As a consumer-focused company, we want to enrich the lifestyles of our consumers while increasing the local relevance of the products we make. We recognize the need to understand and respect local cultures, rituals, patterns and intake gaps when developing delicious-tasting convenient and affordable products for consumers in that market. For example, in India, we have introduced a whole-grain product for breaking the fast around the observance of Ramadan. In China, we have introduced congee (with whole grains and reduced sodium) as a locally relevant breakfast offering to add nutritional value to the Chinese diet, and we're introducing products made from grains in sub-Saharan Africa as a change from those made with plain flour.
Examples of products adapted to local tastes include:
All PepsiCo divisions conduct regular, qualitative and quantitative consumer research to understand the needs of people in the markets where we operate. Consumer insights are translated into innovative new product improvements, new product ideas and marketing initiatives. We leverage third-party benchmarking tools from the U.S.'s Kantar Retail surveys and globally through the Advantage Group International survey.
Additionally, PepsiCo has created Centers of Excellence (COEs) to ensure a high quality of customer service. One of our most active COEs is focused on customer insights, helping to quantify and provide innovative solutions for our customers' most challenging issues, including consumer shopping habits, macro consumption trends and retailer competitive dynamics.
PepsiCo also has a COE dedicated to customer supply chain and logistics, and focused on "Go-To-Market" capabilities. It addresses customer supply issues and enables rapid resolution of problems and a more flexible and adaptive supply chain for individual retail customers.
In Kantar Retail's 2010 surveys, PepsiCo ranked among the top two food service suppliers in the U.S. and ranked number four among retail customers. We delivered year-over-year improvements in the areas of supply chain management and customer sales teams. Where we have dedicated PepsiCo "Power of One" retail customer teams, we ranked number three overall and number one for insights.
Internationally, we had strong results in the Advantage Group International's Advantage Report in a number of countries. In the U.K., Walkers was ranked number two for overall performance among 16 confectionery and snack food companies. Tropicana, in the U.K., was ranked number one out of 13 companies in the refrigerated dairy and juice category. In Canada, Frito-Lay was ranked number three among a total of 23 fast-moving consumer goods companies in the grocery channel.
Across PepsiCo's global portfolio, we have made a significant reduction in average sodium levels—all while maintaining great taste in our products. This progress will be accelerated over the coming years in order to achieve our reduction commitment.
Thanks to aggressive efforts in North America, Europe and Latin America to make significant reductions in some of our popular, high-volume snack products, as well as the company's advances in developing new salt crystal technology—which maintains the salt flavor that consumers like but with less sodium actually used—we believe we are on track to meet this reduction target.
Examples of our progress include:
Our effort to reduce the amount of added sugar in our products has been steady in recent years in a challenging environment. Despite strong consumer taste preferences for sugar and complex regulatory processes for alternatives, we have made progress toward achieving our initiatives.
There have been some considerable successes. Pepsi Max, for example, is the company's 19th billion-dollar mega-brand and is the fastest-growing beverage internationally with a "no sugar" label. Pepsi Max, containing no sugar but with a full flavor, is our fastest-growing brand internationally since 2008, with significant product launches across the Middle East and China in 2010. Pepsi ONE, with only one calorie, is another successful brand; Pepsi Next, with 60 percent less sugar, will launch in test markets in the U.S. in late 2011; and through our continued R&D investment we will develop additional lower-calorie products.
In the U.S., we have further expanded the successful SoBe Lifewater, a vitamin-enhanced water with a high level of antioxidant vitamins, to now offer 11 different flavors with all-natural, zero-calorie sweetener.
Tropicana's Trop50, the juice industry's most successful launch in recent years, offers 50 percent less sugar and calories by using a zero-calorie, all-natural sweetener.
Our all-natural sweetener innovation is also being used in Gatorade, the number-one sports drink brand in the U.S., to produce G2 Gatorade. With only 20 calories per eight-ounce serving, G2 delivers the same electrolytes as Gatorade to help maintain hydration.
In Turkey, a leading beverage, Fruko Gazoz, has been reformulated with a sweetener blend that reduces added sugar content by 33 percent. And in Brazil, we introduced coconut water that is low in sugar, while increasing the bottled water offerings there and in Mexico, which provide more options for people to manage their sugar and calorie intake.
Looking longer term, we expect to continue to invest in sweetener technologies that will help us deliver products with fewer calories while preserving the great taste consumers expect.
While we expect to continue to make progress in reducing added sugars and calories in our portfolio, plenty of consumers still demand full-sugar options, which we are, and have always been, happy to meet. The challenge is to encourage moderation, which we try to address in a variety of ways, including nutrition education programs with partners, marketing initiatives and packaging information.
After a major undertaking to eliminate nearly all trans fats from our U.S. product portfolio and many of our global products, we are now committed to reducing the saturated fat content of our key global food brands.
Since all regions and countries offer different dietary approaches and agricultural conditions, we expect to continue to make progress with partnerships to develop local crops and innovative solutions meeting local tastes that will help us reduce saturated fat levels in our products.
In India, for example, the switch to rice bran oil from palm oil on such leading products as Lay's potato chips and Kurkure namkeen, a traditional Indian afternoon tea snack, has reduced saturated fat levels by an average of almost 40 percent across the portfolio.
In China, increased sales of our Quaker products have helped drive a 10 percent decrease in saturated fat per serving across our foods portfolio. And in Russia, saturated fat levels have been reduced by almost 13 percent since 2006 through the introduction of lower-saturated-fat versions of Cheetos and the more than 300 percent growth of low-saturated-fat Hrusteam products.
In 2010, we also launched versions of Cheetos and Fandangos in Brazil, made with heart-healthier sunflower oil.
As part of our continuing relationship with the Inter-American Development Bank (IDB), in early 2011 PepsiCo and IDB announced a landmark partnership to spur social and economic growth in 26 countries across Latin America and the Caribbean. The partnership's inaugural project was launched in Mexico with an agriculture initiative that will significantly expand commercial sunflower production—a once-thriving commercial crop that has diminished in recent years—while providing loans and a source of income for some 850 Mexican farmers and their families. PepsiCo established supply with approximately 90 farmers, increasing production from 45 tons in 2009 to 180 tons in 2010. For PepsiCo, the sunflowers provide a source of heart-healthy HOSO for cooking potato chips, biscuits, nuts and other snacks that PepsiCo produces in Mexico.
This initiative to develop the Mexican sunflower market is a powerful example of how we can bring together the resources of public and private sectors to deliver real value for local communities, for our consumers and for our business.
As part of the sunflower production program, PepsiCo will purchase 100 percent of the crop, for an estimated $52 million over seven years. Additionally, PepsiCo will invest $2.6 million to support management of the Mexican sunflower crop and will provide technical training to the small farmers.
We've made great strides in increasing the amount of wholesome foods across our global portfolio. To coordinate our activity, in 2010 we formed our Global Nutrition Group, to help accelerate the growth of our nutrition business, from $10 billion in net revenue in 2010 to $30 billion by 2020.
In 2010, the U.S. forecasted that the Quaker division would contribute nearly 500 million pounds of whole grains to the American diet. In Russia, with the acquisition of Lebedyansky, we became the number-one juice company across Europe in 2009 and expect to have sold 230 million servings of 100 percent juice in Russia in 2010. The acquisition of Wimm-Bill-Dann Foods in Russia, completed in 2011, also provides PepsiCo with a large dairy portfolio on which to build. And Sabritas delivered more than 19 million pounds of nuts and seeds to Mexican consumers through its varied nuts and seeds product portfolio.
In 2010, PepsiCo Greater China Foods introduced a range of delicious and wholesome Quaker congees, with whole grain oats and local ingredients like red dates and wolfberry. Unique innovations such as Iced Lemon Tea and Little Tomato have also proved to have wide market appeal in China. And in the U.K., Tropicana smoothies deliver the equivalent of two portions of fruit per serving, providing an extra opportunity for consumers to vary their intake of fruit and vegetables.
In Canada, a comprehensive portfolio transformation is under way, coordinated by a multidisciplinary team, to meet the Canadian consumer's desire for whole grains. More than 25 products are being transformed across the three flagship categories—Quaker Instant Oatmeal, Quaker Chewy Bars and Quaker Crispy Minis lite snacks.
The team succeeded in adding meaningful amounts of whole grain while reducing sodium and added sugar. By end of 2011, in Quaker Chewy Bars, the amount of whole grains will increase by 43 percent, while added sugars will be reduced by 14 percent and sodium by 24 percent. And in consumer testing, each product beat or delivered equitable results in taste, and the response in the marketplace has been enthusiastic.
In 2010, we continued to provide consumers with options to manage calorie intake, from launching new zero- and low-calorie products to reformulating existing products with fewer calories.
Naked Juice, for example, introduced two 100 percent juice smoothies that have 35 percent fewer calories than regular Naked Juice smoothies, and Tropicana added new flavors—such as Pomegranate Blueberry, Pineapple Mango and Farmstand Apple—to its Trop50 line, which offers 50 percent less sugar and fewer calories with no artificial sweeteners. In 2010, Trop50 supported these new juices in a new breakthrough advertising campaign that encouraged consumers to reappraise the chilled juice category.
We are also using an all-natural sweetener innovation in Gatorade, the number-one sports drink brand in the U.S., to produce G2 Gatorade, which delivers the same electrolytes as Gatorade to help maintain hydration, but with only 20 calories per eight-ounce serving.
On the foods side, we utilized our expertise in baking and air-popping technologies to manage calories. In Mexico, a baking technique is used to produce a version of Sabritas potato chips that has 20 percent fewer calories. Several of our products, including SunChips, Sabra, Quaker's Quakes and True Delights rice snacks, were recognized in the U.S. on Good Housekeeping's "Best Low-Calorie Snack" list.
And across our portfolio, we offer consumers portion-control packs for many of our snacks, which are sized by calories, instead of weight, as we continue to work with government agencies, industry groups and NGOs around the world to promote healthier options for consumers, including creative incentives for consumers to make healthier choices.
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