PepsiCo UK announces 10 year pledge to focus future profit and growth on healthier products

Launch of first Health Report sets out commitments to transform product portfolio to meet consumer demand for healthier products.

23 March 2010

PepsiCo UK today publishes its first Health Report, laying out its vision for 2020 - to be a business whose profit and growth will come from healthier products.

The food and drink company, whose current £1.5bn product range includes Walkers, Tropicana, Pepsi, Quaker and Copella, commits to renovating the core of its business, reshaping the savoury snack and soft drink categories, and focussing its future research and development on products with positive nutrition - including fruit, fibre, wholegrain, and vegetables.

Key pledges include:

• 50% of savoury snacks will be baked or include positive nutrition by 2015
• 65% of carbonated soft drink can and bottle sales will be 'no sugar' by 2015
• A calorie cap of 160 Calories across single serve savoury snacks without positive nutrition by 2015
• To deliver 1.8bn servings of fruit and vegetables and 1.7bn servings of wholegrain each year by 2012

PepsiCo UK President Richard Evans said:

"In recent years, PepsiCo UK has responded to public health concerns by tackling the core of its business, reducing salt and saturated fat on crisps and snacks, and building strong no-sugar cola brands. We've achieved a great deal, but we're committed to going further.

Transforming the business won't be easy but the changes we propose are real and achievable. Our commitments go with the grain of where our consumers are going. I believe that companies like PepsiCo have a responsibility to lead change - and to be accountable for it."

The UK announcement follows an announcement earlier today by PepsiCo Global CEO Indra Nooyi of goals on nutrition, environmental sustainability and employee well-being. Among them are specific commitments for the business globally to increase the use of wholesome ingredients, such as whole grains, fruits and vegetables, and to reduce levels of sodium, saturates and added sugar in its products.

Secretary of State for Health, Andy Burnham, comments:

"This PepsiCo report is encouraging reading. It demonstrates the clear progress made by a company that supports our aim of making it easier for everyone to make the healthier choices that will help us all lives happier, longer lives.

"People need support to change their attitudes to food - it isn't something Government can tackle alone. They need the help of their peers and crucially, an environment that helps them choose healthier, lower fat, lower calorie options in the shopping aisles. PepsiCo's pledges to work towards our shared goal of a healthier future for all are very warmly received."

Shadow Secretary of State for Health, Andrew Lansley comments:

"I understand that the scale and nature of the obesity challenge we face cannot be tackled by Government action alone. We need a partnership approach with business, the voluntary sector and social enterprise. That's why I welcome the publication of PepsiCo's report.

It demonstrates exactly the kind of leadership from the food and drink industry that is required to improve public health outcomes. The proposals - particularly in relation to reformulation and portion size - are entirely compatible with those set out in the Public Health Commission paper which we commissioned and was published last summer. I hope that other companies will be inspired by this report. Together we can make it easier for people to make the healthy choices they want to make."

Which? comments:

"Consumers are longing to make healthier choices when it comes to the food that they eat and crying out for companies to improve their offering. PepsiCo is savvy enough to know that innovating and providing an increasing range of healthier options is the way to keep their customers happy and their long-term future secure. Having been at the forefront of a campaign to make the healthy choice the easy choice, Which? has welcomed the positive changes they have started to make and would urge other companies to follow suit."

For PepsiCo UK, the Health Report marks the latest step in the business's journey to become a healthier food and drink company. It has already taken significant steps along that journey: it launched Diet Pepsi in 1964; acquired Tropicana in 1998 and Quaker in 2001; reduced salt in Walkers by 55% since 2005; reduced saturated fat in Walkers by 70% in 2006; and launched healthier products with significantly lower salt, fat and sugar, including Walkers Baked, SunBites, Tropicana Smoothies, Paw Ridge and Planet Lunch. No sugar soft drinks make up over 60% of Pepsi sales in the UK. Sales of Tropicana are almost three times those of regular Pepsi in the UK.