Pepsi looks to streamline with $6B bottling deal
As stocks opened Monday, Pepsi made an offer to buy up two of its biggest bottling companies for $6 billion.
Pepsi wants to buy Somers-based Pepsi Bottling Group as well as PepsiAmericas, in Minnesota, in order to streamline the way it delivers beverages and to cut costs. The company already has a stake in each of the companies, but is seeking to take full ownership over both.
The announcement came as the company reported a 1 percent decline in its first-quarter profit due to a decline in sales. Pepsi officials admit consumers are moving away from carbonated beverages and toward juices and water. Because of that, the company says it wants to have greater flexibility to meet changing demand.
No time frame has been given for closing the deal, which still has to be approved by both of the bottling companies.