PepsiCo, Unilever expand ready-to-drink tea products joint venture; includes Korea, Taiwan

PepsiCo and Unilever said they are expanding their Lipton ready-to-drink tea products joint venture to add on 11 more countries, including Taiwan and Korea.

Under the deal terms each company will continue to own 50 percent of the joint venture, with New York-based PepsiCo paying UK-based Unilever an undisclosed sum for its share of the businesses in the new markets.

Besides the two countries in Asia, the new agreement adds 9 others - eight in Europe, including Germany, Italy, France, Netherlands, Switzerland, Austria, Belgium and Portugal, as well as South Africa - to the partnership's existing Lipton ready-to-drink tea business.

The business in these 11 countries had combined systems sales to the trade of around US$422 million in 2006, according to a statement from PepsiCo.

PepsiCo said the new agreement will more than double the volume of the companies' current joint venture.