• June 24, 2009

PepsiCo has formed a strategic alliance with leading Japanese snack foods manufacturer and distributor Calbee Foods Co. to jointly produce and sell a wide range of products in Japan.

The expanded company's portfolio of product offerings will include Calbee potato chips, Kappa Ebisen prawn crackers, Jagarico and Jagabee premium potato snacks, Doritos tortilla chips, Cheetos corn snacks and Mike popcorn. The company also will offer vegetable snacks and breakfast cereals.

Under the agreement, which is subject to approval by the Japanese government, PepsiCo will contribute its Frito-Lay Japan business, plus an undisclosed amount of cash, to Calbee. Calbee will issue new stock to PepsiCo, which will have a 20% share of ownership in the new company and a seat on Calbee's board of directors.

Together, the Frito-Lay Japan and Calbee businesses currently generate annual revenues of approximately $1.4 billion. --Karlene Lukovitz