PepsiCo has signed agreements with its Iraqi partners Baghdad Soft Drinks Company (BSDC) and Green Iraq Company (GICO) to expand manufacturing capacity, support farmers and create jobs in Iraq.
The agreements were signed during the US-Iraq High-Level Business Summit at the US Chamber of Commerce in Washington, held during Iraqi Prime Minister Ali Al Zaidi's visit to the US.
The signings were among a series of commercial understandings reached during the summit, part of a broader wave of private sector investment accompanying the Prime Minister’s visit. Together, they represent what is intended to be the parties’ shared ambition to further expand PepsiCo’s long-standing partnership with BSDC and GICO.
These deals outline plans to work towards expanded local manufacturing capacity, modernised farming techniques and the country’s aim to become a regional hub for food and beverage exports.
Mustafa Nizar Jumaa Al Ani, Minister of Trade of the Republic of Iraq, said: “This visit comes as part of the deepening bilateral relations between Iraq and the US, which is a partnership built on mutual interests and respect. These agreements will contribute to jobs, local industry, and opportunities for our youth, all while supporting Iraq’s economic diversification and competitiveness on the world stage.”
The partnership with GICO aims to expand the company’s manufacturing capabilities over time, supporting Iraq’s ambitions to grow as a food exporter.
It also aims to deepen ties with Iraqi farmers through the transfer of modern irrigation and farming knowledge, strengthening the Republic’s agricultural sector, he noted.
Ahmed Elsheikh, CEO of Foods, Middle East, North Africa and Pakistan, PepsiCo, said: “As one of the region’s historic farming heartlands, we want to support Iraq’s agricultural potential and industrial capacity to become a hub for food exports. Together with Green Iraq Company, we will work with local farmers over time to make our operations more sustainable, with the aim of building a supply chain that keeps more value inside the country and puts more Iraqi products on shelves across the region.”
According to him, the investment with BSDC outlines a shared ambition to work toward annual production capacity of more than 250 million cases, as part of efforts to reinforce Iraq’s position as one of PepsiCo’s most significant beverage manufacturing and bottling hubs in the Middle East.
The expansion, as it progresses, is intended to support new jobs across manufacturing, engineering, logistics, and distribution, along with training and knowledge transfer for Iraqi engineers and technicians.
Mohamed Shelbaya, CEO of Beverages, Middle East and Africa, PepsiCo, said: “Baghdad Soft Drinks Company has been one of our most important manufacturing partners in the region for more than four decades. This new phase of partnership creates an opportunity to explore further growth together while reaffirming our long-term commitment to building here in Iraq.”
Both agreements were signed on behalf of BSDC and GICO by Tarek Al Hassan, majority stakeholder.
“For more than seven decades, we have grown alongside PepsiCo. Today’s announcements reflect our ambition for the next phase of growth in our partnership with PepsiCo, hoping they will create new jobs for young people in Iraq. This is a partnership that keeps building, for us and for our nation,” he added.-TradeArabia News Service