Newsletter

Strategy and approach

These pledges commit us to a business-wide strategy that will transform the way we make our future profit and growth.

Download a pdf of our pledges and progress.

Download PepsiCo Health Report Vision (198KB, pdf)

Public health and our business

The prevalence of obesity in children and adults is growing, increasing the risk of developing type 2 diabetes, heart disease and a variety of cancers. If the trend continues, together with the predicted increase in life expectancy, it will have a major impact on both public health and the cost to society of responding to it. In many ways the challenge is as big as climate change.

(Figure 1) Projected UK obesity rates (2050)

PepsiCo UK and Ireland Health Report 2010, Projected UK obesity rates (2050)

(Figure 2) Strategic future risk assessment: public health and PepsiCo UK The business case for change

(Figure 3) Factors driving obesity (Foresight Report)

PepsiCo UK and Ireland Health Report 2010, Factors driving obesity (Foresight Report)

The most definitive review of obesity in the UK - the Foresight Report (2007) - highlights the roles played by dietary habits, physical activity and appetite control. It is accepted by many that physical activity has declined rapidly over the last two generations - as employment moved from heavy industry to office jobs, and we walk less and drive more. But there is a much more hostile, and often conflicting debate on food. Eat less 'junk'. Cook from scratch. Organic. Snacking is key. Eating out is key. Whilst the causes and solutions are widely debated, the World Health Organization, national governments, investment analysts and leading NGOs, supported by the media, are placing widespread attention and pressure on the food industry to improve the diet of the population. Food companies are under pressure to evolve the composition of the food and drink they produce, and to reframe their marketing and advertising.

Key fact: Projected cost to UK in 2050 from chronic disease: £45.5 billion

The projected rise in obesity-related chronic diseases, and the consumer, regulatory and market responses to it, therefore pose important threats to our business. Future regulation could impose severe restrictions on food marketing, advertising and routes to market. Consumer demands in the future could be radically different. But the challenges also give opportunities - for new products, new services and new markets. The projected rise in obesity, consequent poor public health and how we choose to respond to these social challenges, will be critical to the future of our business (see figure 2). We intend to respond proactively, responsibly, and plan for the long-term. And like that of society, our response must take science and firm evidence as its starting point to maximise its potential positive impact.

(Figure 4) Obesity rates - UK (female)

Key fact: Just over three portions of fruit and veg are consumed every day on average – falling short of the “at least 5 a day’ recommendation

PepsiCo UK and Ireland Health Report 2010, Obesity rates – UK (female)

"PepsiCo UK is changing. It's great that it wants to focus its growth on healthy products and help people make better choices about what they eat and drink. I'd like to see more of the food industry, both in the UK and globally, setting these kind of ambitious targets."

Peter Madden, Chief Executive, Forum for the Future.

Richard Evans health vision for PepsiCo UK