PepsiCo Latin America Innovates and Expands Portfolio
- The company is investing in making a portfolio that is more relevant to the needs of current consumers and, has made important progress against its Performance with Purpose 2025 goals
- Innovation has been key to PepsiCo’s ability to expand its portfolio and has allowed the company to grow its presence in the region.
MIAMI, FL, October 31, 2018 – As consumers in Latin America increasingly demand more nutritious food options, PepsiCo has continued to innovate and expand its portfolio to meet the evolving preferences of consumers towards more nutritious options.
PepsiCo and PepsiCo Latin America are guided by Performance with Purpose (PwP); a pioneering vision launched in 2006 rooted in the fundamental belief that business success is inextricably linked to the sustainability of the world we share. It’s PwP agenda for the coming decade is focused on three core priorities: Helping to improve health and well-being through the products it sells; Protecting our planet; Empowering people around the world.
In terms of product, PepsiCo’s ambition is to enable better nutrition at scale by continuing to develop a broader portfolio of food and beverage choices and increasing access to great-tasting, nutritious options - the company wishes to go where consumers are going and to high growth spaces.
“Consumers globally are increasingly demanding more nutritious food options, and Latin America is no exception. Today, about 27.5% of our global revenue comes from everyday nutrition products (such as oats), zero- and low-calorie beverages, and snacks with low levels of sodium and saturated fats,” said Ricardo Pimenta, VP Nutrition PepsiCo Latin America.
To satisfy these changing consumer preferences, PepsiCo has embarked on an ambitious expansion of its Latin American portfolio of more nutritious foods and beverages through brands like Tropicana, Naked, Kero Coco and Quaker, with the aim of reducing the amount of artificial ingredients and other additives, such as sugars, saturated fats, sodium and calories, in its products.
Some highlights on the company’s progress in Latin America towards its portfolio expansion goals include:
- Saturated fat and sodium reductions in the snacks category: PepsiCo has set a goal of having at least 3/4 of its global foods portfolio volume with less than 1.3 mg sodium/kcal and less than 1.1g sat fat/100kcal by 2025. In Latin America the company has achieved a 32% reduction in saturated fats and a 55% sodium reduction as of 2017.
- For the beverages business, PepsiCo has set a goal to have at least 2/3 of its global beverages portfolio volume with 100 calories or less from added sugars per 12-oz serving. So far, 58% of PepsiCo’s beverages volume contains 100 calories or less.
To help meet these goals, PepsiCo has invested in research and development (R&D) centers in key countries in the region.
These hubs are responsible not only for driving innovation for the company in Latin America, but also contributing to research and development projects that accelerate innovation for PepsiCo in other parts of the world.
PepsiCo’s R&D centers around the globe, including the Tech Innovation Center in Mexico City, the Research and Development Center in Sorocaba, Brazil and the Baking Category Innovation Center in Apodaca, Mexico, have played a critical part in helping the company determine a best path forward to expand existing products – and develop new ones – that meet their customers’ demands for healthier, more nutritious food and beverage options.
In addition to refining its portfolio to better meet consumer needs and preferences, PepsiCo Latin America is also working to benefit the communities where it operates through the company’s 7 million-dollar investment in its “Nutrition for the Future” platform, a hub of programs focused on increasing access to nutritious food and beverages, education for healthy lifestyles and balanced nutrition, and support for agro-economic self-sufficiency.
PepsiCo has already reached 20,000 people in Argentina, Colombia, Chile, the Dominican Republic, Guatemala, Mexico, Uruguay, and Venezuela, with these programs, and expects to reach another 10,000 by 2020.
Combined with PepsiCo Latin America’s approach to introduce more nutritious products at a portfolio level, the company sees “Nutrition for the Future” as being key towards helping them accomplish their long-term goals of making a positive impact in the communities in which they do business.
PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than US $63 billion dollars in net revenue in 2017, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than US $1 billion dollars each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose – our fundamental belief that the success of our company is inextricably linked to the sustainability of the world around us. We believe that continuously improving the products we sell, operating responsibly to protect our planet and empowering people around the world is what enables PepsiCo to run a successful global company that creates long-term value for society and our shareholders. For more information, visit www.pepsico.com.
About PepsiCo Latin America
PepsiCo Latin America is a division that includes all of its beverage, food and snack businesses in Latin America, comprising 34 emerging and developing markets. Our beverage, food and snacks businesses in Latin America include snacks, beverages, cookies & crackers and nutrition categories, which generated US $7.2 billion dollars in net revenue in 2017. Our Beverages business in the region operates through 12 major bottlers.
For more information, contact:
Executive and External Communications Sr. Manager
PepsiCo Latin America