JOINT VENTURE BETWEEN

UNILEVER AND PEPSICO

BY
M.V.SAIMAHESH
V.NAGENDRA REDDY
Unilever Overview
Multinational Consumer Goods Company started in year 1929 by
Antonius Johannes Jurgens,William Lever, 1st Viscount Lever Hulme,
James Darcy Lever, Samuel van den Bergh, Georg Schicht
company co-headquartered in London, England andRotterdam, The
Netherlands.
Its products include food, beverages,cleaning agentsandpersonal care
products.
Worlds third largest Consumer goods measured by 2012 revenue
30+ percent global market share
Products sold in more than 190 countries
More than 400 brands which includes 14 brands sales over one billion
euros.
 Axe/Lynx, Dove, Omo, Becel/Flora, Heartbrandicecreams, Hellmann's,

Knorr, Lipton, Lux,Magnum,Rama,Rexona,SunsilkandSurf.

Unilever is organised into four main divisions - Foods, Refreshment

(beverages and ice cream), Home Care, and Personal Care.

 PEPSICO OVERVIEW
PepsiCo was formed in 1965 with the merger of thePepsi-ColaCompany
andFrito-Lay
PepsiCo is an Americanmultinationalfood and beverage corporation
headquartered inPurchase, New York, United States.
acquisition ofTropicanain 1998 and a merger withQuaker Oatsin 2001
As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of
more than $1billion apiece, and the company's products were distributed
across more than 200 countries, resulting in annualnet revenuesof
$43.3billion.
 PepsiCo is the second largest food and beverage business in the world.
Brands formerly owned by PepsiCo include:Pizza Hut,Taco Bell,
KFC,Hot 'n Now,East Side Mario's,D'Angelo Sandwich Shops,Chevys
Fresh Mex, California Pizza Kitchen,Stolichnaya(via licensed agreement)
LIPTON OVERVIEW
Established in 1893 as Thomas J Lipton Co
The Lipton tea business was acquired by consumer goods
companyUnileverin a number of separate transactions, starting with the
purchase of the United States and Canadian Lipton business in 1938 and
completed in 1972
In 1991, Unilever created a firstjoint venturewith PepsiCo, the Pepsi Lipton
Partnership, for the marketing ofready to drink(bottled and canned) teas in
North America.
This was followed in 2003 by a second joint venture, Pepsi-Lipton
International (PLI), covering many non-United States markets.
PLI was expanded in September 2007 to include a number of large European
markets.
 In 2007 Unilever Renew agreement to add 11 new countries

8 in Europe

Germany, Italy, France, Netherlands, Switzerland, Austria, Belgium , Portugal

Korea, Taiwan, South Africa

PepsiCo and Unilever each control 50% of the shares of these joint ventures
Lipton is now the leading tea brand in the world
 WHY JV BETWEEN THIS TWO COMPANIES?

Leverages complementary strengths of Unilever's Lipton brand and

tea know-how with Pepsi bottling and distribution network

This new alliance will enable Lipton to strengthen its global position.

- Said by Peter Thompson, president and CEO of PepsiCo Beverages

International

The new JV will target "white space" markets where Lipton currently

is unavailable yet PepsiCo has a solid presence

Benefits by JV
Unilever
PepsiCo distributes and markets Lipton Ice Tea in more than 60 countries
where PepsiCo has established its corporate presence
Pepsi Co will move Lipton brand into new markets and new distribution
channels
Pepsi has a strong Customer Relations network

Pepsi Co.
Half share of profits to Pepsi Co in selling an established brand
Bottling of Iced Tea is done in Franchise bottling plants
Unilever will bring the brand, knowledge of the tea industry and a substantial
research and development capability to the JV
MARKET SHARE IN 2003
 SWOT ANALYSIS
STRENGTHS WEAKNESSE
S

OPPORTUNITIE THREATHS
S
Lipton PEST Analysis
 4Ps
Product
Lipton Sparkling green tea, a ready to drink blend of green tea with sparkling water
and fruit flavors. There are 12 flavors are available right now.
Price
Lipton-Between US$0.99 and $1.59 per 20ounce bottle
Arizona-$ 2.00 range per 20 ounce
Place
Through the joint venture agreement, PepsiCo would distribute Lipton tea products in
more than 60 countries.
Promotion
Lipton tea and bike town promotion in 2006
Win a smart car promotion in 2009
 REFERENCE
http://en.wikipedia.org/wiki/Lipton

https://

www.google.co.in/search?q=lipton+market+share+worldwide&rlz=1C1GTPM_enIN615IN615&es_sm=122&b

iw=1366&bih=667&tbm=isch&tbo=u&source=univ&sa=X&ei=NoKiVLWDMYOFuwTnooLYDQ&ved=0CBsQsAQ

http://

www.prnewswire.com/news-releases/pepsico-and-unilever-create-pepsi-lipton-international-rtd-tea-joint-venture-

in-selected-international-markets-72491072.html

http://www.unilever.com/mediacentre/pressreleases/2003/pepsi_lipton.aspx

http://www.unilever.com/mediacentre/pressreleases/2007/UnileverPepsicotoexpand.aspx

http://www.motherearthnews.com/nature-and-environment/rainforest-alliance-certification.aspx#axzz3NOIJnZKM

http://www.liptontea.com/product

http://en.wikipedia.org/wiki/White_space_% 28management%29

https://au.answers.yahoo.com/question/index?qid=20100607211120AA0n3Mg

http://en.wikipedia.org/wiki/Unilever

http://en.wikipedia.org/wiki/PepsiCo