PepsiCo is proceeding with a competitive process to award the distribution of Frito-Lay products in Cyprus to an external partner (third-party logistics partner) for products including the well-known Lay's potato chips.
The agreement, as reported by sources, is estimated to be worth close to €40 million and is expected to impact the distribution market and organised retail given that it concerns some of the strongest brands in various consumer product categories.
This is a strategic decision by PepsiCo to transfer the distribution of Frito-Lay products to a specialised partner following the outsourcing model, a practice widely applied by large multinationals with the aim of optimizing the supply chain and enhancing efficiency.
The contenders
According to information provided by sources, among the most prominent contenders for the contract are KEAN, Argosy, A&P in collaboration with KEO, and Mitsi Group (Tryofon Tseriotis). The final selection is considered particularly important, as the contractor will acquire one of the strongest product portfolios in the Cypriot market, with a presence in almost every retail point of sale.
Strong brands in the portfolio
Frito -Lay is PepsiCo's global salty snacking arm and is one of the largest companies in the world. It has been a subsidiary of PepsiCo since 1965 and has a product portfolio that dominates most markets around the world. Frito-Lay's portfolio also includes Doritos, Cheetos and Ruffles, products with significant market shares and high consumer recognition.
PepsiCo is one of the largest multinational food and beverage groups in the world, with a strong footprint in more than 200 markets. Its portfolio includes iconic brands such as Pepsi, Lay's, Doritos, Gatorade and Quaker, while its strategy increasingly focuses on optimising the supply chain and outsourcing critical functions to specialised partners. The move to Cyprus is part of this broader operating model, aiming for greater flexibility and efficiency in the local market.
(Source: InBusinessNews)
