Indra Nooyi insists on healthy alternatives to junk food

Indra Nooyi insists on healthy alternatives to junk food

Since being named the CEO of food and beverage giant PepsiCo, Indra Nooyi has taken the reigns of the company in a non-conformist direction; that of health food company acquisitions. Keeping in mind the increasing public demand for healthier snacks and beverages, which have resulted in a considerable decrease in the sales of both, Nooyi has chosen not only to re-invent existing products, but has also signed deals with health food providers in order to capture maximum market share. Cash Online By increasing PepsiCo’s investment in healthier brands such as Quaker, Tropicana, Naked Juice, and sports drink Gatorade; Nooyi is pushing out the healthiest alternatives for the health-conscious customer. Quaker is known for its healthy breakfast oats, which are now available in a variety of flavours and is a hot seller in the overseas market. Naked Juice and Gatorade are popular names in the beverage market, and the latter is common in the sports industry. Tropicana is considered to be the healthiest beverage among PepsiCo’s current offerings, and is fast growing popular in the international market, which is responsible for close to 50% of its revenue. Aggressive marketing, and sponsorship of key events which introduce the products to a youth consumer base, have also played a role in ensuring its popularity, The recent sponsorship of the Superbowl halftime show, and popular reality singing competition “The X Factor”, has given the healthier aspects of PepsiCo’s products considerable exposure, while tie-ups with singing superstar Beyonce Knowles, also known for her endorsement of Michelle Obama’s “Lets Move!” campaign, have also indirectly contributed to the correlation of the “healthier” Pepsi as a healthy choice for fitness conscious people. Modifications to the actual existing products have been widely shared, starting from lesser salt in their Lay’s brand of potato chips, to the introduction of Stevia, a naturally-sourced sweetener which is used in their Australian line of Pepsi called Pepsi Next. The sale of Doritos’s Locos Tacos, taco shells flavored like Doritos Chips, have sold over 325 million shells at local Taco Bell restaurants in the past year itself, giving PepsiCo a firm foothold in the food service market. Quaker Real Medleys are oats which contain real fruit pieces and nuts, and have won the award for best breakfast product of the year, 2012. Keeping up with these successes, are Trop50 juices from Tropicana, which contain half the calories of regular juices. To add to this already impressive repertoire, is the recent collaboration with the Theo Muller group, which is known for its popular brand of yoghurt. The Muller Quaker joint venture has opened a yoghurt plant in New York at a cost of $206 million, and investment which they feel will pay off, given that the current demand for yoghurt is worth $7billion, and is growing at a rate of 8.5% each year. Nooyi is confident of a smooth and profitable market entry, and is confident that the competitive pricing and other sales-garnering tactics used by rival companies will not deter her vision. Judging by PepsiCo’s current success in the health food sales department, it appears that Nooyi’s strategies are paying off. She has correctly identified areas in which only slight modifications to existing products has increased sales, and has helped retain the company’s hold over both, the healthy as well as the not-so-healthy food and beverage market

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