PepsiCo Investing In Argentina As It Continues To Build Global Snack Business

PepsiCo has announced the acquisition of Argentine biscuit and cracker producer Dilexis for an undisclosed price. Dilexis is reported to have revenue of approximately US$100mn, with export activities to the rest of Latin America as well as Africa. The move represents a significant expansion of PepsiCo's activities in the local snack food market. We have previously suggested that PepsiCo's international growth is likely to benefit from an increasing focus on the snack food part of the business and this acquisition fits with this view. However, we view Argentina as a fairly risky consumer market given the inherent imbalances in the

To read the full article, please choose one of the following options: