PepsiCo Sees Good Potential in Health Food Segment

Oct 27, 2011 10:00 AM ET

PepsiCo sees good potential in health food segment

PepsiCo, hitherto known for its beverages and snacks, is now focussing on the health food segment, particularly breakfast cereal, to drive sales and expand its market base in India. One such product that tops the priority list of the U.S.-based food and beverage giant is Quaker Oats, which is globally a leading brand and fast picking up in India.

This transition is also is in line with PepsiCo Chairman and CEO Indra K. Nooyi's vision of generating $30 billion in revenues from ‘healthier' products alone by 2020.   Incidentally, India, which is the fifth most important country for PepsiCo globally, is the first such market where the U.S. firm is targeting ‘value segment' customers with its ‘health products'.   The Indian breakfast market is now valued at around Rs.2,000 crore, out of which the share of cereals such as oats, cornflakes and muesli is around Rs.500 crore.   “With Indians becoming more health conscious and trying new food options, particularly in cities, we see it as an opportunity to introduce our healthy products — internally called ‘better-for-you and good-for-you products' — such as Quaker Oats to further boost our sales,” said PepsiCo India Vice-President (Marketing-Quaker) Vani Gupta. “With health diseases rising rapidly among Indians, we are giving a healthy option in the form of Quaker Oats, which provides 100 per cent natural wholegrain nutrition advantage. Even the U.S. Food and Drug Administration (USFDA) has concluded that beta-glucan, a soluble fibre found in whole oats lowers blood cholesterol level thus help protect heart,” she pointed out.   To continue reading about PepsiCo’s expansion into India on, click here.   About PepsiCo 
PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 19 different product lines that generate more than $1 billion in annual retail sales each. Our main businesses -- Quaker, Tropicana, Gatorade, Frito-Lay, and Pepsi Cola -- also make hundreds of other enjoyable foods and beverages that are respected household names throughout the world. With net revenues of approximately $60 billion, PepsiCo's people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo's promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment, including by conserving energy and water usage, and reducing packaging volume; to provide a great workplace for our associates; and to respect, support, and invest in the local communities where we operate. For more information, please visit   PEPSI17980