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Pepsi to cease production at beverage plant in Baltimore

DBR Staff Writer Published 11 January 2011

Pepsi Beverages Company (PBC) will stop production at its beverage plant in Baltimore, Maryland, resulting in around 75 job losses in the city. The global food and beverage manufacturer noted that this decision was made partly owing to a controversial new 2-cent beverage tax in Baltimore.

The company's Baltimore plant produces cans and 2-liter bottles of Pepsi-Cola, Diet Pepsi, Mountain Dew and other sodas.

PBC operates in the US, Canada and Mexico and encompasses approximately 75% of PepsiCo's North American beverage volume.

PBC's portfolio includes some of the world's most widely recognized beverage brands, including Pepsi, Mountain Dew, Sierra Mist, Aquafina, Gatorade, SoBe, Lipton, and Amp Energy.

PBC will carry on producing soda in other areas of Maryland. The Baltimore plant will be supplied beverages from the remaining Maryland plants and others in the Mid-Atlantic region for distribution.

The company said that it will continue other functions at the Union Avenue plant in Hampden. The sales and warehouse workers will retain their jobs.

In addition to the 2-cent tax on bottled beverages passed by the City Council last year, the need to streamline operations was another factor in making this decision, said Kristine Hinck, a spokeswoman of PBC.

It is said that the 2-cent beverage tax, which is slated to expire in 21/2 years, is levied only on the distribution of bottled beverages and not manufacturing.