Baku: The Carlsberg Group is set to expand its strategic collaboration with PepsiCo by becoming the official bottler for PepsiCo products in Azerbaijan starting January 1, 2027. This move marks a significant extension of their partnership.

According to Azerbaijan State News Agency, the agreement will enable the Carlsberg Group to take charge of the production, sale, and distribution of PepsiCo's diverse soft drink portfolio across Azerbaijan. While the current PepsiCo bottler, Mars Overseas, will continue its operations temporarily, the Carlsberg production facility in Khirdalan is scheduled for a major reconstruction and capacity enhancement to accommodate the new responsibilities.

With this agreement, Carlsberg will have bottling arrangements with PepsiCo spanning 15 global markets, including the UK, Ireland, and several Nordic countries, as well as Kazakhstan, Kyrgyzstan, Laos, and Cambodia. From 2029, Denmark, Finland, Estonia, Latvia, and Lithuania will also be part of this expansive network alongside Azerbaijan from 2027.

The partnership highlights the commitment of both Carlsberg and PepsiCo to establish scalable and locally relevant beverage operations aimed at fostering long-term growth in Azerbaijan. Carlsberg Group CEO Jacob Aarup-Andersen expressed enthusiasm about integrating PepsiCo's iconic brands with their existing beer portfolio in Azerbaijan, emphasizing the potential for business expansion and consumer choice enhancement.

Krasimir Lazarov, Managing Director of Carlsberg Azerbaijan, noted that this partnership is poised to create significant opportunities, with expectations of volume doubling, substantial investments in the production site, and the creation of new employment opportunities. Carlsberg Azerbaijan aims to establish itself as a leading beverage producer in the region.