Fri, Dec 10, 2010 - Page 10 News List

Chinese soft drinks maker wins suit against PepsiCo

AFP, BEIJING

A Chinese soft drinks maker has won a lawsuit against the local unit of PepsiCo over claims it had illegally used its recipes and business secrets, Chinese state media said yesterday.

A court on Friday last week ordered PepsiCo China Investment Co to stop selling Tianfu Cola and to return the recipe to the Chinese company, the Shanghai Daily said.

However, the court in the southwestern mega-city of Chongqing rejected Tianfu’s demand for 1 million yuan (US$150,000) in compensation from its former joint venture partner, the report said. Tianfu (天府) and PepsiCo formed a tie-up — Chongqing Pepsi-Tianfu Beverage Co (重慶百事天府飲料) — in 1994 to make soft drinks under the names of both companies, the report said.

However, Tianfu sold its 40 percent stake in the joint venture to PepsiCo in 2006 for 130 million yuan because it was losing money. The Chinese company launched its action in October last year.

PepsiCo, the maker of Pepsi soft drinks, was not immediately available for comment.

Tianfu general manager Qian Huang (錢黃) was quoted by the Global Times saying he planned to take further legal action against PepsiCo seeking “trademark loyalties and compensation for the devalued Tianfu trademark.”

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