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PepsiCo, Tampico In Distribution Deal - Update

(RTTNews) - Pepsi Beverages Company a division of PepsiCo, Inc. (PEP), and Tampico Beverages, Inc., a supplier of value-added juice drink concentrates, Friday announced an agreement to distribute Tampico Plusfruit-flavored beverage products through PepsiCo's direct store delivery system in select U.S. markets. Financial terms of the agreement were not disclosed.

The addition of Tampico Plus, an extension of the of Tampico beverages, is indicated as part of PepsiCo's strategy to provide a range of healthier beverage choices. Tampico Pluscontains 50% less sugar than regular Tampico products, with 100% of the recommended daily allowance of vitamin C per eight-ounce serving, and qualifies as a source of vitamins A and E under the U.S. Food and Drug Administration's food labeling guidelines.

Tampico Plus is also compliant with school beverage guidelines for U.S. high schools, a set of standards established by the Alliance for a healthier generation, a joint initiative of the American Heart Association and the William Clinton Foundation to provide students with more nutritious choices. The product is a refrigerated juice-drink brand in the U.S. grocery channel, andaccepted in many southwestern markets.

The deal is also indicated as part of PepsiCo's previously announced Learning Labs program, an initiative designed to strengthen and diversify its brand portfolio by providing access to new beverage categories. PepsiCo will begin distributing the product during the second quarter of 2010 across parts of California, Texas, Arizona, Nevada, Florida and Georgia.

PEP is traded at $66.13 up $0.16 or 0.24% on a volume of 1.929 million shares on the NYSE.