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PepsiCo and Burger King® Form China Beverage Partnership

Wednesday, January 09, 2013

• PepsiCo and its franchise bottler in China – Tingyi-Asahi Beverages’ subsidiary, Pepsi Beverage Business -- become strategic beverage suppliers for Burger King® stores in mainland China
• Burger King® began selling Pepsi-Cola, 7UP, Mirinda, Lipton, Tropicana and other PepsiCo beverages in China this month
• Burger King® entered China in 2005 and operates nearly 100 stores in the country
• Pepsi Beverage Business will provide Burger King® with  some of the country’s most popular beverages and improved in-store service for its Chinese consumers

SHANGHAI, January 9, 2013 —— PepsiCo beverage brands are coming to Burger King restaurants across China.

Burger King (BK) and PepsiCo – together with Pepsi Beverage Business (PBB), PepsiCo’s franchise bottler in China and a subsidiary of Tingyi-Asahi Beverages Holding Co Ltd (TAB) – today announced a partnership that makes PBB the strategic beverage supplier for all BK stores in mainland China.  The partnership is designed to create new growth opportunities for all three companies in China, which is projected to become the world’s largest food and beverage market by 2015.

The partnership spans several beverage brands from PepsiCo’s portfolio, including China’s top-selling cola, Pepsi-Cola; 7UP; Mirinda; Lipton; and Tropicana. Burger King’s China stores began selling PepsiCo beverages earlier this month.

PepsiCo and BK have a successful business relationship in other markets around the world, including in the United States, Latin America, Russia, and Turkey. This marks the first time the two companies are partnering in China.

Senior executives of the companies, including Paul-Lacy Smith, Vice President, Development, Supply Chain Management and Brand Standards of BK Asia Pacific; Saad Abdul-Latif, CEO of PepsiCo Asia, Middle East and Africa; and Wah-Hui Chu, Chairman of Pepsi Beverages, attended a signing ceremony Wednesday in Shanghai.

The companies are planning to ramp up their partnership with a joint promotion during the Chinese New Year leveraging PepsiCo’s immensely popular marketing campaign, "Bring Happiness Home." The promotion will include various in-store activations involving BK foods and PepsiCo beverages.

"As one of the best global chains of fast-food brands, BK is deeply honored to move into a strategic partnership with PepsiCo and PBB in China. For dozens of years, PepsiCo and TAB have been committed to taking root in China and paying back to society. Through such cooperation, we hope to further improve the long-term prospects of our business in the Chinese market," said Mr. Li Xiao, President of BK (Shanghai) Foods Company. "We will continue to provide Chinese consumers with more and better choices of BK products and endeavor to meet their demands for variety, quality and safety-guaranteed food products, including our wholesome and tasty flame-broiled hamburgers that are loved by millions of BK fans around the world."

Wah-Hui Chu, Chairman of Pepsi Beverages, said, "There's huge potential to be tapped in China's food and beverage market. We’re excited that Pepsi and BK are now joining hands and drawing on each other's strengths in pursuit of win-win cooperation. The fans of BK will now also get the opportunity to experience a variety of popular PepsiCo beverage products, including Pepsi-Cola, the leading cola brand in China. We look forward to deepening our cooperation with BK stores and providing a wide range of beverage choices and memorable experiences for consumers in China."

BK entered China in 2005 and now operates nearly 100 stores in the market, with plans to increase the number of its stores in more regions and cities over the next five years.

About Burger King®

Founded in Miami, Florida in 1954, BURGER KING® (BK) is the second largest fast food hamburger chain in the world. The original HOME OF THE WHOPPER®, the BK system operates in over 12,600 locations serving over 11 million guests daily in 83 countries and territories worldwide. The BURGER KING® is rated one of the 100 “Global Premium Brand” by world’s largest brand consulting firm Interbrand, and one of the top three advertisements leading the ad industry in the past three decades by AD Weekly, a prominent US trade magazine. 

In June 2005, BK opened its first store in Jingansi, Shanghai. As of Nov, 2012, BK has nearly 100 stores in China, in cities like Shanghai, Beijing, Tianjin, Guangzhou, Shenzhen, Nanjing, Suzhou, Hangzhou, Wuxi, Ningbo, Shaoxing, Xiamen, Xi’an, Yan’an, Foshan, Zhongshan and Jinjiang. For more information, please visit www.bkchina.cn.

About Tingyi-Asahi Beverages Holding Co. Ltd

Tingyi-Asahi Beverages Holding Co. Ltd (TAB) is China’s leading beverage company that specializes in the production and distribution of Master Kong brand ready to drink tea beverages, diluted juices and bottled water,  ranking No. 1 in volume and market share in China’s beverage industry. In April, 2012, TAB established strategic alliance with PepsiCo, and TAB’s subsidiary, Pepsi Beverage Business, is authorized to manufacture and sell PepsiCo’s beverage products in China. TAB has become the leading manufacturing system in China’s beverage market, with more than 70 plants and a national distribution network, providing great quality products, good services and more choices for Chinese consumers across the country.

TAB is subsidiary of Tingyi Holding Corp. For 5 consecutive years, Tingyi Holding Corp. is named one of the 50 best listed companies in Asia by Forbes for its outstanding management, entrepreneurial skills and solid financial track record. The company is one of the constituents of Hong Kong Hang Seng Indexes (HSCI).  For more information, please visit www.masterkong.com.cn.

About PepsiCo

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo's people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo's promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate. For more information, please visit www.pepsico.com.

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