PepsiCo expands African footprint with US$20M factory in Nigeria 

NIGERIA – PepsiCo, in collaboration with global logistics provider DP World, has officially commissioned a US$20 million manufacturing facility in Lagos, Nigeria.  

The investment marks a significant milestone in the country’s industrialisation efforts and demonstrates growing foreign confidence in Nigeria’s economy. 

The facility, which commenced operations this week, produced its first locally made Cheetos snacks and will also manufacture Lay’s and Doritos.  

More than 90% of raw materials for the plant will be supplied locally, sourced from partners such as Northern Nigeria Flour Mills, Grand Cereals, and Babban Gona. 

Nigeria’s Finance Minister, Wale Edun, described the development as evidence of the country’s shift from heavy reliance on imports toward becoming a competitive production hub under the African Continental Free Trade Area (AfCFTA).  

He credited the Tinubu administration’s economic reforms, including the removal of fuel subsidies, forex liberalisation, and market-based pricing, for creating an environment that encourages foreign direct investment. 

Ahmed El-Sheikh, CEO of PepsiCo – Middle East, North Africa, and Pakistan Foods (MENAPAK) and Egypt, emphasised Nigeria’s importance in the company’s global strategy. “Nigeria is central to our strategy. This facility reflects our belief in the country’s future and our commitment to sustainable investment,” he said. 

The Lagos project is expected to generate employment opportunities, empower local farmers, enhance supply chain efficiency, and improve Nigeria’s competitiveness in both regional and global markets.  

Beyond production, PepsiCo and DP World have expanded their partnership with WaterAid in Nigeria to improve community well-being.  

Together, they plan to launch a climate-resilient water, sanitation, and hygiene (WASH) programme in Lagos, which is projected to benefit more than 6,500 people in underserved communities. 

PepsiCo Strengthens Ties in Laos 

Meanwhile, PepsiCo has extended its longstanding partnership with Lao Brewery Co., Ltd. (LBC) through a new 15-year agreement. The collaboration builds on more than five decades of cooperation and reflects both companies’ confidence in the Lao market. 

Henrik Andersen, Managing Director of LBC, said the agreement supports the company’s goal of expanding its product portfolio while aligning with Carlsberg’s “Accelerate SAIL’27” strategy, under which LBC operates. 

The PepsiCo-LBC partnership has been instrumental in shaping the Lao soft drink market, introducing popular global brands including Pepsi, 7UP, Mirinda, and Sting. 

Under PepsiCo’s “Power of One” model, the renewed deal will integrate snacks and beverages within a single commercial framework, supported by enhanced digital sales and distribution channels. 

Parinya Kitjatanapan, PepsiCo’s Asia & ANZ Beverages General Manager, highlighted the growth achieved through the collaboration, noting the increase from under one million cases in its early days to over 20 million cases annually. 

Earlier this year, the companies expanded their cooperation to include PepsiCo’s snack portfolio. In July 2025, Lipton Ready-to-Drink tea was also introduced to the Lao market, further broadening the partnership’s scope. 

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