From ice making to ice tea

By: trademagazin Date: 2007. 03. 28. 08:00

FÁÜ began production of Pepsi Cola in 1970. They no longer have sales reps travelling by tram, but other changes have also taken place since PepsiCo became the owner. The history of Fővárosi Ásványvíz- és Üdítőipari ZRt. had begun with ice and soda water production following nationalisation. The production of soft drinks begun in 1954, with brands like Bambi or Utas. In 1969, with the new economic mechanism came Pepsi Cola, which signed a franchise agreement with FÁJIV (predecessor of FÁÜ) for the distribution of Pepsi. FÁJIV began production of Pepsi in 1970. FÁJIV had a field sales team since1968, with sales reps using trams to get to clients.
When Pepsi Co. became the majority shareholder in FÁÜ Rt. in 1993, major changes were required in corporate culture and mentality. Several major investments were completed, bottling lines were purchased and their assortment was expanded to include brands like Schweppes, Mirinda, Canada Dry 7Up, and the sales system was also modernised. The amount invested by Pepsi totalled several hundred million dollars by 1995 – remembers Géza Miklósvári, general manager of FÁÜ Rt. In the past ten years, PepsiCo has become the fourth largest company in the food industry world-wide, achieving more revenues than its greatest rival Coca-Cola. All carbonated soft drinks of FÁÜ are made in the Soroksár plant.
Promotion of brands takes place according to guidelines defined by the mother company, but relies greatly on local creativity and initiatives. Regarding marketing, roles are clearly defined. Pepsi image is focused on music and football, with international stars, but local starts can also be used for local campaigns. Their relationship with retailers is correct. – We are not planning to implement major changes in our domestic market strategy –says Dr. Géza Miklósvári. – We have made the required adjustments to follow market changes.

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