MANILA - The local manufacturer of beverage giant Pepsi Co. is planning to spend P2 billion to increase its production of non-carbonated drinks.

Of the amount, P1.5 billion has been allotted for capital expenditures while the remaining P500 million will be used to expand capacities in Mindanao and to launch new non-carbonated beverages.

Pepsi Cola Products Philippines Inc. (PCPPI) President and Chief Executive Officer Micky Yong told reporters that the company is eyeing to boost its production capacity of non-carbonated drinks by as much as 6 million cases.

This, he said, is enough to meet the company's requirements for the next 5 years.

Some of PCPPI's non-carbonated brands include Gatorade, Lipton Iced Tea, Tropicana, Propel, and Sting. On the other hand, the company's softdrink brands include Pepsi, Diet Pepsi, Pepsi Light, Pepsi Max, 7Up, and Mountain Dew.

PCPPI held its annual stockholders' meeting on Wednesday. The company reported a net income of P800 million in its fiscal year ending June 2009, an 8% growth from the previous year.

Net sales, on the other hand, reached P14.2 billion from last year's P12.9 billion.

As a result of the company's strong performance, PCPPI declared dividends at 10 centavos per share and a special bonus dividends at 5 centavos apiece. Yong said PCPPI is likely to perform well this fiscal year on the back of election-related spending.

Share prices of PCPPI closed at P2.16 apiece from P2.18 on Tuesday.