Peter Thompson, president and chief executive officer of Pepsi International Group, reaffirmed his company's confidence in the Chinese market Monday, saying that he hopes Pepsi will stop making losses in China in three years.
He made the remark at a ceremony marking the 20th anniversary of Pepsi's presence in China and the inauguration of a new packing plant in Shenzhen, Guangdong Province, in south China.
Pepsi to expand business in China
The new plant reflected Pepsi's confidence in Chinese market and its determination to expand its business in China, he said.
Since it started its first plant in Shenzhen in 1982, Pepsi has set up nearly 30 businesses in China, with a total investment of US$500 million and around 10,000 employees.
Pepsi confident of Chinese market despite losses
Though Pepsi's investment in China has failed to produce a profit so far because of huge spendings on marketing, Thompson said he believed in the potential of the Chinese market and the possibility of a profit for Pepsi in the near future.
Zhu Huaxu, president of Pepsi Co. Investment (China) Ltd., explained that Pepsi's 14 packing plants in China had all made profits, but its business in China as a whole is in red if marketing and other costs were taken into account.
As the soda drink market in China still has a large space for growth, Thompson said Pepsi would seek to consolidate and expand its share while looking for opportunities to enter other beverage markets.
(Xinhua News Agency April 09, 2002)
