With focus on health and nutrition, PepsiCo to reduce sugar content in its beverages
Double-income families, single households and the increasing number of women in the workforce had increased demand, said PepsiCo India CEO D Shivakumar.
PepsiCo Inc’s Indian arm PepsiCo India Holdings Private Limited will increase its focus on health and nutrition and will also reduce the sugar content of its beverages. It will also launch more nutritious products under its Tropicana and Quaker brands and will encourage environmental responsibility, Mint reported on Friday.
The moves will ensure sustainable growth for the company in the Indian market, it said. PepsiCo India CEO D Shivakumar told Mint that consumers were willing to buy packaged foods as long as they were “healthy and nutritious”. “It’s a consumer-driven demand backed by changing lifestyle, double-income families, single households and more women joining the workforce,” Shivakumar said. Consumers purchasing from e-commerce outlets have a higher demand for healthier products, he added.
Fruit juices and oats were the fast-growing segments for the company, the CEO said. “People are picking up oats and the category is growing. PepsiCo is doing a lot of local innovations to enhance the breakfast offering,” he said. The company is using strategies such as introducing poha and upma as well as one-meal packets to increase its market penetration.
While the nutritious food and beverage market in India is expected to grow to $6 billion (approximately Rs 40,911 crore) in the next few years, companies such as PepsiCo and Coca Cola India are facing increased scrutiny by consumer groups and the public. In October 2016, a Health Ministry body reported that five different toxins were found in soft drinks manufactured by PepsiCo and Coca Cola.
On Tuesday, Tamil Nadu trader associations decided against selling soft drinks and water manufactured by multi-national companies and to sell only Indian brands from March 1. Tamil Nadu Vanigar Sangangalin Peramaipu President AM Vikramaraja said they will be spreading awareness among traders and consumers about the “evil of these foreign brands” in February. “They cause more harm than good to the body,” Vikramraja had said.