PepsiCo and EKTAM Cyprus Face €144 Million Lawsuit

The two companies filed the lawsuit at the Nicosia District Court in the south, claiming that EKTAM Cyprus has been using their factory and land in the Famagusta district to produce Pepsi products since 1981.

According to the newspaper Politis, the plaintiffs are Strovolos-based Cyprofruta Limited and Latsia-based Cyprus Farming Company Limited, which claim to be the legal owners of the factory and land. The lawsuit was filed through the law firm G. Georgiadis & Associates LLC.

According to the plaintiffs, a profitable commercial operation was running before the events of 1974 on property in the Trachonas Limni area of Kouklia, in the Famagusta district. They allege that EKTAM Cyprus Ltd. has been using the factory and land since 1981 to manufacture products under brands including Pepsi, Pepsi Max, 7UP and Mirinda.

INDIVIDUALS LINKED TO EKTAM CYPRUS ALSO NAMED AS DEFENDANTS

The lawsuit names PepsiCo Inc. and its headquarters in New York, along with affiliated companies operating in Turkey and individuals associated with EKTAM Cyprus.

The defendants include Mehmet Melih Sipahioğlu, PepsiCo Inc., Infima Holding, formerly known as Tamek Holding A.Ş., PepsiCo Servis ve Dağıtım Ltd., Fruko Meşrubat San. Ltd., Tamek Sagra Grup Gıda Üretim A.Ş., the Armed Forces Assistance Fund (OYAK), Pergama İçecek A.Ş., Giingor Sipahioğlu, Dr. Şemsi Kazım Erkman, Sibel Erkman and Eda Erkman.

The report states that EKTAM Cyprus, established in 1981, is the exclusive bottler and distributor of PepsiCo International products in the north. It adds that 25% of the company’s shares belong to the Erkman family, while the remainder is owned by Tamek Holding A.Ş., controlled by Melih and Güngor Sipahioğlu.

The plaintiffs are seeking a total of €144.15 million in damages for losses they claim to have suffered as a result of the use of their property.

The claims outlined in the lawsuit are as follows:

• €9.15 million in rent: The plaintiffs are seeking rent for the period from 1981 to September 30, 2026, calculated on the basis of what they describe as a reasonable annual rental value of €200,000.

• €135 million for property use and lost profits: The plaintiffs are seeking compensation for being unable to use their property and for income they claim to have lost from commercial activities. The amount is calculated on the basis of €3 million in annual economic activity over 45 years.

The plaintiffs are also seeking a court order prohibiting the defendants, and anyone acting on their instructions, from continuing or repeating what they describe as unlawful interference with and use of the property.

According to Politis, the plaintiff companies sent formal written notices to the 12 individuals and companies through their lawyers in February 2026. The notices demanded that use of the factory and land cease, that the property be vacated and returned to its legal owners, and that compensation be paid for past use.

The plaintiffs claim that the property continued to be used despite the notices, prompting them to initiate legal proceedings.

The question of how the parties will participate in the court proceedings has also arisen. According to Politis, PepsiCo is expected to appear in court to respond to the allegations, while the course of action to be taken by the Turkish companies remains uncertain.

The report notes that participation by Turkish companies in legal proceedings before the courts of the Republic of Cyprus could have political and legal implications. If they do not appear, the possibility of judgments being issued in their absence and subsequent efforts to enforce compensation claims through European and international judicial channels could arise.

The €144.15 million sought in the lawsuit represents the amount claimed by the plaintiffs. No final court ruling on their claims has been issued.