PepsiCo Says It’s “Smart” Prioritizing Healthier Products and Ecommerce – Marketing Week

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Pepsi says its “positive” first quarter results were obtained by responding to changing consumer trends, such as seeking healthier products and improving its e-commerce offering.

PepsiCo is putting more and more emphasis on e-commerce and sustainability, as the CEO of the company says, “It’s not just necessary, but a smart business”.

The company released its first quarter results today (April 26), which show total sales increased 1.6% in the first quarter of this year, while organic revenue increased 2.1% for the same period.

Speaking on a call to investors, the company’s CEO Indra Nooyi said its “good performance” was made possible by Pepsi’s ability to anticipate societal changes and changing consumer needs.

“It has been clear to us for over a decade that if we want our future to be as bright as our past, we need to transform our business in a number of ways,” she said.

This includes responding to consumers adopting healthier lifestyles; a trend that has led PepsiCo to produce more “nutritious” products. It also puts more emphasis on sustainability, which Nooyi says is “not just necessary, but a smart business.” About a third of its production plants currently have almost zero waste.

“We seek to meet the changing needs of consumers around the world. We have guilt-free products, which include drinks that are 72 calories or less and snacks that are low in sodium and saturated fat. About 35% of our net income comes from guilt-free products – these [brands] grow faster than the entire portfolio, ”she explained.

Nooyi says PepsiCo is also building a “powerful” e-commerce team globally, with a particular focus on the United States, China and the United Kingdom.

It therefore seeks to tailor its digital efforts to individual retailers “to suit their growth strategy”. When asked if the company is struggling to capture consumers making impulse purchases online for its products, Nooyi insists this concern could be reframed as an opportunity.

She concluded, “When it comes to the challenges of impulse shopping in an online environment, we have built a good e-commerce business. I can’t discuss the exact [growth] rate but it is impressive. Our challenge as a business is to have an impact online, so we are working with partners to make [our brands] look like categories of impulse.

Perhaps unsurprisingly, Nooyi did not use the investor call to discuss the recent controversy surrounding Pepsi’s Kendall Jenner protest ad.


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