Attempting an image makeover from being calorie-rich to health-conscious, PepsiCo India is working towards launching a nutritious beverage within three years.
The company has already set up a nutrition advisory board comprising medical and nutrients experts and is looking to work with non-government organisations such as the World Health Organisation and UNICEF.
Interestingly, this project will be spearheaded by PepsiCo India's newly appointed CEO Sanjeev Chadha, who had initiated research on the nutritious beverage as the head of the company's innovation department for Asia.
"While sales teams and R&D departments are working at the Asian level, the drink formula and business strategy has to be finalised fundamentally at the country level," he said.
The company will leverage its vast distribution network across the country to popularise this "vitamin-bundle". "We are present in the most remote of villages. We want to use that to spread a vitamin and calcium rich beverage," said Chadha.
The new drink is intrinsic to the 'performance with purpose' agenda declared in 2006 by Indra K Nooyi, PepsiCo's president and chief executive officer. When Nooyi had visited India in December, her first official trip since taking charge of the $33 billion multinational company, she had said Pepsi would broaden its portfolio from 'treats'
(colas and high-calorie snacks) to nutritious products.
Wanting to break away from being branded just as a cola, Chadha said, "My aim is to have four Pepsis." PepsiCo India wants to be associated with four kinds of beverages that are likely to be juices, nutritious beverages, water and, of course, its colas."
Chadha on Wednesday made it clear that this vision was being extended to India not only because of Nooyi's "special interest in the country" but also because the country featured in the top-five markets for PepsiCo International.
"My goal is to be in the top three. While it is true that beverages are highly seasonal and high temperatures help in increasing our scale, the game is all about finding the right product to sell. For instance, Iceland's consumption per capita is 50 times that of India's. We have to expand our portfolio," he said.
The Indian subsidiary has plans of launching many new beverages over three years. These include 'functional waters', that is flavoured water as well as water mixed with nutrients and 'healthy whites' such as soya-based beverages and flavoured milk. The recent successful launch of soya-based drinks in China, which incidentally Chadha had been in charge of, has convinced PepsiCo India of its potential here.
There are also plans of scaling up Tropicana, the juice brand of Pepsi. "This market is very exciting and is rapidly growing. There is also huge potential for juice-related drinks such as Slice," said Chadha.
The company's sports drink Gatorade is currently available in select markets. Its presence will be increased to many more tier-II cities this year.
PepsiCo has a joint venture with Starbucks in the US for ready-to-drink coffee. With the coffee chain planning its foray into India, "PepsiCo India will look to leverage its existing partnership here eventually."
