BRAZIL: PepsiCo In $1.9bn Bid For Vigor Dairy?

PepsiCo has reportedly made an offer to acquire local dairy group Fábrica de Produtos Alimentícios Vigor (Vigor).

According to the Valor Econômico daily, PepsiCo had offered 6bn reals ($1.9bn) for the group, which produces yogurts, yogurt drinks, spreads and cream cheese. Vigor operates seven manufacturing facilities in Brazil, and acquiring the group would be a major fillip to PepsiCo’s operations in the region.

The paper said the US giant was in talks with J&F Investimentos, Vigor’s parents, although neither side has commented on the report. It added that this was PepsiCo’s second bid for Vigor, adding that J&F remains “interested in selling the operation” and has also held talks with other buyers.

NAM Implications:
  • Apart from benefits locally, the issue for other suppliers is how PepsiCo might apply its learnings in other countries/continents.