Local Pepsi bottler acquires Iraq franchise

$60 million invested in two factories

The Société Moderne Libanaise pour le Commerce (SMLC), manufacturer of Pepsi and other soft drinks and juices, acquired a franchise from PepsiCo to open two factories in Iraq. The facilities are located in Basra and Koufa, and started operating in October 2013. Their products will be distributed in six governorates in southern Iraq.

The total space of the Basra facility reaches 20,000 square meters, while the Kouffa facility reaches 50,000 square meters. The total production capacity of both facilities could reach 100,000 boxes daily. One box is the equivalent of 24 containers of 240 ml each. Walid Assaf, Chairman of SMLC, said: “The factories will not operate at full capacity right away. We a have to acquire a sufficient market share first.”

Total investment in the two factories will reach $60 million.

The factories’ top executives such as the technical, financial, and administrative managers are Lebanese, but middle management and labor will be of Iraqi nationality.

The SMLC has the franchise to produce Pepsi, Mirinda, Seven up, Tropicana, and Lipton Ice Tea. The local factory has an area exceeding 100,000 square meters. The company’s total production in Lebanon reaches 200,000 boxes daily.