PepsiCo Shifts Focus to Zero-Sugar Beverages and Digital Growth in India
PepsiCo bets on zero-sugar drinks, digital push to drive India growth
The Economic TimesImage: The Economic Times
PepsiCo plans to transition its beverage portfolio in India to 90-100% zero-sugar or mid-calorie products by 2030, up from 55-60%. The company is investing ₹5,700 crore (approximately $685 million USD) in India to enhance growth through digital strategies and capacity expansion.
- 01PepsiCo aims to increase its zero-sugar beverage offerings to 90-100% by 2030.
- 02The company is investing ₹5,700 crore (approximately $685 million USD) in India for growth.
- 03Digital strategies, including a consumer app on WhatsApp, are central to PepsiCo's approach.
- 04PepsiCo's India operations are seen as a key growth contributor within its global portfolio.
- 05The company is adapting its advertising strategy to focus more on digital content and influencer engagement.
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PepsiCo is set to transform its beverage portfolio in India, aiming for 90-100% of its products to be zero-sugar or mid-calorie by 2030, up from 55-60% currently. This strategic shift is part of a broader plan to cater to changing consumer preferences and is backed by a substantial investment of ₹5,700 crore (approximately $685 million USD) aimed at expanding capacity and enhancing digital capabilities. Jagrut Kotecha, PepsiCo's India and South Asia CEO, emphasized the importance of digital technology, noting that the company utilizes a WhatsApp-based consumer app called Pep Genie to gather insights. The investment will focus on both new and existing facilities, with India identified as a crucial market expected to contribute over 85% to PepsiCo's future growth. Kotecha also highlighted the need to adapt advertising strategies, shifting from traditional celebrity endorsements to digital content that engages consumers. Despite competition from local brands and geopolitical tensions, Kotecha remains optimistic about India's growth potential, attributing it to a self-consumption-driven economy.
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This shift towards healthier beverage options may lead to more choices for health-conscious consumers in India, potentially influencing market trends and consumer habits.
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