Beijing Pepsi. PepsiCo Inc. With a turnover in 2008 of 43.2 billion USD and a net profit of over 5 billion, PepsiCo Inc. is one of the largest global WATER & CSD SECTOR groups in the food & beverages sector. Beijing Pepsi The International PepsiCo Group close to 185,000 people worldwide and Beijing, China its >> shrinkwrapper countries. SMIFLEXI SK 600 F the company include: Frito-Lav snacks, >> Casepacker Pepsi-Cola SMIFLEXI WP 600 drinks, American products multinational are The sold in principal beverages, Tropicana fruit food products. 28 employs almost 200 activities Gatorade juices, of sport Quaker installation. PepsiCo re-launches the conquest of China. In late 2008 the American colossal of beverages alcohol-free announced it a portfolio of important products on a local basis and, with new investments, would invest a billion dollars to reach an elevated in China over the next four capacity of research and years. development. This is the largest investment of the company This is in the Asian country in the which requires last commitment thirty years, in line a strategy, a strong from the with the strategy of aiming supplier predominantly at emerging the economies with a high level Consequently, of growth, also in view of new the has become a priority for falling consumption in Pepsi which will all be in invested the western to and hinterland area expand and the network, products and to install the lines, it machines respond to criteria of efficiency, reduced the maximum costs and operating versatility, to production ensure the greatest return activity on the initial investment. the sales For almost developing new has been extend within China, of research to above giant. production The amount of American many Western countries. allocated network targeted at the PepsiCo a the in decade SMI provider China, of where local market. The forecast fifteen machines have been is to create thousands of installed new jobs. In China PepsiCo packaging in shrink film and and the partner companies in already employ more than cases 22 thousand people. around for secondary corrugated has using system. also wrapPepsiCo entrusted itself ƒ Development passes to through growth technology of SMI for the in production and recent provision of an SK distribution capacity. 600 The battle of PepsiCo to conquer the most populated market in the world aims at developing the cardboard the F experience shrinkwrapper and for the Peking plant, dedicated to packaging PET bottles of 0,6 / 1,25 and 2 litres in film only. 29 BEIJING PEPSI In an supplier increasingly for the machines intends the line of 36,000 bottles / to increase its to packaging aggressive market, PepsiCo be added to competitiveness, entrusting hour at its Peking plant. itself to companies capable The of responding to the best machines expectations of an ongoing commitment and ensuring SMI the by the the Italian company in the lifecycle of the “R&D” result an adequate service during entire the packaging are search purchased installations. and for in centre new the of solutions development ƒ How to ensure excellent of new technologies to be returns able on initial Production greater operating flexibility excellent quality/price ratio are the main and these consider SMI factors an contained global maintenance costs. Through which have driven PepsiCo to greater reduced environmental compatibility, innovation, installation: machines by management costs, greater ease, technological the produce productivity, efficiency, operating of to characterised investment. an accurate analysis of the life cycle of ideal the product, the customer obtains PepsiCo and sustainable development the return on maximum equity (ROE) in machines and installations. PepsiCo strongly believes in the economic development of China. In fact, the country also seems able to ensure good development prospects for the future: according to Euromonitor analysts the sales of flat soft drinks will grow this year (2009) by 16% while those of carbonated soft drinks will increase by 7% for a turnover which should reach 20 billion dollars. The expansion of PepsiCo in China also include above all in relation to local agriculture and conservation natural resources, through the support numerous programmes of local communities. These efforts are part of the project local community and optimise space, frequent the operations of use and management. For the automation of its machines, uses to the SERCOS communication control to the the axes acquire I/O and devices machine, simplifying 30 production make format changes and simplify the water, etc. flexible effectively respond to current needs pilot different initiatives to save energy, protect are compact, and machines and in series electronic, modular bus, success without traumatic impacts on the the f shrinkwrappers SK interface targeted at achieving economic and financial involving o SMI the fully SMI entitled “Performance with Purpose” which is society, of to projects the commitment to support respect of the environment, of The the on greatly control installation. Over a century of history Pepsi-Cola was set up in 1898 in a town in North Carolina, in the United States, where pharmacist, Caleb Bradham, tried to create a soft drink based on cola which was healthy, thirst quenching and an aid to digestion. He succeeded with pepsin, the enzyme that facilitates digestion and which, though absent in what was known as Brad’s drink, inspired the inventor with the name of the product, which would become famous worldwide: Pepsi-Cola. The phenomenal success of the soft drink drove Bradham to set up the PepsiCola Company in 1903. From the outset great importance was given to packaging and the consumer. In 1907 the attractive and practical bottle was created which confirmed the great success of Pepsi in half of the United States, with 250 bottling plants. Having consolidated production and distribution, the Pepsi- Cola Company began to conquer the other States of the Union, while since the Thirties it has expanded internationally to reach Latin America, Canada and even the Soviet Union. Subsequent years were marked by a process of worldwide expansion. In the Sixties PepsiCo became the second producer of soft drinks in the world. The company aspired to become spokesperson for the new American generation, giving itself a modern forward-looking image summarised in the slogan system and increasing the performances and reliability the market of soft drinks, PepsiCo embarked on its mission to conquer China, Eastern Europe, Mexico and Argentina. of the machine. Consequently, “Pepsi generation”. In the Nineties, to confirm its leadership in the SMI packaging machines become synonymous production use, with yields, simplification operations of elevated ease in of the installation and integration with other systems. 31 BEIJING PEPSI THE WORD TO THE CUSTOMER – Interview with Mr. Qi Ming-Jian, General Manager of Beijing PepsiCola, Mr. Xu Wei-Xue, Production Manager of Beijing Pepsi-Cola and Mr. Mike White, Vice-Chairman and Chief Executive Officer of PepsiCo International. opportunity Manger of Beijing Pepsi Cola Beverage Co. Ltd. a worldwide scale PepsiCo is one of the key companies operating in the food & What beverage has company sector. driven to the increase investments in China its for the coming years? “During on a China, Vice the speech recent Mr. made journey Mike Chairman and to White, Chief Executive Officer of PepsiCo International, underlined: «Peking, and more generally China, is a key market for the future development of our group». Mr. Mike White also added: «I am firmly convinced that the greatest for which are an investment equal to What role must a supplier What play during this process of SMI company growth? production lines? “Pepsi has been present in “Set up in October 1988, Beijing China for 25 years. Through Pepsi-Cola continuous first filling China to has developments become a highly has driven packaging Pepsi Beverage plant have PepsiCo International – is the involved by by PepsiCo responds Mr. Qi Manager of The sales volume of Pepsi Ming-Jian Beverage in Beijing Pepsi Cola Beverage Co. recent years has recorded Ltd) - To increase the success of an the entire commercial experience Business increase past four than and running that for it times of 9 has the years reached begun (General its Northern been made add to Co, in investments International. to machines successful operation within greater On growth more than 1 billion dollars.” it Above: Mr. Qi Ming-Jian, General of our industry lies in China».” by maintain to PepsiCo its marketing, market shares to establish Cola ever-higher began working offer local regards records. the As beverage quality 20 The bottling plants in 20 model of in the concentrates. food Within industry, Pepsi SK our Pepsi- immediately to be able consumers products first cities in China and a plant Co. and SMI 300 F, the services. was in first to improving packaged in PET. Thanks to the employs close to China 10,000 productive employees, offering indirect in employment to to more opportunities than 1.5 million the and success Peking the plant, ongoing low of It step in Pepsico line installed 2006. owns four dedicated plants China. the to high shrinkwrapper, company represented and approach Beijing beverage industry, Pepsi has opened Inc. singular achieved and thanks performances maintenance machines, products costs working in the SMI supplier, distribution and has ascertained that the Italian service chain. Today, PepsiCo manufacturer China owns more than 40 to companies in the Country, supplier 32 serve of PepsiCo of Chinese has Pepsi as packaging been a China able qualified machines. installation. satisfy the of market: the new requests a increasingly What role does the market partnership with SMI play demanding in the success of Pepsi in and in search of products China? packed in packaging that is qualitatively higher than the “With standard. The new machine consumption the demand for has beverages been the installed existing cans and that the have success Production Manager of Beijing With Pepsi-Cola Beverage Co. Ltd with choices Mr. Joseph Chen; Sales Manager made of Smi China. can Pepsi-Cola Ltd; Beverage PepsiCo Beverages limited; PepsiCo Harbin Co. Ltd; (Shenyang) Beverage (Guangzhou) limited; Beijing PepsiCola Beverage Co. Ltd; Changchun Pepsi-Cola Beverage Hangzhou Co Ltd; Beverage Co. Pepsi-Cola Chengdu Co. Ltd. Ltd; Beverage Pepsi-Cola The example has also been followed by other Pepsi bottling plants. The Olympic 2008 have games created opportunities packaging drinks Beijing has SMI in to industry market. In to automatic casepacker model further develop the within the this Pepsi-Cola decided Peking regard, Beverage purchase an wrap-around WP 600, comments Mr. Xu Wei Xue (Production Manager of Beijing Pepsi Cola Beverage Co. Ltd) – It should also of of SMI guaranteed of this new must be higher be underlined to satisfy qualitative reference of in levels. packaging, an market, SMI, supplier, has film is and the offers excellent possibilities to market the product, as state aggressive shrink economical purchases precedence, safely maintain to able Compared with cardboard more against Co. with support technicians project. Beverage continuously – areas the products supplied together efficient Above: Mr. Xu Wei-Xue, Cola excellent is rise products, China, production lines: Changsha Pepsi- the have the of that in some metropolitan local machines provided by SMI in their of facts on growth quality / price ratio of SMI the China plants have begun to install terms The shown filling improved in format. within for has packaging Consequently, the other PepsiCo line the I that, the image impressed on the printed film is able to increasingly attract competitive attention. In addition to this, as been the consumers’ qualified on SMI SK and WP packaging able machines consumption to the containers and are grouped continuously in maintenance costs at very the format required, by an low electronic grouping system. levels. These results have been reached thanks The to equipped with an automatic reasonable prices, machines are also efficiency of the machines, format extremely simplified format while change electronically controlled by operations and to change the film system, coil the supply of modular spare a parts. In short, these are guarantees a the film this consistent Beijing and and has chosen SMI packaging cutting machines. In 2009 we have technological also unique in the sector, have decided new why motor; is Pepsi-Cola beverage Co. Ltd a reasons brushless unit to purchase shrinkwrapper SK perfect greater to has been installed in a high product speed away filling Sidel to line provided increase production capacities.” our operations. in These innovations, allowed us, as final users, 800 from this company. It by tautness precision make fast format changes with and doing downtimes. This aspect is of extreme importance, as it optimises the efficiency of the entire to production line.” 33 BEIJING PEPSI How important is it for Pepsi that SMI are present in China with local staff? Smigroup in China …available to the customer “From the collaboration we have built over the years, we believe that SMI is In a context of increasingly widespread globalisation, Smigroup has opened numerous branches and truly an excellent partner representation offices in strategic markets to provide – customers with “on-site” support and an increasingly comments Mr. Xu Wei- Xue (Production Manager of efficient service. Beijing Pepsi Cola Beverage The Co. satisfaction has been the key factor which has driven Ltd)- By taking a ongoing commitment to improve customer closer look at the current SMI to open two representation offices in China in the operating large industrial centres of Nanjing and Guangzhou. conditions, we can confirm that the SMI Highly skilled Chinese staff ensures top quality service machines in both sales and technical assistance for installing and reliable. are In extremely fact, for the maintaining SMI installations. investments made in 2009 Competence, for the the filling new line, assessed we all factors for supplier. At high the speed qualities professionalism of by SMI China the Chinese and staff helpfulness which are customers, are greatly carefully appreciated sensitive form the basis of the excellent sales figures reached and which choosing the by Smigroup in this important market. the we Since 1996 SMI has installed almost 400 machines in end decided to purchase an SMI China for secondary packaging and for stretch-blow high-speed moulding PET bottles. of the SK shrinkwrapper series, despite the fact that we had never Hence, to results, ensure a Smigroup service has at recently the height decided to of such increase used one in our production the human resources to be employed in the technical plants assistance activities. before. We confide in the strong points of the For SMI machinery to the process of modernisation of many packaging machines years SMI has contributed with its hi-tech and expect them to offer a bottling plants in China. valid contribution to achieve To maximum overall efficiency over 150 SMI automatic packaging machines, thirty of of the new line, thanks also which are in Asia. date, to the possibility of realising many different formats.” 34 Pepsi-Cola system worldwide has installed