PepsiCo’s India business has witnessed a double-digit CAGR in terms of organic revenue over the past five years. The snacks and beverage major said it is working on ramping up distribution in markets like India and China. The company’s top management also stated that it is focusing on offering more price points and building some value brands, especially in emerging and developing markets.
Speaking at an analyst event on Wednesday, Ramon Laguarta, Chairman & Chief Executive Officer, PepsiCo, Inc said, “From the country point of view, we’re building very large-scale organisations and businesses highly capable in many of the key markets around the world. Some examples (are) Mexico, Brazil, India, large population markets, where we now have very scaled businesses, have been growing at double-digit; China, UK (in) high single-digit. Now, again we have businesses of various scales: $1 billion-plus, multi-billion dollar plus in many of these markets that have the capability to now reinvest and continue to grow for the long-term.” He was addressing an event organised by the Consumer Analyst Group of New York (CAGNY).
In 2024, PepsiCo India recorded double-digit organic revenue growth. The India unit of the snacks and beverage major also saw double-digit growth in terms of snacks and beverage volumes last year.
Price points
“We’re trying to reach many more millions of points of sale in India, in China,……This is about giving the consumer more touchpoints throughout the day to our brands,” he added.
Noting that “value” is critical for consumers, Laguarta said that the company is offering “many more price points” and building “some value brands” that help consumers stay in the categories that it offers. “Price point, especially in emerging and developing countries, is a key for category development. We’re doing that in the US as well….in India in the coming months,” he added.
The global chief of PepsiCo also noted that Sting, which is the company’s energy brand in Asia, has leadership in India. “Clearly, a platform that is giving us the right to participate with affordable energy globally,” he added.
The company said it is looking to meet the evolving consumer needs in markets around the world as they are becoming multicultural. “We need to be able to provide consumers with authentic, relevant flavours and products that remind them of their food cultures and the country they come from, or the culture where they come from. For example, Kurkure which is one of our best products in India, now we’re able to sell it in the US. We’re able to sell it to Canada to those populations that are relevant for the product,” Laguarta added.