Stakeholder engagement and public policy
We will act transparently, engage widely and promote best practice and accountability in the UK and globally.
The external world - changing consumer preferences, new scientific developments, public policy and regulation - profoundly affects our business. Nowhere is this more true than on nutrition, health and wellness. Effective stakeholder engagement is the only way for our business to identify emerging concerns and understand the health and nutrition debate.
Bringing external views into our business
In 2006 PepsiCo UK set up its first External Advisory Board, designed to give the business direct and candid advice on its corporate strategy, R&D priorities, external threats and opportunities and its corporate and brand reputation. Its members have a wide range of expertise, covering public policy, consumer behaviour and attitudes, and nutrition - for example, former Secretary of State for Health, Rt Hon Alan Milburn MP. The Advisory Board reports directly to the PepsiCo UK & Ireland President.
The Advisory Board has been instrumental in encouraging many other forms of external engagement, helping outside experts to develop and review our policies and actions - at both Board and Operational levels. We will maintain our commitment to consult critics actively, listen to what they have to say and act where appropriate.
CASE STUDY - Stakeholder engagement
For the last two years we have been developing a new healthier range of products to appear in children's lunch boxes, Planet Lunch. But we also knew that certain product categories may not be acceptable to stakeholders, irrespective of their health profile. Stakeholder feedback was adopted, and crisps were not included in the range.
Stakeholder engagement on this Report
When we began scoping this Report, we knew that stakeholder engagement would be critical to its success. We began, in autumn 2008, by conducting a wide- ranging review of external frameworks and metrics (including the World Health Organization's Global Strategy on Diet, Physical Activity and Health, the UK Government, other companies and other ethical frameworks) to determine our own framework and strategy. Following an initial seminar in December 2008, we held a series of stakeholder workshops in partnership with the Oxford Health Alliance.
Stakeholders attending the workshops provided a series of recommendations both for our reporting in this, our first Health Report, and for our future reporting and strategy (see Scope, boundaries and assurance). Stakeholder feedback was critical in strengthening this Report.
Engaging with government, trade associations and professional bodies
Our Nutrition, Regulatory and Corporate Affairs teams have regular dialogue with officials in the Department of Health and the Food Standards Agency, as well as a range of other groups within government and Parliament. These discussions cover product reformulation, responsible marketing practices and a wide range of other issues.
We are an active supporter of the Government's anti- obesity campaign Change4Life, and the FSA's campaign on saturated fat reduction and sodium reduction.
PepsiCo UK is also a member of a wide range of industry associations, including the Food and Drink Federation, the British Soft Drinks Association, Snack, Nut and Crisp Manufacturers Association (SNACMA) and the Advertising Association. We are actively involved in organisations that work across a multitude of sectors and specialisms, including the British Nutrition Foundation and the Institute of Grocery Distribution.
Acting in advance of regulation
PepsiCo UK stopped all advertising of Pepsi and Walkers to children in 2004, two years in advance of legislation. We ceased vending Walkers crisps and regular Pepsi in schools in 2004, two years in advance of OFCOM's restrictions introduced by the Schools Food Trust. Trans fats are not used in our UK portfolio. We reduced saturated fat and salt in Walkers (by 70-80% and 25-55% respectively) in advance of targets from the Food Standards Agency. Stakeholder engagement has been critical in making us aware of the emerging science on public-health threats, and of future regulatory pressure. By staying ahead of the curve our business has been able to make the correct investments in R&D, and avoid the costs associated with last-minute regulatory compliance.
Engaging with scientists and civil society
Our nutrition and regulatory teams closely monitor nutrition research from the UK, Europe and further afield to understand the latest trends, threats and opportunities. In 2008 we were a founder supporter of the Diet and Health Research Industry Club (DRINC) - a unique public-private partnership between three UK research councils and 15 food and drink companies, which over the course of two years will support £10 million worth of food and health related research in UK research establishments.
Responsible public affairs
We know that we, and other stakeholders, need to adopt consistent public policy positions - whether representing our own views directly or via our trade associations. Our positions need to be grounded in robust scientific evidence, and to take into account societal trends in public health and obesity. We will work with policymakers to support measures that help to address obesity and the rise in chronic disease. We will disclose all of our memberships of trade associations, and our partnerships or funding arrangements with think-tanks or research institutes.
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