• September 17, 2007

PepsiCo and Unilever are expanding an international partnership initiated in 1991, for the marketing and distribution of Lipton-brand ready-to-drink tea.

The two companies are expanding the partnership to include eight European countries, plus Korea, Taiwan and South Africa.

The new agreement builds on the original 1991 partnership, a North American joint venture, and on the subsequent 2003 Pepsi Lipton International joint venture that comprises more than 40 countries.

The companies say the new pact will more than double the volume of the companies' current international joint venture and positions both companies to capture the rapidly expanding global ready-to- drink tea market.

As part of the new agreement, each company owns half of the JV, with PepsiCo paying Unilever an undisclosed sum for its share of the businesses in the new markets being transferred.

--Karl Greenberg