Product
Choices

Trends, such as a desire for convenient, functional nutrition, local and natural ingredients, and better-for-you snack and beverage options, have firmly taken hold and will continue to accelerate around the world.

We anticipated these trends early on with the acquisitions of Tropicana and Gatorade, and merger with Quaker Oats, and we have taken significant actions to balance our portfolio of offerings.

For the past five years, we have been working to deliver great-tasting snacks with lower levels of sodium and saturated fats and delicious beverages with fewer or no added sugars.

Good-For-You
Our growing Good-for-You portfolio comprises nutritious food and beverages that include fruits, vegetables, whole grains, low-fat dairy, nuts, seeds and nutrients, with levels of sodium, added sugars and saturated fats that are in line with global dietary recommendations. Also included are offerings that provide a functional benefit, such as addressing the performance needs of athletes.

Better-For-You
We have improved the nutritional profile of many of our snacks and beverages. In snacks, we have reduced saturated fats and sodium levels, and we are increasing baked and whole grain offerings. In beverages, we are increasing the number of low- and zero-calorie choices and reducing added sugars.

Fun-For-You
Our Fun-for-You portfolio includes treats that are enjoyed all over the world, as well as regional, culturally relevant favorites.

We know consumers want great-tasting products, in convenient forms, at prices they can afford.

Our innovation aims to address taste, price and convenience. Every product we create is the result of extensive work in the test kitchen by our chefs, product developers and nutritionists on texture, aroma, taste, form, value and nutrition.

For example, to increase whole grains in the Malaysian diet, Quaker Malaysia introduced Quaker Oats for Rice, which contains seven times more fiber than white rice and three times more than brown rice. Quaker Oats for Rice is specially made to be cooked with rice, a staple of the Malaysian diet, and it is easy to prepare. It is also high in protein, iron, magnesium and vitamin B12.

Quaker has also launched a major protein platform across breakfast and snacks, including Instant Quaker Oatmeal, Soft Baked Bars and Breakfast Shakes. These products offer tasty, wholesome and convenient breakfast and snack options.

In addition, Quaker continues to build on its whole grain platform with new products that satisfy the growing consumer demand for convenient and nutritious grains.

In 2012, PepsiCo introduced Quaker Real Medleys Oatmeal in the United States, pairing Quaker Oats with chunks of real fruit and nuts in a portable and portion-controlled cup.

In other areas, such as sports nutrition, Gatorade and the Gatorade Sports Science Institute continue to study new and innovative ways to help athletes improve performance through proper hydration and nutrition.

In 2013, Gatorade Recover Whey Protein Bars were introduced in the United States to aid muscle recovery after exercise.

In the United States, Tropicana launched three new flavors of Farmstand 100 percent juice that include one serving of fruit and one serving of vegetables per 8 ounces.

Similarly, Naked Juice introduced the Chia Sweet Peach and Chia Cherry Lime flavors, which include chia seeds, often described as a “superfood” rich in omega-3 oils, antioxidants, protein and fiber, as well as the Kale Blazer with green vegetables.

Saturated Fat
We’ve made progress during the past five years since declaring our ambitious goal of reducing saturated fats in our products. PepsiCo teams in the United States, the United Kingdom, China and Turkey have met our goal of a 15 percent reduction in saturated fats in key global brands in key markets, as compared to the 2006 baseline. We’ve also been an industry leader in eliminating nearly all trans fats from our U.S. product portfolio and many of our global products.

In 2013, through the introduction of new products, as well as volume shifts for key brands in our portfolio, we removed approximately 402,000 metric tons of added sugars from our total beverage portfolio in North America (United States and Canada) as compared to 2006.

Reducing added sugars in key global brands has continued to be challenging, but we are making progress in places such as Russia, Brazil, Saudi Arabia, the United Kingdom and Canada. In 2013, the United Kingdom launched Trop50 with 50 percent less sugar than regular Tropicana, and Russia launched Lipton Ice Tea with 30 percent less sugar than regular Lipton Ice Tea. PepsiCo Mexico reduced sugar in both Mirinda and Manzanita Sol by 25 percent per serving.

Our commitment to reduce added sugars continues to be challenging because of consumer preference and a global trend away from existing diet sodas. Consumers in many major markets are demanding natural alternatives to low-calorie sweeteners and, as a result, we have accelerated our research and technology investments to address this demand.

Sweeteners naturally low in calories, such as stevia, are becoming increasingly available. For example, Pepsi Next in Australia, France, Canada and the Netherlands is made with stevia, and is a step toward achieving a meaningful reduction in added sugars.

We continue to explore ways to reduce added sugars through flavor modifiers and sweetener alternatives. We believe this research in the coming years will yield new innovation that hold tremendous promise toward meeting consumer desire for tasty beverages and foods that are better for you.

In 2013, we removed nearly 3,900 metric tons of sodium from our total foods portfolio in key global markets compared to our 2006 baseline.

We have made progress on all of our goals. However, we have more work to do to meet our sodium-reduction goal. We believe that we will be successful, but that it will take more time than originally anticipated. As a result, we have extended the deadline to 2020, which is in line with target dates for reductions in saturated fats and added sugars.

We are also committed to supporting the World Health Organization’s (WHO) sodium-reduction strategies called for in the WHO Global Action Plan for the Prevention and Control of Noncommunicable Diseases 2013–2020, and we continue to work toward further sodium reduction in our products.

To that end, we have achieved noteworthy success in sodium reductions in individual markets. For example, in China and the United Kingdom, we already met the 25 percent sodium-reduction target compared to our 2006 baseline. PepsiCo Brazil, Canada, Mexico and Russia have each achieved more than 10 percent sodium reduction in key brands compared to their respective 2006 baselines. These countries have taken the lead globally in our sodium-reduction efforts and set the example for what is possible as we look to leverage our global scale and integrate their best practices.

We continue to prioritize the reduction of sodium in our flavored products and, in 2013, Mexico reduced sodium in six different products across our Cheetos, Doritos, Tostitos and Fritos brands. Sodium reductions in these six products range from 5 to 38 percent.

Since 2011, Saudi Arabia has reduced sodium in 12 products across Lay’s, Cheetos and Tasali potato chips. In Russia, we achieved a 34 percent reduction in the sodium content of Cheetos since 2006. The sodium in Doritos Nacho Cheese was reduced by 31 percent per 40-gram serving as a result of a two-year European research and development project involving two preferred PepsiCo suppliers challenged with developing a new seasoning.

These accomplishments were made possible, in part, through advances in manufacturing technology and innovative recipes that have allowed us to maintain the great flavors our consumers expect while reducing sodium levels in our products. We continue to explore sodium-reduction opportunities with additional investments in research and development to uncover tools and processes that will aid in our efforts.