PepsiCo Signs Agreement with Alibaba

PepsiCo Greater China Region (GCR) signed a strategic agreement with Alibaba Group, the world's largest online and mobile commerce company.

The collaboration enables PepsiCo to further enhance consumer experiences by leveraging Alibaba's data to introduce innovative marketing initiatives, customized products and integrated omnichannel solutions. In addition, PepsiCo expanded its reach in rural China by leveraging the distribution channels through Alibaba's Rural Taobao program (Alibaba’s ambitious effort to turn China’s 600 milion rural residents into online shoppers).

It is not the first agreement of this type for Alibaba, which had signed in 2016 a strategic e-commerce partnership with Mondelez to sell Oreo, belVita and Toblerone brands on Alibaba.

The agreement was signed at the PepsiCo Asia R&D Center in Shanghai, by Mike Spanos, PepsiCo GCR President and CEO, and Jet Jing, vice president of Alibaba Group.

"Developing our e-commerce business is one of PepsiCo's strategic priorities," said Mike Spanos, PepsiCo GCR President and CEO. "Through this collaboration, we will fully take advantage of Alibaba's platform and data to carry out more innovative experiments, perfect PepsiCo's products and services, and enhance online consumer experiences. Our joint effort with Alibaba will help us lead the ever-changing consumer trend and better serve Chinese consumers."

Jet Jing, vice president of Alibaba Group, added: "Alibaba Group is committed to enabling brands by helping them leverage our big data capabilities and omnichannel solutions to further drive strategic growth in the China market."

The strategic agreement is built upon the existing success between PepsiCo and Alibaba in their e-commerce partnership.

Since establishing a flagship store on Tmall in 2012, PepsiCo has launched a series of online marketing initiatives.

Recent examples include PepsiCo's 2016 Super Brand Day, Quaker's co-branded campaign with Tmall during Alibaba's 11.11 Global Shopping Festival, and Kumamon-branded Lay's gift campaign during Chinese New Year.

PepsiCo is considered one of the biggest potato processors in the world.