Pepsi Beverages to Remain in Westchester, Keep and Create Jobs, Receives $4 Million State Grant

Pepsi Beverages Company, the bottling division of PepsiCo, will remain in its Somers headquarters, Empire State Development announced today. 

As part of the agreement, Empire State Development will provide PepsiCo with a $4 million grant to invest in the Westchester facility. PepsiCo will invest up to $9 million in the project, retain 907 jobs and create 22 new jobs at the Somers headquarters building, according to a press release. PepsiCo staff and contractors who support the company’s beverage division will be located in the Somers building.

There have been discussions about the company's options since the lease for its current office space in Somers expired at the end of 2010. Pepsi was evaluating whether to relocate from its home in Somers to Danbury, Connecticut.

Under terms of the new lease, Pepsi Beverages will remain headquartered in the 540,000-square-foot, nine-story building located at 1 Pepsi Way through the end of 2015. The agreement also includes an option to extend the lease for an additional five years.

Empire State Development, along with the town of Somers, Westchester County, Pepsi Beverages Company's landlord and public officials have worked to help address PepsiCo’s needs and to keep it in Westchester.

The Somers building has been part of the Pepsi enterprise since 1985. It was previously the headquarters for Pepsi Bottling Group, which was consolidated and acquired by PepsiCo last year. 

"We’re excited to share this news with the local community and the state leaders who worked  to assure us that New York will continue to be a great place to do business," Eric J. Foss,  CEO of Pepsi Beverages Company, said in a statement. "The Pepsi enterprise has had a long and successful history in  New York. We’ve always been proud to play a positive role in the communities in and around Westchester County, and we’re eager to continue doing so in the years ahead."

New York State Senator Greg Ball said the bottler will expand its 1,200-employee operations from the 360,000-square-foot space it now leases in Somers to the entire 540,000-square-foot building.

"Job growth and creation is essential in the Hudson Valley," Ball said. "We must continue to fight against New York's openly hostile business environment and make it easier for companies like PepsiCo to not only stay, but expand right here in the Hudson Valley. The biggest thing government can do to help businesses grow and expand is get out of the way."

Empire State Development President and CEO designate Kenneth Adams said they're pleased that the company will keep its headquarters in Somers.

"Jobs strengthen communities and generate economic growth, which is why we worked with PepsiCo to help secure more than 900 jobs in New York," he said. "Today’s announcement demonstrates our unwavering commitment to encourage economic growth and is evidence that New York remains a top destination for businesses to thrive."

County Executive Robert P. Astorino said Westchester has had a long relationship with Pepsi.

"PepsiCo is not only a major source of jobs for Westchester and New York but a committed neighbor to local communities," he said. Westchester looks forward to strengthening its partnership with Pepsi and its employees and stands ready to offer whatever help it can now and in the future."

PepsiCo has a history of giving back to local communities. As part of the company’s commitment to Performance with Purpose, it has supported United Way and other community-based employee volunteer events. In 2010 alone, Pepsi Beverages engaged more than 400 employees in volunteer activities in support of community organizations including the Muscoot Farm in Katonah, American Red Cross of Westchester County and Camp Combe in Putnam Valley.

Employees at Pepsi Beverages include Amy Patel Daschle, a veteran, and daughter of Yorktown councilman Vishnu Patel. Upon graduating from West Point in 2005, and having served in Iraq and Afghanistan, she works at Pepsi as a brand development and commercialization manager.

Editor's Note: Lisa Willner, Public Affairs Manager at Empire State Development said: "In addition to the 907 [Pepsi Beverages Company] jobs, the Somers office will also house PepsiCo staff and contractors who support the company’s beverage division."