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Journalism of Courage
Global cola major PepsiCo aims to triple its USD 10 billion health drink business over the next 10 years as it sees 8220;huge growth areas8221; for its 8216;Good for You8217; drinks,the company8217;s Chairman and CEO Indra Nooyi said.
8220;There is a tremendous growth in the health drinks segment. Right now we have a USD 10 billion business for 8216;Good for You8217; products.
8220;We think over the next 10 years,the business will be worth USD 30 billion,8221; Nooyi said at an event organised by the Economic Club of Chicago on Monday.
She said going forward,the USD 60-billion PepsiCo would focus on geographic development as well as expansion of its 8216;Good for you8217; category of snacks and drinks.
While the company would expand footprint of its existing products,there are several markets where the per capita consumption of Pepsi8217;s products is low.
There are tremendous geographic growth opportunities especially in the fruits,vegetables and grains category.
Nooyi said while Pepsi already has a sizeable business in the health drinks segment,there are huge growth areas for the future.
PepsiCo commands significant market share with its portfolio of health and wellness drinks.
About 80 per cent of the company8217;s portfolio is made up of 8216;Fun for you8217; products such as Pepsi,Diet Pepsi,Lays,Doritos and Fritos.
The other 20 per cent is made up of 8216;Good for you8217; health drinks such as Tropicana,Quaker Oats and Gatorade.
Last week PepsiCo announced that it was exploring possibility of a joint venture in non-fizzy soft drinks like juices with Tata Tea,which has under its belt natural mineral water brand Himalayan and energy drink 8216;T!ON8217;.
Nooyi,however,refused to comment on the JV.
On her outlook for the American economy,Nooyi said the US would continue to be the 8220;single largest economy8221; over the next 20-30 years.
Contrary to popular sentiments that in the coming years,balance of power would shift to Asia,which will become home to some of the largest economies,8221;US will remain the most powerful economy,8221; she said.
8220;The country still is a hotbed of creativity. Don8217;t write off the US. I don8217;t think the world can be successful if the US is not successful,8221; she added.
