PepsiCo is set to resume 60% of its soft drink production for the Greek market domestically by the end of 2024, marking a significant return to local manufacturing after closing its factory in Oinofyta in 2016. Production will commence at the NuAqua plant in Loutraki, starting with PET-bottled soft drinks. This facility, once owned by PepsiCo Hellas, was sold to NuAqua in 2021 and will also begin producing soft drinks in glass bottles during the next phase.
This decision comes as part of a broader shift in strategy due to global market conditions, including the war in Ukraine and rising transportation costs. "The market conditions were very different when we moved production to Romania. Transportation costs were much lower back then, but with the current geopolitical landscape and higher transportation expenses, we’ve decided to bring more production back to Greece," explained Inga Dengel, CEO of PepsiCo Hellas, during a press briefing.
PepsiCo has already taken steps towards this transition. Last year, EPSA, a local Greek soft drink producer, began producing canned soft drinks for PepsiCo, excluding Pepsi Cola and 7UP. The agreement with NuAqua is set for three years, with the potential for renewal. Similarly, PepsiCo’s three-year partnership with EPSA could also be extended, especially as EPSA seeks to stabilize its market share.
Although there were concerns that EPSA would not renew its deal with PepsiCo, due to needing full production capacity for its own products, it appears that extending the collaboration is now more likely. The multinational company is considering further partnerships with other bottlers in Greece, and there’s speculation that EPSA may eventually take over the production of Pepsi Cola and 7UP in cans.
In terms of PepsiCo’s broader business plans in Greece, the company remains focused on the snack sector, where it holds a leading market position through its Tasty products line. Dengel noted the company’s ambition to "double our activity," though this is a challenging goal, particularly in the HORECA (hotel, restaurant, and café) sector, where PepsiCo’s soft drink market share remains around 5%.
In 2023, PepsiCo Hellas recorded a turnover of approximately €234 million, an 18% increase from the previous year, and returned to profitability. The decision to ramp up domestic production is seen as a strategic move to further boost growth and operational efficiency in the Greek market.
