?Despite the ban lift, PepsiCo yet to resume operations in Tirunelveli plant

After announcing its plans to invest in capacity building and introduction of new categories, Food and beverages major Pepsico has set all hopes on India to ramp up the growth of its AMENA (Asia, Middle East and North Africa) region, said a top official.

Besides, Pepsico would also continue to work with marketplaces and its backward integration with the farmers on the ground to enhance its reach, he added.

The company is adopting the strategy to cater to consumer interests at different price points with its region specific offers by expanding portfolio.

"We want to be an engine of growth for AMENA (Asia, Middle East and North Africa) region and I believe that we have right to be (that)," PepsiCo India Region President and CEO Ahmed El Sheikh told.

The company has a target to double its turnover in the next seven to eight years in view of its India growth.

"The size of opportunity which we have here, this for us means that we need to double our business," Sheikh added.

On being asked about the timeframe to achieve this target, he said it could be in "7 to 8 years"."The aim is that we would continue to grow in double digits...," Sheikh added.

Presently, India is among top ten global markets globally. It is a part of AMENA region, which is one of the six zones of PepsiCo globally and had contributed 10 per cent of the total global net revenue.

The company is investing in expanding capacity, new categories, into marketplaces and focusing on their backward integration like cold infrastructures for products as potatoes at a regional level.

Backward integration refers to the process in which a company purchases or internally produces segments of its supply chain.

Besides, Pepsico "would promote small offerings in certain categories in certain channels which are modern trade and e-commerce" as per its strategy.

"The company would have the strategy which appeals to the different consumer groups and regions. This is what we are focusing right now to capture the growth," he added.

The company is witnessing a faster growth in hydration and juices here in comparison to its range of fizz based soft drinks.

"Carbonated soft drinks are also growing but lesser than the growth of juice," he added.

The company would also reduce fat, sodium, and sugar in its products by transforming its portfolio.

Currently, beverages and food items contribute equally in Pepsico's portfolio; however, it expects latter to grow slightly ahead of former in coming years.

In 2013, PepsiCo had announced to invest Rs 33,000 crore in India by 2020 to more than double the capacity of the business here.

The iconic American beverage maker PepsiCo’s has posted sales and earnings beating analysts’ estimates in the first quarter, buoyed by increased volumes of Frito-Lay chips as the drinks business continued to struggle.

PepsiCo, like rival Coca-Cola, has focused on introducing new, innovative drinks and products. But it was food brands that drove gains in the quarter.

The beverage-maker had previously said it had shifted its spending too far in the direction of upstarts and away from its biggest names, so it has since refocused attention on its most recognizable labels.

Core earnings were 96 cents a share in the latest quarter, beating the 93 cents that analysts were expecting. Revenue was $12.6 billion, compared with a forecast $12.4 billion. The results are a promising sign, although the North America beverage division is still beset as consumer tastes shift away from colas.

Consumption of carbonated soft drinks fell to a 31-year low in the US in 2016, according to Beverage-Digest, a trade publication. PepsiCo has relied instead on growth in its snack business. Health conscious consumers who have moved away from sugar-laden sodas haven’t made the same moves away from chips.

PepsiCo has also introduced organic and better-for-you versions of some of its biggest snack brands. Growth in the Frito-Lay division helped boost sales in the quarter. The maker of Mountain Dew and Cheetos also benefited from cost cuts as chief executive officer Indra Nooyi continues pursuing at least $1 billion in annual savings.

PepsiCo India’s flagship snack brand Kurkure has planned to launch a Multigrain variant of Kurkure with Power-Grain Ragi, catering to the rising trend of consumers looking for tasty yet healthy everyday snacking options.

Kurkure Multigrain with Power grain Ragi has been formulated with 21.5 % less sodium with the richness of calcium, fiber and is a good source of protein. The new formulation of snake brand is in line with PepsiCo’s global sustainability agenda of Performance with Purpose

“Kurkure is India’s most loved snack brand which has been innovating and transforming to cater to changing consumer needs. As per our Performance with Purpose agenda, we are working to improve our snack products through a stepwise reduction approach. In India, we have been successful in reducing 21 metric tonnes of sodium from our entire snack portfolio till last year and aim to reduce sodium in 75% of our food’s portfolio by 2025. The recently launched Kurkure Multigrain with 21.5% less sodium is yet another step towards the actualization of this journey,” said Jagrut Kotecha, V.P Indian Snacks, PepsiCo India.

The new Kurkure Multigrain will be available in the winning flavor Curry & Herbs at 3 price points (Rs. 5, 10 and 20) distributed across India through traditional trade and modern trade channels.

PepsiCo India has revamped the packaging of their flagship brand Kurkure across its entire range of 40 variants with an aim to engage consumers at the point of purchase. Research has shown that a consumer generally takes less than 7 seconds to make a purchase decision when buying a snack and the first thing he/she notices is the colour followed by the shape, brand name and finally the key ingredients that go into making the product.

This consumer psychology was combined with design thinking to develop an entirely new design philosophy for the brand. The new packaging range stands out thereby re-appraising Kurkure as a lead player in the Salty Snack category.

The new packaging strongly reiterates Kurkure’s Kitchen ingredients story and noticeably sets apart one flavor from the other. The new packaging effectively displays product format on each pack, making it easier to distinctly understand the offering of each variant and distinguish it from other me-too brands. The new packaging design has been developed over the past 12 months by PepsiCo’s global design group, headed by designer Mauro Porcini along with an external agency and has been rolled out nationally.

Varun Beverages is confirmed to have acquired PepsiCo India's previously franchised sub-territory in Jharkhand along with a manufacturing facility.

In a BSE filing, it said, "The company has concluded the acquisition of PepsiCo India's previously franchised sub-territory in Jharkhand along with one manufacturing unit at Jamshedpur.”

PepsiCo India's bottling partner Varun Beverages is now a franchisee for PepsiCo products across 21 states and 2 Union Territories.

Shares of Varun Beverages were trading 0.68 per cent lower at Rs 605 a piece on BSE.

Under pressure from small regional beverage players that have been snapping at the heels of large MNCs, PepsiCo India has lined up around seven new fizzy drinks under its Slice brand to lure consumers.

The company is introducing new ethnic favourites like guava chili and jeera to push sales apart from mainstream flavours such as lemon and orange.

A spokesperson for PepsiCo India said the variants will have 11% juice and will be sold in smaller serves of 250ml at an affordable price point.

As per the industry experts, while sugary carbonated drinks attract GST of 40%, companies pay around 12% GST on juices. PepsiCo’s new drinks are slated to fall into the latter category.

A spokesperson said, “The new range of locally relevant, fruit juice drink with fizz under brand Slice will be available as a pilot in select markets to start with. Rural and rest of urban (RoU) segments are currently 60% of the juice category and have been growing faster than metros. By riding on both company and franchise go-to-market sales and distribution infrastructure, we want to dial up growth and market access for our juice products in these key rural, RoU markets.”

Over the last few years, the Rs.14,000-crore carbonated soft drink industry in India has faced flak from consumers, who suddenly had a plethora of healthier options, such as dairy products or juices from local players to choose from.

Akhil Gupta, MD of New Delhi-based Fresca Juices said, “We introduced juices in all possible pack sizes, from 160ml and 300ml to one-litre and even two-litre economy packs. Starting with just one litchi flavour, Fresca has currently introduced new flavours, including orange mojito and tomato.”

Prices of carbonated drinks also witnessed an upward trend with the government increasing sin tax. To add to the woes of biggies, small regional players cropped up, launching 250ml PET bottles at Rs 10, which often mimicked variants from the larger players. As a result, sales growth of the industry remained stagnant.

CEO of a Gurgaon-based beverage company said, “PepsiCo’s new offensive will be watched carefully by beverage companies, as many said blending fizz and fruit is a tricky job. Parle Agro’s Fruity Fizz didn’t work in the Indian market.”

Ravi Jaipuria, the endorser of RJ Corp, is keen to acquire PepsiCo’s bottling operations in India that his group doesn’t already own.

Jaipuria, promoter of the $1.6-billion diversified RJ Corp replied when asked about the national interest in bottling rights of Cola Company, “Whether PepsiCo wants to give us more is a call they have to take. We are keen. But it depends on themterested in acquiring the bottling rights of the cola company nationally. RJ Corp is PepsiCo’s second-biggest bottler globally.

He said, PepsiCo contributes close to half of the group’s business now. RJ Corp owns the bottling business of PepsiCo in north and east India through listed entity Varun Beverages, which acquired bottling franchises in five more states over the past three-four months.

A top official directly involved with PepsiCo said opinion is divided internally on whether the entire bottling operations should be managed by one franchisee or split between different companies.

Last month, PepsiCo said it was handing over the distribution of some products in northern and eastern India to RJ Corp.

Jaipuria said, “PepsiCo has already transferred distribution of Tropicana, Gatorade and Quaker Oats. So obviously they have faith in us — that’s why they are transferring more and more business to us. What we’ve got in the five states is 320 million people. But we have to first consolidate that.”

For aerated drinks, RJ Corp manages the franchisee for PepsiCo products across 20 states and two Union Territories, besides overseas markets such as Sri Lanka, Mozambique, Zambia and Morocco.

In October that PepsiCo is looking to divest its bottling, sales and distribution operations to franchisees in the south and west, the two regions where it bottles soft drinks on its own, to focus on foods. PepsiCo owns nine manufacturing facilities in the south and west.

A majority of PepsiCo’s bottling is run by franchisee partners in the US and Europe, with companies increasingly opting to be asset-light.

Jaipuria, whose association with PepsiCo spans over two decades, said the soft drinks category, which went through a rough patch over the past couple of years, is now looking positive.

“After the rollout of the goods & services tax last year, it’s been positive. Ultimately, consumers are not going to stop drinking beverages. The question is what will they drink? PepsiCo is getting into flavoured water, juice variants. You can’t ignore if people are conscious about wanting less sugar or other products. Companies are already making those changes,” he said.

PepsiCo, which makes Pepsi cola, Mountain Dew lemon drink, Kurkure snacks and Quaker oats, sold the India bottling operations of its fizzy drinks in the north and east to Jaipuria three years ago. RJ Corp’s businesses also include restaurants and dairy besides soft drinks.

RJ Corp is also handling the franchise for Pizza Hut, KFC and Costa Coffee. Group Company Devyani International has inked a franchise deal for Singapore-based luxury tea brand TWG in India and the UK. RJ Corp also sells Cream Bell ice-creams and runs grocery retail chain JMart. The company has other interests like healthcare and education.

After parted away with cricketer Virat kohli, PepsiCo senior Vice President said “PepsiCo will increasingly rope in sources of authority for endorsing its brands instead of opting only for celebrities. The cola firm will consider individuals who have established their credentials in specific fields and have direct synergies with brands they endorse. . The beverages and snacks maker has now roped in javelin throw athlete and junior world record holder Neeraj Chopra for its sports drinks Gatorade. Other recent endorsement deals with such sources of authority include badminton player PV Sindhu also for Gatorade and Chef Vikas Khanna for oats brand Quaker. We will continue to consider celebrities, but that will no longer be the only criteria for our endorsement deals. Increasingly, PepsiCo will be less about celebrities and more about sources of authority, across the portfolio.”

Traditionally known to be among the heaviest spenders on celebrity advertising, the company has had some of the biggest names across cricket and films such as cricketers MS Dhoni and Kohli, and actors Ranbir Kapoor, Hrithik Roshan and Anushka Sharma as faces of the brands. While Dhoni and Kohli are no longer associated with Pepsi, Hrithik Roshan endorses Mountain Dew while Anushka Sharma is the face of Nimbooz masala soda.

Talking about Aquafina expansion parkash said “Aquafina premium flavours and offering vitamins and minerals under the brand name Aquafina Vitamin Splash.  The move is in continuation with the US firm’s portfolio transformation exercise, which includes reduction of calories in carbonated drinks".

PepsiCo beverages Senior Vice president Vipul Parkash said “Pepsi cola, Mountain Dew, lime drink and Kurkure snacks, is taking its packaged water brand Aquafina premium in flavours and fortified with nutrients. The move is in continuation of our portfolio transformation exercise, which includes reduction of calories in carbonated drinks and introducing zero or low-sugar beverages across the hydration space.

1,000-crore plus brand, Aquafina competes with Ramesh Chauhan’s Bisleri and Coca-Cola’s Kinley in the crowded and intensely competitive packaged water space.

PepsiCo said that the new product, called Aquafina Vitamin Splash priced at Rs 30 and 50 had the lowest sugar component in its category compared to others in the domestic market.

Vipul Prakash also said “the company is betting big on hydration, and was looking at introducing more drinks with vitamins, flavours, and possibly even in the herbal space with products such as ayurveda water, in response to rapidly evolving consumer preferences for functional beverages. We expect the new product to contribute 10-15% of the packaged water mix over three years. Base water will remain the core product for us.”

PepsiCo India chairman D Shivakumar has resigned from his post after four years. He is now set to join Aditya Birla group venture as a group executive president In January. Soon After resigning, PepsiCo India conformed his resignation and announced new PepsiCo India chairman.  PepsiCo named Its Jordan and Egypt VP and general manager Ahmed El Sheikh as its Chief executive officer.  Shivkumara will hold last day as PepsiCo chairman on 31^st December after joining in 2013.  

Ahmed El Sheikh will be the first non Indian CEO at PepsiCo India.

Sanjeev Chadha, chief executive at PepsiCo AMENA (Asia, Middle East and Africa) said “Shivakumar was instrumental in leading the transformation journey for the company, said. He has been a key driver for portfolio transformation, helped develop our nutrition business, launching innovations with our Quaker and Tropicana brands and deepened consumer engagement with our flagship brands. Incoming CEO Ahmed has held leadership roles in both its foods and beverages segments and in his last role, led the Egypt business, among its toughest markets.”

Maharashtra and Pepsico has entered into an agreement to drive skill development with a focus to modernise the ITIs as well as work on skill development of workers in various food processing units.

The agreement was signed after Pepsico chair Indra Nooyi met Maharashtra Chief Minister Devendra Fadnavis, Pepsico said in a statement.

The company already runs a partnership in the state under which it has invested Rs 180 crore in a citrus processing facility.

The company said in a statement that "We are committed to invest further in the state's progress with increased agricultural sourcing. As part of our continued commitment to Maharashtra, we have invested Rs 180 crore in a citrus processing facility at Nanded.

Continuing with our commitment, we and Maharashtra also discussed collaboration towards skill development with a focus to modernise ITIs as well as work on skill development in various food processing plants in partnership with the state."

Pratik Pota, Vice-president, PO1 sales, of food and beverage giant PepsiCo India and Kimsuka Narsimhan, CFO, PepsiCo India have decided to step down of their positions and have reportedly resigned from the company.

A PepsiCo India spokesperson confirmed the development and said Harsh Rai, CEO and MD of NourishCo Beverages (a Tata PepsiCo JV), will take over the reins from Pota.

Pota, a PepsiCo veteran for 11 years, worked across several functions at the local arm of the Purchase-based company, including developing and launching its packaged nimbu pani (lemonade) brand Nimbooz to re-launching Mountain Dew on the proposition of Darr Ke Aage Jeet Hai (Beyond Fear Lies Victory). As the PO1 (Power of One) sales head of PepsiCo India, Pota was responsible for food and beverages sales of the company. Launched by Indra Nooyi, the PO1 strategy integrates the company's snacks and beverage divisions into a single portfolio. Narsimhan and Pota have left for personal reasons, company executives said.

India's Rs 14,000 crore soft drink industries, which is facing a big challenge due to higher taxes and consumers shifting to healthier beverages, seems to be undergoing significant restructuring at present with PepsiCo's rival Coke shuffling the portfolios of its senior executives in India.

Indra Nooyi, CEO, Indian-American PepsiCo, has joined Donald Trump's Strategic and Policy Forum that aims to assist the president-elect in implementing his economic agenda, as confirmed by the presidential transition team.

Chennai-born Nooyi, 61, is the only Indian-origin executive in the 19-member President's Strategic and Policy Forum, which was first announced early this week. Three new members were also announced in addition to the current 16.

The other corporate bigwigs to join the forum are Uber CEO Travis Kalanick, and SpaceX and Tesla chairman Elon Musk.

The forum, composed of some of America's most highly respected and successful business leaders, will meet with the president frequently to share their specific experience and knowledge as the president implements his economic agenda, a media release said adding the forum will be chaired by Stephen A Schwarzman, chairman, CEO, and co-founder of Blackstone.

Trump said, "America has the most innovative and vibrant companies in the world, and the pioneering CEOs joining this forum today are at the top of their fields. My administration is going to work together with the private sector to improve the business climate and make it attractive for firms to create new jobs across the United States from Silicon Valley to the heartland."

According to the presidential transition team, members of the forum will be charged with providing their individual views to the president -- informed by their unique vantage points in the private sector -- on how government policy impacts economic growth, job creation and productivity.

The media release says, "The forum is designed to provide direct input to the president from many of the best and brightest in the business world in a frank, non-bureaucratic and non-partisan manner."

PepsiCo is the largest US food and beverage company with about 110,000 employees and 100 plants across India.

Indra Nooyi, CEO and Chairman, PepsiCo is on a two day visit to India with an aim to rehash the company’s strategies in India. The company has recently reshaped its portfolio and now it is focusing more on health and wellness category.

During her recent visit to Chennai, she went to few south-Indian restaurants to strike a conversation on how the company can make familiar food health. Nooyi was accompanied by PepsiCo's nutrition ambassador Michelin star chef Vikas Khanna.

The duo discussed and even pen down ideas that can help PepsiCo to make familiar traditional foods healthy. The company is now ramping up its operations to expand its offerings to whole grains, fruits and vegetables across the Indian corridors.

Elaborating on her recent experience, Nooyi commented that as lifestyles continue to change, PepsiCo is on a mission to dial up the nutrition in our portfolio. While revealing the important business data of the company she stated in June that company’s star product ‘Pepsi’ soft drink only account for 12 per cent of the company’s total revenue and hence, it has decided to shift the pendulum to wellness and nutrition category.

“Chef Vikas has provided great inspiration for the company here in India and has played a key role in developing new recipes that are convenient, affordable, delicious and healthy. We had a great time sitting down at a local eatery and enjoying some of my favorite traditional dishes, while exchanging ideas on how we can adapt these time-honored recipes with a knowledge of nutrition informed by the latest science,” added Nooyi. 

India’s captain cool, Mahendra Singh Dhoni, has been dropped from PepsiCo’s endorsement squad and thus, the company has ended its 11 year partnership with India’s most successful cricket captain. Dhoni, currently leading India’s ODI and Twenty20 squad, has been the face of the brand since 2005, with many mammoth advertisement campaigns under his belt including ‘Oh Yes Abhi’, ‘Change The Game’ etc. The move can be marked as one of the setback for the star cricketer and also indicates that his successful run with the advertisers might be losing its pace.

Confirming about the company’s move, Vipul Prakash, VP, PepsiCo Beverages India said that at PepsiCo, company’s focus in advertising and marketing is to make its products the hero and celebrate the hero. The idea will always play the most important role. If there's a role for the celebrity that helps take forward the idea of celebrating our product, company is more than happy to taking it further.

PepsiCo which is popularly known for its beverages brand Pepsi, also produces 7Up and Mountain Dew drinks and Kurkure snacks. Company has a history roping in popular Bollywood celebs and sports personalities for the endorsement of its various products.

Experts said Dhoni's run with advertisers may be tapering with Kohli having emerged as an icon. Kohli, full of the youthful swagger that advertisers want, is said to be charging close to Rs 2 crore a day versus Rs 1.5 crore by Dhoni. In terms of annual contracts, Dhoni's asking price of Rs 8 crore may not be finding too many takers, experts said.

A Norwalk, Connecticut, advertising company has sued PepsiCo Inc. in New York over a Super Bowl commercial.

The advertising firm has alleged PepsiCo of stealing its design ideas for the ad, reported AP.

Betty Advertising filed the lawsuit Tuesday in Manhattan federal court. It accuses the beverage company of stealing its human jukebox concept of a hero character going from room to room, with the style of music changing in each.

PepsiCo is based in Purchase, New York. It says it plans to "vigorously defend" itself against a meritless lawsuit.

The lawsuit seeks unspecified damages. It says PepsiCo listened to a pitch of its "All Kinds/Living Jukebox" concept last November but rejected its idea.

The lawsuit says PepsiCo then infringed on Betty Inc.'s copyrighted concepts as it created the commercial that led into this year's PepsiCo Super Bowl halftime show.

Kurkure, a snack brand from PepsiCo, has launched a vast new range of snacks.

Kurkure introduced 15 new snack offerings like South Tangy Twist, Chiwda Mix for the West, Punjabi Chatka, Shahi Mix, Navratan Mix; to address the diverse Indian palette.

“The last few months have been really exciting for Kurkure. We introduced a new range of namkeens and flavours to address diversity in palettes, size preferences and budgets of Indian consumers and the initial response has been great. Kurkure has always been the most loved Indian snacking brand. With the new expanded range Kurkure is now truly a master brand spanning all Indian snackin,” shared Partho Chakrabarti, Vice President- Snacks Category, PepsiCo India.

These snacks will be available in 150 different pack offerings to cater to different consumption occasions, at different price points.

Families bonding over snacks and conversations have always been at the core of brand Kurkure. It has constantly re-invented itself to remain relevant to the Indian ethos and culture.

Over the years the brand has celebrated families, festivals with its unique consumer engagements/ initiatives like ‘Chai Time Masti’, ‘Why So Sweet’, and ‘Fly Home Free’.

In yet another pioneering initiative, Kurkure will travel across the country over the Asia’s largest railway network* with India’s first food train, the Kurkure Family Express.

Trains are the quintessentially about families, conversation and snacking and hence builds synergies for Kurkure as a platform to engage. Kurkure Family Express, a unique initiative brings families together this holiday season for a fun filled Kurkure culinary extravaganza. Food aficionados Rocky Singh and Mayur Sharma will host 40 different families across the four zones over an eight day journey across India.

The journey will entail different fun recipe contests where families will compete with each other to win. Four lucky families will be sent on an all-expenses paid culinary trip to Europe. Families will also have a chance to be the face of the Kurkure brand and get featured on Television Commercials, Digital platforms and other marketing initiatives.

“Kurkure has been radical when it comes to placing its brand in the hands of its consumers. Whether it is featuring them in brand advertising or bringing alive their interpretation of it, we continue to create opportunities for them to express their love. The Family Express will feature 10unique art works by design students and family moments from train journey will also be captured for the new television campaigns that will go live in mid-June,” added Chakrabarti.

The Kurkure Family Express will leave Delhi on May 16^th and travel across the country, through 12 cities including Sawai Madhopur, Surat, Lokmanya Tilak Terminal (Mumbai), Pune, Tirupati, Chennai, Vijaywada, Bhubaneshwar, Chitpur (Kolkata), Mughalsarai and Kanpur Central before culminating at Delhi. Families will embark and disembark at the four metro stations.