Plotting Healthy Growth: Pepsico

In an exclusive interview, PepsiCo’s AMENA CEO Sanjeev Chadha elaborates on the F&B conglomerate’s improved focus on healthy products and why he is bullish about the GCC region despite economic uncertainty.

- Aarti Nagraj

Healthy is not a word you typically associate with PepsiCo – the multinational conglomerate whose $22bn brands include Pepsi, Lay’s chips and Cheetos. But that’s a perception that the company is working hard to change.

The food and beverage company has expanded its portfolio to include a range of healthy products through brands such as Quaker, Tropicana and Gatorade.

Revealing its 10-year strategy late last year, the company publicly stated ambitious goals. By 2025, sales growth of what it refers to as ‘everyday nutrition’ products will outpace sales growth in the balance of PepsiCo's portfolio. ‘Everyday nutrition’ products include those that contain whole grains, fruits and vegetables, dairy, protein and hydration.

Implementation of the strategy is already underway and is rapidly picking up pace in the Middle East and Africa, asserts Sanjeev Chadha, CEO for Asia, Middle East and North Africa (AMENA) at PepsiCo.

Across the wide region he oversees, Chadha says the company is observing greater interest in wholesome products and a move towards healthier lifestyles.

“But the fact is that while consumers want to eat and drink healthy, they often find it difficult to walk the talk,” he argues.

Hence PepsiCo is integrating healthy products such as oats into a wide range of items including biscuits and pasta. The company is also creating new lines to suit local tastes – such as Quaker Oats Upma and Poha in India (set to be introduced in the GCC as well) and Oats Conjee in China.

“In the GCC, Quaker Oats has always been used as a soup thickener, especially during Ramadan for Iftar. So we have created Quaker Oats soups for this market. They have been in the market for a year and a half, and they have been doing outstandingly well,” states Chadha.