PepsiCo Franchisee to Invest $82 Million in New Abu Dhabi Production Facility
Abu Dhabi Refreshment Company, a PepsiCo franchisee, is investing $82 million in a new facility in the UAE capital to boost local production. The move comes as supply chain disruptions from the Iran war push the company to localize output of Aquafina, Gatorade, Lay’s and Quaker Oats. PepsiCo has worked with UAE officials to prevent grocery shortages or price rises.
SemaforAbu Dhabi Refreshment Company, a PepsiCo franchisee, is spending $82 million on a new production facility in the UAE capital of Abu Dhabi. The investment aims to expand local manufacturing as supply chain issues stemming from the Iran war accelerate efforts to produce more locally in the UAE, Semafor reported. PepsiCo is the maker of Aquafina, Gatorade, Lay’s, and Quaker Oats.
U.S. food and beverage giant has been working with the UAE government to keep grocery shelves stocked without interruption or price increases, Wael Ismail, PepsiCo’s VP of corporate affairs, told Semafor. So far the company has managed it, including through middle-of-the-night calls to officials to release shipments stuck at ports outside its usual routes.
Industry experts have warned that consumers in the region are eventually going to start feeling the pinch even as authorities crack down on price hikes on essential goods, Semafor reported. The article detailing the investment was published on May 11, 2026, at 8:06am EDT.
Key Facts
Story Timeline
2 events- 2026-05-11 08:06 EDT
Semafor publishes report on Abu Dhabi Refreshment Company's $82 million production facility and PepsiCo's localization efforts
1 sourceSemafor - 2026-05-12
Current date; facility investment and related supply chain responses treated as recent developments
1 sourceSemafor
Potential Impact
- 01
Increased local production capacity for PepsiCo brands in the UAE
- 02
Potential mitigation of supply disruptions for Aquafina, Gatorade, Lay’s and Quaker Oats
- 03
Eventual price pressure on consumers despite government efforts to limit hikes
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