Pepsi Americas invests 10m dollars in Covasna plant

Pepsi's Romanian bottler is planning investments worth 10 million dollars in the plant in Covasna, which will go into a new production line for soft drinks, according to data from Pepsi Americas. The investment will boost production capacity for all categories of drinks bottled on the Romanian market by the American company. The producer has also announced that the construction of a new facility on the outskirts of Bucharest is progressing in line with initial plans, which provide for an overall investment worth 100-120 million euros. The company slowed down its sales growth rate in the third quarter, reporting a 12% rise on the carbonated drinks market and a 6% rise on the non-carbonated segment, in terms of volume. In the first half of the year, the growth rates in terms of volume amounted to 16% and 8% respectively, according to Pepsi Americas financial reports. Mike Holmes, president of Pepsi Americas Romania, blames this slowdown on the first signs of consumption decline, which arose on the Romanian soft drinks market in the third quarter, but say the market remains attractive in the medium and long term. "The investments we are conducting in Romania are medium and long term projects, and we remain optimistic about the growth of the local soft drinks market and about opportunities to develop our brands," said Holmes.