PepsiCo, among the world’s largest food and beverage conglomerates, had a sound 2016 with continued growth in its snacks division and non-carbonated drinks, especially in North America, reports Forbes. Along with growth in Russia, the company derived 8% organic revenue growth in developing and emerging markets in Q3, including a 7% revenue growth in Russia.
Frito-Lay North America remains PepsiCo’s most valuable divisions, accounting for nearly 40% of the company’s valuation as its hold on US market share grows and continues to feed the snacking habit of a nation. In the beverage category, the North America Beverages division performed strongly, in part due to a steady growth of non-carbonated drinks including sports and energy drinks, ready-to-drink tea, and bottled water.
Delivering on its corporate promise of “Performance with Purpose,” PepsiCo recently published a global agenda emphasizing health and social accountability—and innovation is the key going forward.
“I have to innovate the hell out of the company,” CEO Indra Nooyi told Fast Company. “The magnitude of addition that we have to do to the top line just to hold share or gain a little globally is huge.”
Prioritizing its sustainable growth agenda, PepsiCo is focused on three pillars: Products, Planet and People.
While there is a “time and place for the fun-for-you products,” says Nooyi, “we have to make sure that the healthier products, [like] Quaker and Tropicana, taste good and are reasonably priced—because you shouldn’t have to pay more for healthy products—and are ubiquitously available.”
Most recently, PepsiCo used SuperBowl LI to spotlight two zero-calorie products—LIFEWTR and Pepsi Zero Sugar—with a full range of brand activations,
As for protecting our planet, notes Nooyi: “One of the pillars of our environmental sustainability is reducing the water use in our plants and figuring out how to make the whole community water-positive, bringing our technologies in there, passing on technologies to farmers so they can farm and water their crops in a way that is efficient [to help] conserve water.”
As part of its commitment to empowering people globally, PepsiCo is investing $100 million to support women and girls. “Many large companies are bigger than countries,” said Nooyi in Fast Company. “With our market cap, we are the 37th-largest republic in the world. And we have global governance, which many countries don’t, or many regions don’t. I think we have to do our part to bring our heft and the fact that we have global governance to find ways to improve society wherever we are.”
Recently, subsidiary The Quaker Oats Company announced a collaboration during American Heart Month with actress Connie Britton and WomenHeart to inspire women to take control of their health as heart disease is the number one health risk for American women. Quaker celebrates its 140th anniversary in 2017 and throughout February invites people to use hashtag #HeartTalks to drive awareness of heart health and learn more at QuakerOats.com/HeartTalks.