JD.com Lands Strategic Partnership With Global Giant PepsiCo
The two retailers are eyeing an increase of 300% in the sales of family-sized products in the next three years.
JD.com Inc. (Nasdaq: JD) has partnered with American beverages and food producer PepsiCo Inc. (Nasdaq: PEP).
The Beijing-based e-commerce giant announced it has signed a strategic cooperation on Tuesday, under which the two giants will carry out joint marketing, data sharing and supply chain enhancement. They are now expecting to see an increase of 300% in the sales of family-sized products in the next three years, according to various Chinese media.
"PepsiCo is a leader in the global food industry and an important partner of JD Supermarket for many years. The establishment of a strategic partnership between the two parties will achieve the greatest possible sharing of resources and a win-win situation, thereby creating a more brilliant new situation," Yi Feng, the vice president of JD.com, said at the signing ceremony.
The two companies boast billions of dollars in net revenue. Food, snack and beverage giant PepsiCo reported net revenue of $17.2 billion in the third quarter through September while JD.com's revenue in the third quarter hit $19.2 billion.
PepsiCo owns brands including Pepsi, Lay's chips, Doritos tortilla chips, Quaker oats and Aquafina water across more than 200 countries. Its Chinese subsidiary kicked off in 1993 through the introduction of Lay's chips and now operates seven factories in China. The company said it will offer customized products for JD.com's users under the strategic cooperation.
The stock in JD.com was trading at $40.07 per American depositary share intraday on Wednesday, down 23 cents.
PepsiCo recently made headlines announcing a move towards 100% renewable electricity for its U.S. operations. Former CEO of the company, Indra Nooyi, announced she has bought more PepsiCo stock.
PEP shares were up around five dollars since these announcements, trading at $139.12 per share as of midday.