All of those Require Vision, Positive Energy and Multi-Sector Collaboration.
PepsiCo Strategy: Concerted Action We’re Focusing Our Efforts at the Intersection of Business Interest and Public Interest . . . Business Interest: Public Interest: Capture Growth Opportunity Promote Real Solutions Making it Easier and More Enjoyable for Mainstream Consumers
Healthier Product Choices
Healthier Lifestyle Habits
PepsiCo Progress Report
Better Nutrition Labeling
Front of Pack Info
Nutrition Panel Improvements
Highlight on Pack, Changes in Nutritional Profiles
Reduction in fat, saturated fat, sugar & calories
Kids Marketing Pledges Being Strengthened around the Globe
US, Canada, Australia, EU, UK
School Alliances to Promote Health (e.g. Clinton/AHA)
Kids Energy Balance Education and Activation around the world (e.g. Vive Saludable)
Family Activation (e.g. America On The Move ™)
Major New Product Launches in Every Market that meet H&W Criteria
Healthier Product Nutrition Standards Established World-Wide
Healthier Product Innovation Objectives set for all Managers– e.g. 50%+ Europe.
Trans Fat Elimination for savory snacks.
New Oils Programs — Canada, Europe, Australia and US
More Portion-Controlled Offerings
Set “Human Sustainability” Objectives for Reduction in calories, sat fat, sugar, sodium per serving.
1 Make it Easier to Choose Healthier 3 Promote Healthier Lifestyles 4 Accelerate Healthier Product Development Improve Healthfulness of Existing Products 2 Improve Healthfulness of Existing Products Choices Habits
Recent New Product Highlights Reducing Fat Reducing Sugar Adding Positives
Frito-Lay and Good-For-You Snack Food
Fruit & Veggie Chips Whole Fruit & Whole Veggie Flat Earth Snacks: “Impossibly Good” Fruit & Veggie Servings
Red Tomato Ranch Fruit and Veggies in Each Serving Tangy Tomato Ranch Wild Berry Patch
Smart Spot ™ Makes It Easier to Identify Healthier Choices PepsiCo Nutritional Varieties Health Perception Benefits Indulgent Products with Health Improvements Natural & Organic 0 Trans Fats/Low Sat Fat Diet-Specific Offerings Low-Carb Smart Spot ™ Qualified Products Demonstrable Nutrition Benefits Good- For-You Better- For-You Quaker Oats Tropicana PP Aquafina Propel Baked Lays Diet Pepsi Pepsi Max Gatorade GFY FFY
We Launched with National Advertising and Retail Events
Smart Spot™ Products are Driving Revenue Growth North American Net Sales* Fun-For-You Smart Spot ™ / Good-For-You Smart Spot ™ / Better-For-You (Reduced) 19% 25% 56% 44% of Net Sales* +6 Points from 2003 Q3 2007 Sales Mix 2010 Sales Mix Goal * Net sales includes all Smart Spot ™ eligible products. Smart Spot™: 50%
Smart Spot™ “Good-for-You” Growth Continues at Double Digits +9% +13% +5% +9% GFY N.A. Net Sales Growth vs. YA +12% 2002 2003 2004 2006 2005 2007 Q2 YTD +11%
We Started Looking Outside-In Early Forming Critical Partnerships . . . . . . And Broadening Our Understanding Gro Brundlandt, M.D. Antonia Demas, Ph.D. David Heber, M.D., Ph.D. James Hill, Ph.D. Gov. James B. Hunt, Jr. David Kessler, M.D., J.D. Brock Leach, MBA Dean Ornish, M.D. Janet Taylor, M.D. Kristy Woods, M.D. MPH Former Director General, WHO Director, Food Studies Institute Professor of Medicine & Public Health, UCLA Professor of Pediatrics & Medicine, Univ. of CO Former Governor of North Carolina Dean, School of Medicine, Univ. of CA-- SF Former Chief Innovation Officer, PepsiCo Founder, Preventive Medicine Research Institute Pediatric Psychiatry, Harlem Hospital Wake Forest University School of Medicine Blue Ribbon Advisory Board on Health & Wellness YMCA Dr. Kenneth Cooper Dr. Jim Hill Dr. Dean Ornish
Marketing Practices Partnerships– U.S. Examples Schools: Clinton Foundation - American Heart Alliance Kids Marketing: PepsiCo Pledge Front-of-Pack Labeling: Keystone Project Elementary & Middle Schools: Water, milk, 100% juice with portion caps High Schools: Water, low or no calorie beverages, 100% juices, light juices, milks, sports beverages Portion caps 50% water or low/no calorie beverages Co-Regulation Self-Regulation Multi-Sector Kids Under 8: No Advertising or Marketing Targeting Children Under 8 Kids 8 to12: Advertising on Smart Spot™ products only. No advertising or marketing in schools. No product placement on kids media. 3 rd party licensed characters, interactive games with Smart Spot products only. Goal: Uniform Front-of-Pack Labeling: Icon or GDA with common nutrition standards. Participants: Retailers, Food Companies, NGO’s, Universities, Federal Agencies. Learning To-Date: Label guidance systems work. Targeted Completion: Mid-2008
Multi-Sector Example: Oxford Health Alliance
Scientific Intervention Study Building on Learning that Comprehensive Community-Based Intervention can Work.
French EPOD, Australian Multinational Study, Tufts, Arkansas,
Directly Affecting 2 Million People.
Focused on Nutrition, Physical Activity and Reduction in Tobacco Use.
Employing Coalition-Building and Education in Schools, Workplaces, Health Centers and Community Centers.
Include Healthy Food Choices and Promotion.
PepsiCo Foundation Provided $5.2 Million Grant for Implementation and Evaluation.
PepsiCo Foundation Funding 4 Community-Based Interventions: China, England, India, Mexico
For What Should Food Companies be “Held to Account”? 2. Healthier Lifestyle Habits: Creative, Collaborative Partnerships 1. Healthier Product Choices: Reformulation, Innovation and Marketing Leading Food and Beverage Companies are Prepared to be Held to Account for Being Constructive Partners in the Solution
Confronting the Obesity Epidemic: The Power of Unlikely Partnerships Brock H. Leach Member, PepsiCo Blue Ribbon Advisory Board on Health Chief Innovation Officer (Ret) PepsiCo, Inc. October 30, 2007