PepsiCo Reaches for Growth in Africa

PepsiCo (NASDAQ: PEP) is an iconic snack food and beverage company with global reach. That reach got a bit longer with the company's announced acquisition last week of Johannesburg-based Pioneer Foods, which is one of South Africa's largest food and beverage companies. PepsiCo plans to use it as a platform to expand further into Africa.

As one of South Africa's largest food and beverage companies, Pioneer Foods owns valuable brands that appeal to local tastes. However, equally important for PepsiCo is the prospect of using the company as a beachhead for further expansion into sub-Saharan Africa, where PepsiCo currently has a small footprint.

An aerial view of the coastline of Johannesburg, South Africa. Image Source: Getty Images

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