PepsiCo (PEP) has announced a plan to market mobile phones and accessories in China. The beverage giant will not be manufacturing the products but will work with an un-named licensing partner on the project over the next few months. According to the latest reports the mid range smartphone will be called Pepsi P1 and will be powered by Google’s (GOOG) Android operating system. The phone is expected to retail for around $205 and will be branded with the Pepsi logo. It’s a new kind of marketing for the soft drinks and snack food company, which has been working to diversify its offering. A Pepsi spokesperson confirmed the product would only be available in China, announcing that ‘Pepsi has no plans to get into the mobile phone manufacturing business, but we are committed to engaging with consumers in innovative ways to grow our brand.’ The company representative added that: ‘Pepsi has always moved at the speed of culture, and today technology is a key cultural pillar at the heart of consumer interaction.’ The smartphone deal is similar to other licensing agreements Pepsi has forged across other product categories in the past. The fizzy drinks maker partnered with Danish TV maker Bang & Olufsen last year and also worked on a soccer campaign with shoemaker Del Toro. PepsiCo is now looking to cash in on China’s appetite for cheap smartphones and expand its brand recognition there. Tech site Mobipicker first reported the smart phone is expected to make its debut in Beijing on October 20. The news comes following reports that Pepsi is also in talks with Coca Cola (KO) to invest in Greek yogurt maker Chobani. The deal could push Chobani’s value up to $3 billion and will allow the company to expand its manufacturing base and supply chain. TheStreet’s Amelia Martyn-Hemphill reports from New York.
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