Pepsico set to abandon NourishCo Beverages

The multinational Tata Consumer Products has agreed to acquire PepsiCo’s stake in NourishCo Beverages, the Indian 50:50 joint venture set up between the two firms in 2010.

With the acquisition, Tata Consumer intends to strengthen its position in the liquid refreshment beverages space in India. NourishCo’s portfolio includes Himalayan mineral water, Tato Gluco Plus and Tata Water Plus.

The deal, which was made for an undisclosed sum, follows the merger of Tata Chemicals and Tata Global Beverages to form Tata Consumer Products and marks a new strategic expansion into India’s fast-moving consumer goods market.

Under the new umbrella, the firm’s portfolio ranges from tea, coffee and water to salt, spices and packaged food. Key brands include Tata Salt, Tata Tea, Tetley and Eight O’clock.

The divestment by Pepsico is part of its strategy to focus more on the snacks business. In 2019, it announced plans to invest $74.4 million over three years to build a new snacks manufacturing plant in Uttar Pradesh.