts for approximately 60 percent of the Pepsi-Cola beverages sold in
North America, and approximately 40 percent of the Pepsi-Cola system volume
worldwide. In Russia, PBG distributes Frito-Lay snacks in addition to its
portfolio of leading beverage brands. PBG employs nearly 5,000 people in
Russia. For more information, please visit www.pbg.com.

About PepsiCo

PepsiCo is one of the world's largest food and beverage companies, with 2008
annual revenues of more than $43 billion. The company employs approximately
198,000 people worldwide, and its products are sold in approximately 200
countries. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola
beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The
PepsiCo portfolio includes 18 brands that generate $1 billion or more each in
annual retail sales. PepsiCo's commitment to sustainable growth, defined as
Performance with Purpose, is focused on generating healthy financial returns
while giving back to communities the company serves. This includes meeting
consumer needs for a spectrum of convenient foods and beverages, reducing the
company's impact on the environment through water, energy and packaging
initiatives, and supporting its employees through a diverse and inclusive
culture that recruits and retains world-class talent. PepsiCo is listed on
the Dow Jones Sustainability North America Index and the Dow Jones
Sustainability World Index. For more information, please visit
www.pepsico.com.

Cautionary Statement

Statements in this release that are "forward-looking statements" are based on
currently available information, operating plans and projections about future
events and trends. They inherently involve risks and uncertainties that could
cause actual results to differ materially from those predicted in such
forward-looking statements. For additional information on these and other
factors that could cause PepsiCo's or PBG's actual results to materially
differ from those set forth herein, please see PepsiCo's and PBG's respective
filings with the United States Securities and Exchange Commission, including
their most recent annual reports on Form 10-K and subsequent reports on Forms
10-Q and 8-K. Neither PepsiCo nor PBG undertakes any obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise.

SOURCE PepsiCo

PepsiCo New York: Dave DeCecco, +1 914-253-2655, david.dececco@pepsi.com,
PepsiCo Moscow (English): Huw Gilbert, +1-914-886-8763,
huw.gilbert@pepsico.com, (Russian): Alexander Kostikov, +7 495-937-0575,
alexander.kostikov@intl.pepsico.com, PBG: Jeff Dahncke, +1-914-767-7690,
jeff.dahncke@pepsi.com