Wooing the Next Pepski Generation;Frito-Lay builds factory in Azov

The Russian city of Azov isn't the kind of place most foreigners would think of plunking down $170 million. Located in Russia's deep south, the town has a population of just 80,000 and lies far from the country's big consumer markets, Moscow and St. Petersburg. But the area around Azov has one thing in abundance: potatoes. And that's something at least one investor, PepsiCo, is looking for. On Oct. 13, Pepsi began building a potato chip factory in Azov, the largest foreign investment the region has ever seen. "Russia is on the road to steady growth,"says PepsiCo Chief Executive Indra Nooyi. "We're very bullish."