PepsiCo Agrees to Acquire Spitz International Company



    Leading Canadian Sunflower and Pumpkin Seed Maker to Operate as Part of
Frito-Lay North America
    

    
    PURCHASE, N.Y., Oct. 29 /PRNewswire-FirstCall/ -- PepsiCo announced today
an agreement to acquire Spitz International Inc., the leading maker of
sunflower and pumpkin seeds in Canada.  Upon completion of the acquisition
Spitz will continue its Canadian operations in Bow Island and Medicine Hat,
Alberta, and will report into Frito-Lay North America.
    

    
    Spitz is the leading Canadian brand of sunflower and pumpkin seeds and
has strong growth potential across North America. The acquisition will support
Frito-Lay's plans to participate more broadly in the nuts and seeds category.
Spitz complements Frito-Lay's growing portfolio of healthier snack options,
such as this year's introduction of True North nut snacks.
    

    
    Spitz seeds are distributed nationally in Canada and are readily
available in the United States. The company's sunflower seeds are available in
six flavors (salted, seasoned, dill pickle, spicy, chili lime and smokey bbq)
and its pumpkin seeds are available in three flavors (salted, seasoned and
dill pickle). All of Spitz's seeds are meticulously grown and harvested as
well as roasted through the company's own patented process.
    

    
    "We are looking forward to having Spitz's leading seed brands in the
Frito-Lay family," said Al Carey, Frito-Lay North America President and CEO.
"Spitz enables Frito Lay Canada to grow our seed business in Canada and help
us expand in the U.S., while supporting PepsiCo's broader health and wellness
strategy. Spitz has a very strong brand in Canada, and we plan to create new
growth opportunities for the brand across North America."
    

    
    "Frito Lay Canada is one of Canada's largest food companies and we have a
proud history of growing small Canadian companies to expand the distribution
of their products," said Marc Guay, president, Frito Lay Canada.  "We're
excited about the opportunities with Spitz and we'd like to thank Tom and Emmy
Droog for everything they've done to build a terrific business."
    

    
    Spitz International was founded in 1982 by Dutch immigrants Tom and Emmy
Droog, who brought with them a passion for healthy living and farming.  They
began growing sunflowers in 1982 and first marketed their first sunflower
seeds as bird feed before recognizing an opportunity to expand into the
consumer confectionary market.  Spitz not only became one of the first
companies in North America to produce flavored sunflower seeds, but also one
of the first to market sunflower seeds in re-sealable bags.  Soon after Spitz
became one of the first North American companies to market flavored pumpkin
seeds.
    

    
    "After nearly thirty years of hard work we're excited to see our company
and brand grow and expand across North America," said Tom Droog, Spitz
co-founder.  "Our modest plans have surpassed our expectations and now with a
company like Frito-Lay behind Spitz we know our legacy will continue and our
company will be in a better position to reach our goal: to become the leading
sunflower and pumpkin seed brand in North America."
    

    
    Terms of the transaction were not disclosed and the agreement becomes
effective upon closing.
    

    About Spitz International Inc.
    
    Established in 1982 by Tom and Emmy Droog, Spitz International Inc. is
Canada's leading producer of sunflower and pumpkin seeds.  Spitz is Canada's
leading sunflower send company and sells the top ten sunflower SKUs in Canada.
 The company is also a popular brand of sunflower seeds in the United States. 
Employing approximately 70 people, Spitz's distribution centre is based in
Medicine Hat, Alberta, Canada, while the production facility and company
headquarters is located in Bow Island, Alberta.  For more information, visit
www.spitz.ca.
    

    About Frito-Lay North America
    
    Frito-Lay North America is the $11 billion convenient foods business unit
of PepsiCo, which is headquartered in Purchase, NY. In addition to Frito-Lay,
PepsiCo business units include Pepsi-Cola, Quaker Foods, Gatorade and
Tropicana.
    

    About PepsiCo
    
    PepsiCo (NYSE:   PEP) is one of the world's largest food and beverage
companies, with 2007 annual revenues of more than $39 billion. The company
employs approximately 185,000 people worldwide, and its products are sold in
approximately 200 countries. Its principal businesses include: Frito-Lay
snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and
Quaker foods. PepsiCo's commitment to sustainable growth, defined as
Performance with Purpose, is focused on generating healthy financial returns
while giving back to communities the company serves. For more information,
please visit www.pepsico.com.
    

    Cautionary Statement
    
    This release contains forward-looking statements of expected future
developments, including expectations regarding anticipated earnings associated
with the Spitz acquisition. These forward-looking statements reflect
management's expectations and are based on currently available data; however,
actual results are subject to risks and uncertainties, which could materially
affect actual performance. Risks and uncertainties that could affect our
future performance include, but are not limited to, the following:
competition, including product and pricing pressures; changing trends in
consumer tastes; changes in our relationship and/or support programs between
brand owners and anchor bottlers; market acceptance of new product and package
offerings; weather conditions; cost and availability of raw materials;
changing legislation; outcomes of environmental claims and litigation;
availability and cost of capital including changes in our debt ratings; labor
and employee benefit costs; unfavorable interest rate and currency
fluctuations; costs of legal proceedings; and general economic, business and
political conditions in the countries and territories where we operate. Any
forward-looking statements should be read in conjunction with information
about risks and uncertainties set forth in the Securities and Exchange
Commission reports filed by PepsiAmericas and PepsiCo, respectively, including
our 2007 Annual Reports on Form 10-K.
    



    




For further information:

For further information: Dave DeCecco of PepsiCo, +1-914-253-2655,
david.dececco@pepsi.com Web Site: http://www.pepsico.com                
http://www.spitz.ca


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