PepsiCo is continuously expanding its portfolio to provide consumers with products that provide nutritional benefits. While we are improving the nutritional profile of many of our products by reducing added sugars, sodium and saturated fat, we are also building our portfolio of nutritious products, accelerating a journey that we began before the turn of the 21st century.
Over the years, we have built our nutrition portfolio through a combination of acquisitions and new product innovations, while working to make our existing portfolio more nutritious through product reformulations.
Through acquisition, we have added a number of the world’s most trusted and loved positive nutrition brands to our business. In 1998, we began our journey in nutrition by acquiring Tropicana, and in 2001, we merged with the Quaker Oats Company, which also brought the Gatorade business to PepsiCo. In 2007, we acquired Naked Juice Company. In 2010, we acquired Russia’s Wimm-Bill-Dann, the country’s leading branded food and beverage company and leading producer of dairy products. In 2016, we announced an agreement to acquire KeVita, a leading North American maker of fermented probiotic and kombucha beverages, which in 2018 we launched in Europe. In 2018, we acquired Bare Snacks, a US-based maker of baked fruit and vegetable snacks, made from simple ingredients that are baked, not fried; Health Warrior, a US-based company making plant-based products including nutrition bars; and SodaStream, a global manufacturer of sparkling water makers that promotes greater hydration. In 2019, we announced the acquisition of CytoSport, a leading provider of premium protein products, including Muscle Milk.
With this range of brands, we deliver against a broad set of nutritional needs, including products with nutrients like grains, fruits and vegetables, protein, and those that are complementary, like water and unsweetened tea. Over the years, we have innovated to further bolster our portfolio. Our notable innovations over the years span a wide range, from Imag!ne Snacks Yogurt Crisps in the U.S. to Quaker Chia Multi-grain in China, to Alvalle Gazpacho in Europe. Each of these and other PepsiCo product innovations fit local consumer tastes and preferences while providing consumers with nutrition they are looking for.
At the same time, we have improved the nutritional profile of many of our products outside our portfolio of brands that focus on nutrition. We offer a range of more nutritious snacks, such as Baked Lay’s, Sun Chips and Off the Eaten Path snacks, as well as low or no-calorie beverages like Bubly and Pure Leaf Iced Tea Unsweetened.
Our move toward building a portfolio of more nutritious options is in line with the direction of consumers, a movement that shows no signs of slowing. This presents promising growth potential for PepsiCo.
We believe that we have an opportunity to positively influence the diets of people around the world through our nutritious products. With a global rise in urban living and “on-the-go” eating habits, consumers are demanding products that are at once nutritious, convenient, great tasting, and are trusted from quality and food safety perspectives. Developing and delivering products that meet these attributes is a priority for PepsiCo.
While one company alone cannot solve the dual global public health challenges of obesity and undernutrition, we believe we are positioned to contribute to a better future for consumers through our portfolio of positive nutrition products.
PepsiCo Nutrition Criteria
To help provide nutrition guidelines for our beverages and foods products, and diversify our product portfolio in the process, we utilize the PepsiCo Nutrition Criteria (PNC). These science-based criteria are based on dietary and nutrient recommendations from leading global and national nutrition authorities including the World Health Organization (WHO), the U.S. Department of Agriculture (USDA), the National Academy of Medicine, and dietary guidelines from numerous countries.
The PNC sets standards for nutrients to limit, nutrients to encourage and food groups to encourage that are based on the latest science and country specific dietary guidelines.
- Nutrients to Limit are nutrients that have been well-established as dietary factors that can contribute to the risk of certain non-communicable diseases, when consumed in excess. They include: saturated fat, industrially produced trans fat, sodium, and added sugars.
- Nutrients to Encourage are nutrients that have been identified as being commonly under-consumed in the population. They are sometimes called “shortfall nutrients.” They typically include: fiber, specific vitamins and/or minerals such as iron, vitamin A or calcium.
- Food Groups to Encourage are food groups that have been well-established as contributing to well-balanced diets. They include: fruits, vegetables, and whole grains, among others.
These standards are used by our product development teams both to reformulate existing products by improving their nutritional profile, as well as guide the development of new product offerings. To apply the PepsiCo Nutrition Criteria in a relevant way to our portfolio, we have a tiered set of unique criteria for 20 food categories. Products are evaluated based on their nutrient profile as well as dietary consumption patterns to determine which criteria should apply.
Learn more about the PepsiCo Nutrition Criteria here.
With consumers around the world moving toward more nutritious options, we believe that our portfolio of nutritious options is vital to the strength of our business. Our portfolio includes products with food groups like grains, fruits and vegetables, or protein, plus those that are complementary, like water and unsweetened tea.
In Russia, our apple pomace juice product under our J7 brand that has given our business a unique advantage in the category. Pomace is the edible part of fruits that is rich in fiber but is not typically used in mainstream juices. The addition of pomace to the fruit juice is a unique way to narrow the nutritional gap between drinking fruit juice and eating the fruit. The Russian apple pomace product, produced via a process patented by PepsiCo, gives consumers the same amount of fiber per serving as a whole apple. Beyond the nutritional and taste advantages, apple pomace also reduces food waste by using more parts of the apple in the product itself.
In the UK, our Tropicana Whole Fruit products, available in orange and apple, were designed to help consumers meet their daily nutritional intake of fiber. Containing 50 percent more fiber than traditional juice and smoothies, Tropicana Whole Fruit makes more of the whole fruit drinkable, providing nutritional benefits to UK consumers, most of whom do not consume recommended daily quantities of fruit and fiber.
In the US, we launched a new line of snacks in 2018 called Imag!ne geared towards families, that provide good sources of nutrients like protein or calcium. Imag!ne Yogurt Crisps contain four grams of protein and eight grams of whole grains per serving, while Imag!ne Cheese Stars contain six grains of protein per serving. Both products contain no artificial colors or flavors.
Meeting Societal Nutritional Needs
In markets all over the world, we work to create products that are suited to local needs in terms of both taste and nutrition, with brands that consumers trust.
For example, in Mexico, a key part of our nutrition business is the Quaker 3 Minutos whole grains oat-based platform, fortified with 7 vitamins and minerals. The product has low levels of nutrients to limit, with 0g of added sugars, 0.01mg/kcal of sodium, and only 0.28g/100kcal of saturated fat. 3 Minutos includes 10 percent of the daily recommended value of calcium and 11 percent of the daily recommended value of Vitamin A, both considered shortfall nutrients in the country. For the underserved population purchasing Quaker 3 Minutos - those who are considered to be at or below the poverty line - the price point of 10 pesos falls within the most affordable set of food products (20 pesos or less) for this population. While Quaker 3 Minutos is sold to a broad population, approximately 34 percent of its volume is sold to consumers in Mexico’s bottom three socioeconomic levels as determined by the country’s National Council for the Evaluation of Social Development Policy (CONEVAL).
In India, through a joint venture between PepsiCo and Tata called NourishCo, we sell products such as Tata Water Plus, fortified with bio-available copper and zinc, as well as Tata Gluco Plus, which serves as a source of iron, and glucose to provide energy.
In our Russia business, we sell dairy products such as milk, kefir, and yogurt, as well as purees and juices to the city of Moscow, which distributes these nutritious products to more than 200 infant-feeding centers. These products are then made available to citizens of Moscow, free of charge, to feed children 0-3 years of age, giving all children in the city the opportunity to receive good nutrition, regardless of background.
Meeting Nutritional Needs Through the PepsiCo Foundation
The PepsiCo Foundation is another vehicle for providing nutritious servings to the underserved. Through grants to and collaborative partnerships with selected nonprofit organizations, the PepsiCo Foundation and its partners provide nutritious servings to communities across the globe.
Our signature nutrition operation is Food for Good. In the US, approximately 13 million children struggle with hunger, a challenge that inspired a group of PepsiCo employees in 2009 to create a program that would make a positive impact on this issue, which they called Food for Good. Over the years, the program has grown from providing summer meals in Dallas, Texas for children eligible for free or reduced-price lunch during the school year, to a year-round operation offering nutritious, pre-packed meals to underserved children in 19 U.S. cities, a number that is expected to expand in the coming years. In partnership with local nonprofit organizations and government agencies, the program delivers meals that all meet or exceed USDA standards, and include fresh fruits and vegetables, whole grains, low-fat milk and high-quality snacks. In doing so, Food for Good leveraged PepsiCo’s strength in distribution and logistics in order to successfully deliver nutritious meals to children who needed them the most.
Since 2015, Food for Good has delivered more than 80 million nutritious servings to children across the country, and in the process, created 150 jobs to support the program. In 2018, Food for Good delivered approximately 29 million nutritious servings to underserved U.S. children.
In 2018, Food for Good expanded into three new locations in the U.S. – Alaska; Galesburg, IL and Bradenton, FL – and is exploring the potential for international expansion. In addition, in response to Hurricanes Michael and Florence in 2018, Food for Good worked with affected communities and local partners to provide nearly 500,000 meals to victims of the storms.
Beyond the U.S., the PepsiCo Foundation is partnering with highly respected organizations to address food security in markets around the world. For example, working with Global Foodbanking Network we are boosting food security and fighting hunger by providing access to at least 20 million nutritious servings of food-with emphasis on fresh fruits and vegetables-in Argentina, Colombia, Guatemala, Peru, the Dominican Republic and South Africa by the end of 2018 by building local food bank capacity and providing needed resources like trucks and refrigeration. In India, our strategic partnership with Akshaya Patra will support 35,000 school children in two cities in the state of Gujarat in receiving school meals for a full year, which is expected to boost school attendance and enrollment, notably for girls.