Greek Cypriot factory owners sue PepsiCo and northern firm over use of Famagusta property

Nicosia, Cyprus. Greek Cypriot businessmen have brought a compensation claim reportedly worth around €140 million against PepsiCo, a company operating in northern Cyprus and other defendants, according to Thursday’s reports. The case concerns the alleged unlawful and unauthorised use of their Famagusta factory since 1981.

Claim filed in Nicosia

Daily Politis said it had examined the claim, which CyproFruta and Cyprus Farming Ltd lodged at Nicosia district court several days earlier. The owners of the two Greek Cypriot companies owned the factory, situated in what is now occupied Famagusta.

According to the claim described by the newspaper, Ektam Kibris Ltd has occupied the factory premises and land since 1981 to produce Pepsi-branded drinks, including Mirinda, 7UP, Pepsi Max and Pepsi.

The lawsuit names 12 companies and individuals. They include PepsiCo, whose worldwide headquarters are in New York, United States, along with Pepsi’s Istanbul subsidiary in Turkey and executives from Ektam Kibris and related businesses.

Compensation and earlier notice

The plaintiffs seek €135 million in compensation for being unable to use their business and for profits lost, alongside rent totalling €9 million. The demands cover a period beginning in 1981 and ending on September 30, 2026.

Politis reported that the businessmen’s lawyers sent all 12 defendants a notice in February this year demanding that they stop using the northern factory. The newspaper said the recipients ignored that notice, prompting the court action.

Bottler’s ownership

Ektam Kıbrıs was established in 1981 and holds exclusive rights to bottle and distribute PepsiCo International products in northern Cyprus.

The Erkman family holds a 25 per cent stake. The remaining share was previously held by Tamek Holding AS, a Turkish company controlled by Melih and Gungor Sipahioglu.