Radenska ends Pepsi bottling deal after decades

Radenska, a prominent Slovenian beverage company and part of the Kofola Group, announced it will end its decades-long partnership with PepsiCo starting next year. The company stated this move is to further strengthen its strategic focus on developing its own brands and core business operations.

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Today we have strong brands, modern production facilities, a lot of knowledge, and a dedicated team that I trust. I believe that changes open up new opportunities.

Marian Šefčovič, CEO of Radenska Adriatic, expressed confidence in the company's existing strong brands, modern production facilities, expertise, and dedicated team. He believes this change opens new opportunities and highlights Radenska's adaptability and success in responding to various challenges. "We are now focusing on our own brands and further strengthening our position, laying solid foundations for future growth," Šefčovič was quoted as saying.

The decision is viewed as an opportunity for the entire Kofola Group to bolster its business model. Jannis Samaras, CEO of the Kofola Group, explained that the Pepsi bottling business was low-margin, contributing only a few percent to their revenue. He sees this primarily as a chance to accelerate the growth of their own brands.

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We are now focusing on our own brands and further strengthening our position, laying solid foundations for future growth.

Radenska is preparing a comprehensive transition plan to ensure a smooth adaptation to the new conditions. Production and distribution capacities freed up by the end of the Pepsi contract will be redirected towards expanding and accelerating the growth of Radenska's own products and other licensed brands. Employees were informed of the decision last week, with reports suggesting that the first measure might be not renewing fixed-term contracts.

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From the perspective of the Kofola Group, this is a low-margin business that contributed only a few percent of our revenue. We see this primarily as an opportunity for further growth of our brands.