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Pepsi has set up its first research center outside the United States aiming to develop food and beverages to accommodate the tastes of Chinese consumers.

"Every market demands its own flavor of food and beverages. We will put more such products on the Chinese market this year," said Luo Enyu, head of the research center, which will be based in Shanghai.

Researchers will come from all over China to develop products for different parts of the country, Luo added.