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PEPSICO SPLITS UP BEVERAGE AND RESTAURANT BUSINESSES

U.S.-based Pepsico Inc. is spinning off its restaurant business to shareholders because its performance is holding back its soft drink and snack food operations. The move will make one of the biggest restaurant companies in the U.S. The restaurant chains owned by Pepsico are: Taco Bell, Kentucky Fried Chicken and Pizza Hut. Combined, the three chains have 29,000 restaurants worldwide. In Canada, advertising for Taco Bell is done by Bozell Palmer Bonner of Toronto. Canadian Pizza Hut ads are created by BBDO Canada of Toronto and ads for Kentucky Fried Chicken are done by Ogilvy & Mather of Toronto. Pepsico will likely sign long-term agreements with the fast-food chains to serve Pepsi-Cola drinks.

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