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PepsiCo Says Gatorade To Be Distributed Via Direct Store Delivery System For Select Channels In 2011 - Quick Facts

September 1, 2010, Wednesday, 20:10 GMT | 15:10 EST | 00:40 IST | 03:10 SGT

(RTTNews) - PepsiCo (PEP) announced a change of distribution for its Gatorade products in the key trade channels of Convenience, UDS or up and down the street and Dollar from a warehouse-delivered go-to-market system to direct store delivery through both company-owned and independent bottlers in the United States and Canada. The company said that it expects the change to become effective January 1, 2011.

The company said that this will be the first large scale step toward optimizing delivery systems resulting from the bottling acquisitions earlier this year.

The expected synergies related to these changes are included in the company's target of $400 million in pre-tax annualized synergies from the bottling acquisitions once fully implemented by 2012, the company said.