New product development
We want to develop new products that transform the categories we are and create demand for new healthier products.
Our existing product portfolio is well placed to deliver both financial growth for the business and make a positive contribution to public health. But the scale of our ambition requires us to develop new products that transform the categories we are already in, and create new demand for healthier products throughout the day.
This ambition will require collaboration with others to make new healthier options appealing and attractive to consumers. As an example, in June this year, we announced a two-year partnership with world leading restaurant El Bulli in Spain. The partnership will allow our own R&D teams to work with El Bulli founder Ferran Adria to explore how this unique approach to creating new tastes can help deliver new innovations in every-day food.
Indra Nooyi meets Ferran Adrià at the El Bulli restaurant
Walkers Baked, which is 70% lower in fat than our core brand, and Sunbites, which delivers 16g of wholegrain per portion, launched in 2006 and 2007 respectively, are both established parts of the Walkers portfolio. We are putting significant investment in marketing Sunbites in 2011 to grow the brand (see Marketing and accessibility).
Currently 9% of our savoury snacks portfolio is baked or includes positive nutrition. This is down slightly from 10% in 2008 as, while we have grown the sales of these products, sales of the whole portfolio grew at a higher rate so the proportion which is baked or includes positive nutrition has reduced slightly. We expect to make good progress towards our target of 50% savoury snacks being baked or including positive nutrition by 2015 in the coming years.
We are extending the reach of our Tropicana fruit juice brand through new flavours including a lemonade which is 100% fruit juice, sweetened by apple juice and containing no added sugar. In 2010, we also launched a gazpacho, Alvalle, already popular in Spain, as a healthier lunch time option.
Investing for healthier growth – case study
In October 2010 PepsiCo Inc. announced the formation of a Global Nutrition Group led by our Chief Scientific Officer, to establish PepsiCo as the leading provider of healthier food and drinks that are great tasting, wholesome, accessible, affordable and advantaged by science. The Group includes researchers, nutritionists, scientists, chemists, public health and behavioural science specialists working to deliver breakthrough innovation in the areas of fruits and vegetables, grains, dairy and functional nutrition. It will play a key role in tripling the size of our "Good for You" global business from $10bn now to $30bn by 2020.
Please give us your comments on the 2011 Health Update and our plans for the future.
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