Pepsico to produce in Greece 60% of soft drinks locally consumed
Some 60% of PepsiCo’s soft drinks for the domestic market will be produced in Greece from the end of the year, after the company decided to return even more of its production after 2016, when it decided to close the soft drink factory at Oinofyta, north of Athens.
From December, the production of Pepsico soft drinks in PET packaging will begin at the NuAqua factory in Loutraki – this is the historic water bottling plant that PepsiCo Hellas sold to NuAqua in 2021 – while in the next phase the production of soft drinks will also begin in a glass bottle.
The first step toward the return of the production of PepsiCo’s soft drinks in Greece was made last year, when EPSA took over the production of canned soft drinks of the multinational, except for Pepsi Cola and 7UP.
“The market conditions when we made the decision to close the factory at Oinofyta and move production to Romania were very different. The transportation cost was low. We revised our decision because the war happened in Ukraine, there are the events in the Middle East, the cost of transportation is very high,” explained Inga Dengel, CEO of PepsiCo Hellas, during a press conference.
The agreement with NuAqua is for three years, but it is very likely that it will be renewed for another three. As for the agreement with EPSA, which is also for three years, it is also likely to be renewed, especially if the Volos-based industry’s plans to boost its market shares do not work out.
Although a few months ago the executives of the SMERC fund, to which EPSA now belongs, hinted that the agreement with PepsiCo would not be renewed, as all the production capacity of the factory needs to be utilized for the production of EPSA products, this scenario seems to be fading recently. The reason is that market shares do not seem to match the plans, so the continuation of the deal with the multinational would compensate for possible losses in revenue.
In fact, according to information, it is not excluded that in the next phase EPSA will take over the production of Pepsi Cola and 7Up in cans on behalf of PepsiCo.
Cooperation with other bottlers in the medium or long term cannot be ruled out, while in terms of acquisitions only those related to the snack industry are considered, where the company, through Tasty products, occupies a leading position in the Greek market.
“Our goal is to double our activity,” said Dengel, a rather difficult goal as especially in the hotels, cafeterias and restaurants channel the presence of the company’s soft drinks is extremely limited, with a share of around 5%.
The strategy implemented lately includes the close approach of the entrepreneurs in food service, especially those who exert more influence on their colleagues.
In 2023, the turnover of PepsiCo Hellas amounted to approximately 234 million euros, strengthened by 18% compared to 2022, while the company returned to profits.
