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Unilever PLC (ULVR)

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Friday 14 September, 2007

Unilever PLC


Unilever PLC
14 September 2007

                         UNILEVER AND PEPSICO TO EXPAND

                        READY-TO-DRINK TEA JOINT VENTURE

  • Agreement will double current International Joint Venture volume

  • Leverages complementary strengths of Unilever's Lipton brand and tea
    know-how with Pepsi bottling and distribution network

September 14th, 2007

PepsiCo and Unilever today announced they have agreed to expand their
International partnership for the marketing and distribution of ready-to-drink
tea products under the Lipton brand, the world's best-selling tea.

The new agreement adds 11 countries to the partnership's existing Lipton
ready-to-drink tea business.  The business in these countries - eight in Europe
(Germany, Italy, France, Netherlands, Switzerland, Austria, Belgium and
Portugal) as well as Korea, Taiwan and South Africa - had combined systems sales
to the trade of around €300m in 2006.  The new agreement effectively completes
the partnership and creates the leading global ready-to-drink tea business.

The new agreement builds on the original 1991 Pepsi Lipton Tea Partnership
(PLTP) North American joint venture that established Lipton as the leading
ready-to-drink tea brand in the United States, and on the subsequent 2003 Pepsi
Lipton International (PLI) joint venture that currently spans more than 40
countries and has enjoyed strong double-digit volume growth.

The new agreement will more than double the volume of the companies' current PLI
joint venture and positions both companies to capture more of the growth
opportunities associated with the rapidly expanding global ready-to-drink tea

Under the terms of the agreement a mechanism is established for PLI to open new
ready-to-drink tea markets.  Each company will continue to own 50% of the joint
venture, with PepsiCo paying Unilever an undisclosed sum for its share of the
businesses in the new markets being transferred.

'This is a wonderful opportunity to strengthen our position in one of the
fastest-growing beverage categories,' said Michael White, chief executive
officer of PepsiCo International and vice chairman of PepsiCo.  'Lipton is one
of the world's great beverage brands, and will continue to be a key pillar of
our strategy to offer international consumers a portfolio of convenient
beverages to address a wide range of needs.'

Vindi Banga, Unilever's president for Foods, said: 'This agreement gives us the
opportunity to build on the tremendous success of the joint ventures to date.
It provides an excellent opportunity to realise the long-term potential of the
Lipton ready-to-drink brand, and Pepsi's expertise in the drinks sector will
help us drive innovations faster and more competitively.'

The agreement is subject to receiving approvals from the relevant regulatory
authorities, employee consultations, and, for Portugal and South Africa,
agreement with Unilever's existing partners.  The transaction is expected to be
effective from the beginning of January 2008.


About PepsiCo

PepsiCo (NYSE: PEP) is one of the world's largest food and beverage companies,
with 2006 annual revenues of more than $35 billion. The Company employs
approximately 168,000 people worldwide, and its products are sold in
approximately 200 countries. Its principal businesses include: Frito-Lay snacks,
Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods.
The PepsiCo portfolio includes 17 brands that generate $1 billion or more each
in annual retail sales. PepsiCo's commitment to sustainable growth, defined as
Performance with Purpose, is focused on generating healthy financial returns
while giving back to communities the company serves. This includes meeting
consumer needs for a spectrum of convenient foods and beverages, reducing the
company's impact on the environment through water, energy and packaging
initiatives, and supporting its employees through a diverse and inclusive
culture that recruits and retains world-class talent.  PepsiCo is listed on the
Dow Jones North America Sustainability Index.   For more information, please

About Unilever

Unilever's mission is to add vitality to life. We meet everyday needs for
nutrition, hygiene and personal care with brands that help people feel good,
look good and get more out of life.

Unilever is one of the world's leading suppliers of fast moving consumer goods
with strong local roots in more than 100 countries across the globe.  Its
portfolio includes some of the world's best known and most loved brands
including twelve €1 billion brands and global leadership in many categories in
which the company operates.  The portfolio features brand icons such as Flora,
Bertolli, Dove, Lux, Pond's, Lynx, Sunsilk, Persil, Cif and Domestos.

Unilever has around 179,000 employees in approaching 100 countries and generated
annual sales of €40 billion in 2006.  For more information about Unilever and
its brands, visit


This announcement may contain forward-looking statements, including
'forward-looking statements' within the meaning of the United States Private
Securities Litigation Reform Act of 1995.  Words such as 'expects',
'anticipates', 'intends' or the negative of these terms and other similar
expressions of future performance or results, including financial objectives to
2010, and their negatives are intended to identify such forward-looking
statements.  These forward-looking statements are based upon current
expectations and assumptions regarding anticipated developments and other
factors affecting the Group.  They are not historical facts, nor are they
guarantees of future performance.  Because these forward-looking statements
involve risks and uncertainties, there are important factors that could cause
actual results to differ materially from those expressed or implied by these
forward-looking statements, including, among others, competitive pricing and
activities, consumption levels, costs, the ability to maintain and manage key
customer relationships and supply chain sources, currency values, interest
rates, the ability to integrate acquisitions and complete planned divestitures,
physical risks, environmental risks, the ability to manage regulatory, tax and
legal matters and resolve pending matters within current estimates, legislative,
fiscal and regulatory developments, political, economic and social conditions in
the geographic markets where the Group operates and new or changed priorities of
the Boards.   Further details of potential risks and uncertainties affecting the
Group are described in the Group's filings with the London Stock Exchange,
Euronext Amsterdam and the US Securities and Exchange Commission, including the
Annual Report & Accounts on Form 20-F.  These forward-looking statements speak
only as of the date of this announcement. Except as required by any applicable
law or regulation, the Group expressly disclaims any obligation or undertaking
to release publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Group's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.


This release contains statements concerning PepsiCo's expectations for future
performance. Any such forward-looking statements are inherently speculative and
are based on currently available information, operating plans and projections
about future events and trends. As such, they are subject to numerous risks and
uncertainties. Actual results and performance may be significantly different
from expectations. PepsiCo undertakes no obligation to update any such
forward-looking statements. Please see PepsiCo's filings with the U.S.
Securities and Exchange Commission, including PepsiCo's Annual Report on Form
10-K, for a discussion of specific risks that may affect performance.

                      This information is provided by RNS
            The company news service from the London Stock Exchange