PepsiCo signs deal to expand Iraqi production capacity to 250 million units a year

BAGHDAD, Iraq — PepsiCo has signed a new memorandum of understanding with Baghdad Soft Drinks Company to raise its annual production capacity in Iraq to more than 250 million units, according to Food Navigator. The agreement was announced at the US-Iraq Business Summit, where PepsiCo Middle East, North Africa and Pakistan CEO Ahmed El Sheikh said Iraq remains one of the region's historic agricultural hubs. El Sheikh said the company aims to support the development of Iraq's agricultural and industrial capacity into a center for food exports, and to help build a stronger domestic food production sector that creates opportunities for farmers and local industry. PepsiCo is expanding through its existing local partnership, which has been in place since 1984. Middle East and Africa Beverages CEO Muhammad Shalabiya said PepsiCo views Iraq as one of the key players in regional beverage manufacturing and is working to make the country one of the Middle East's leading beverage production hubs. The report cited Iraq's geographic location, young population and access to locally produced agricultural inputs as investment advantages. The same report identified cold-storage facilities, energy supply stability and transportation logistics as the main infrastructure challenges limiting production in Iraq. PepsiCo has not disclosed a timeline for the expansion.