Unilever, PepsiCo Take Lipton Global

Unilever and PepsiCo have formed a joint venture, Pepsi Lipton International, to expand global distribution and marketing of Lipton ready-to-drink tea.

The 50:50 joint venture will use PepsiCo's bottling and distribution network to launch Lipton in new markets that are strong Pepsi markets. It will also expand current Lipton markets including Brazil, Spain, Greece, Poland, Czech Republic, Slovakia, Hungary, Albania, Romania, Thailand, Singapore, Vietnam, Australia, Turkey, Egypt and Saudi Arabia.

"We have a strong presence in the developing and emerging markets, yet there is plenty of 'white space' to move into," Patrick Cescau, director of Unilever Foods Division, said in a statement. "These markets are the next in our planned rollout and we see Pepsi as the best partner to help us achieve this."

Unilever lends its R&D expertise and gives Pepsi a strong global brand to round out its healthy-beverage portfolio. London-based Pepsi Lipton International will primarily sell tea concentrate to franchise bottlers. Lipton's global sales top $4 billion annually.

PepsiCo and Unilever collaborated 10 years ago on the Pepsi Lipton Tea Partnership, now the leading ready-to-drink tea player in the U.S. and Canada. The new venture fits Unilever's "Path to Growth" strategy that leverages master brands. Its general manager will report to a board of directors drawn equally from Rotterdam-based Unilever and PepsiCo, Purchase, NY.