Pioneer Foods exports to more than 80 countries and posted revenue of R20.2 billion in 2018.
Scaling sub-Saharan business
PepsiCo chairman and CEO, Ramon Laguarta commented, “As we look to accelerate our growth in key markets around the world and achieve our vision to ‘Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose’, we are absolutely thrilled to join forces with Pioneer Foods, one of South Africa’s leading food and beverage companies.”
Socioeconomic commitments
This transaction creates a leading food and beverage company in Africa led from South Africa, with a commitment to supporting the broad socioeconomic imperatives of employment, talent development, and benefiting local suppliers, PepsiCo said. The global food giant plans to expand its Sustainable Farming Program in Africa and work with local farmers in Pioneer Foods’ communities – including women and rural smallholders – “to help boost yields, improve livelihoods, and preserve precious natural resources”.
“Today’s announcement marks a very exciting milestone for Pioneer Foods and our people, and highlights the strength of what we have created,” said Tertius Carstens, CEO of Pioneer Foods. “As part of PepsiCo, we will have greater scale to expand our leading brands, greater capital to invest in local agriculture and people, greater access to leading global capabilities and a partner committed to taking our company to even greater heights.”
Regional operating centre
As part of this transaction and PepsiCo’s goal to “become faster and more locally-focused”, the company will create a new operating sector for sub-Saharan Africa (SSA). PepsiCo SSA will be led by Eugene Willemsen, who most recently served as executive vice president of Global Categories & Franchise Management.