Boston, MA 05/28/2014 (wallstreetpr) – The global food and beverage maker PepsiCo, Inc. (NYSE:PEP) and taste technology developer Senomyx Inc. (NASDAQ:SNMX) have refreshed their exclusivity agreement. The two companies seek to develop and bring to the market sweeteners that will change the way manufacturers approach food flavoring.
The latest agreement extends the agreement between the two companies by two more years. The companies had previously entered a four-year agreement that was supposed to end this August. Therefore, following the extension of the agreement, the latest agreement will run through August 2016.
Under the deal
Save for the agreement duration, much is not expected to change in the deal that the two companies already have, as in, PepsiCo, Inc. (NYSE:PEP) will continue to enjoy exclusive usage of Senomyx’s sweet taste technology in non-alcoholic beverages. On its part, Senomyx will continue to enjoy research funding for its flavoring technology. The company also stands to gain some milestone payment on the achievement of certain goals.
In addition to the latest deal extension, PepsiCo, Inc. (NYSE:PEP) and Senomyx entered another agreement in April. The agreement involves the development of a flavoring technology that will help in a reduction of salt in foods.
With consumers around the world becoming increasingly concerned about what they drink or eat, food companies are seeking to tap into the quest for healthy eating with technologies that avoid known flavoring culprits.
Collaboration with Clinton Foundation
PepsiCo, Inc. (NYSE:PEP) is all over the map in recent times. It seems to give Coca-Cola Company (NYSE:KO) a run for its money means being restless. After recently announcing the launch of its version of home-beverage making device, PepsiCo has announced a collaborative arrangement with the Clinton Foundation in India towards what is likely to create a new ingredient supply for the beverage company.
The partnership will support local cashew fruit farmers by giving them almost ready market for their products and better prices. Through the arrangement, PepsiCo, Inc. (NYSE:PEP) will gain important supply for its juice business in India.