• Ad Age, Wednesday, August 5, 2009 11 AM

PepsiCo finally came to terms with its two largest North American bottlers yesterday to the tune of $7.8 billion, Natalie Zmuda reports. The deal will help Pepsi get its products to market faster, allow it to nurture niche brands, and to bundle offers with the food division, she writes.

PepsiCO chairman and CEO Indra Nooyi, who has been championing the deal, says that it will allow for more diversification into the health and wellness area. Non-carbonated drinks now account for 55% of the company's portfolio of "liquid-refreshment beverages."

"It allows them to be more nimble and move their products into the system and ultimately into consumers' hands quicker," says Gary Hemphill, managing director-COO at Beverage Marketing Corp. "It allows them to rethink how they go to market."

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