A Case Study: Nutrition & Health at PepsiCo SFDF May 24 th - PowerPoint PPT Presentation

A Case Study: Nutrition & Health at PepsiCo SFDF May 24 th 2011 Sue Gatenby PhD Nutrition Director PepsiCo Europe

Our business  PepsiCo UK & Ireland is a £1.5bn food and drink business responsible for leading brands including Walkers, Tropicana, Quaker Oats and Pepsi (bottled in the UK by Britvic).  We employ 5,500 people across 13 sites in the UK.  We invested £16million in a new R&D centre in Leicester where the focus is on developing healthier products. Key PepsiCo manufacturing sites

Our brands

We are a global business in transition… Quaker Chewy Frito-Lay 100- 90-calorie calorie Propel vitamin- granola bars (US) packaging (US) enhanced fitness water SoBe Lifewater Del Horno launches naturally (US) baked snacks Frito-Lay converts sweetene 0-Calorie (Mexico) to sunflower oil (US) with PureVia (Latin America & USA) Walkers Crisps Elma reduces saturated Sensações fats (UK) Ao Forno Trop50 baked chips Twistos Frito-Lay with 50% less (Brazil) low-calorie removes sugar and chocolate snacks trans fats calories (US) (Mexico) (US) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PepsiCo Sunbites baked Quaker merges with wheat snacks High-Fiber Quaker and (Spain, Portugal) Quaker Weight cookie G2 low Gatorade Control Instant (Mexico) calorie Oatmeal Gamesa electrolyte baked snack New Quaker (US) beverage for women Hearty Medleys (US) PepsiCo (Mexico) are a new instant PepsiCo acquires Tropicana multigrain cereal H 2 Oh! acquires Duyvis Nuts Smoothie with a heartier Sandora (South texture and real (Belgium, Juices (UK) fruits and nuts (US) America) Netherlands) (Ukraine) PepsiCo acquires Sun Chips baked Stacy’s Pita Chips apple chips Quaker High Fiber PepsiCo acquires and Naked Juice (US) (Mexico) Lebedyansky Instant Oatmeal (US) Smartfood Juices (Russia) (US) Sabra Hummus joint venture (US)

The industry has a role in health promotion to address the major chronic diseases Major Chronic Diseases 1 Physical 2 Unhealthy diets Inactivity 3 Adverse social, economic, and environmental conditions Direct food industry actions Direct philanthropic actions Indirect food industry actions

Food industry actions – healthier portfolios  Improve the nutrient content and quality of foods and beverages through reformulation of existing products.  Control nutrients of public health concern such as (added) sugars, sodium, trans fats, and also total calories per serving.  Introduce new products that enhance positive nutrition by the addition of increased amounts of whole grains, fruits and vegetables, nuts and seeds, and low-fat dairy in accordance with dietary guidelines.  Expand options for reducing portion size through the use of smaller package sizes, and development of products that address satiety and appetite control.  Invest in R&D to enable technological breakthroughs to accelerate product reformulation.

Food industry actions  Adopt established labelling policies, and adopt established advertising and marketing policies, especially as they apply to children.  Support nutrition education and physical activity programs with an emphasis on energy balance.  Invest in workplace wellness initiatives.

PepsiCo’s 2010 Annual Report 8

Direct corporate action involves increasing some nutrients and food groups while limiting others Nutrients Food Groups Nutrients to Limit to Increase to Encourage Omega-3 Sugar fatty acids Non-starch polysaccharides Salt Flax seed oils Whole grains 9 Saturated Fat

PepsiCo has adopted a science-based framework for food industry innovation Fruits/ Whole Grains Vegetables • Cardiovascular • Cardiovascular risk reduction risk reduction Low-fat Dairy • Overall health promotion Sweeteners Sodium • Obesity • Blood prevention pressure control Saturated Fats Total Calories • Atherosclerosis • Obesity prevention prevention Trans Fats • Atherosclerosis prevention

PepsiCo human sustainability goals regarding key food and beverage brands  Increase the amount of whole grains, fruits, vegetables, nuts, seeds, and low-fat dairy.  Reduce the average amount of sodium per serving by 25% by 2015.  Reduce the average amount of saturated fat per serving by 15% by 2020.  Reduce the average amount of added sugars per serving by 25% by 2020 .

Our Global Goals and Commitments in the marketplace are also important  Display calorie count and key nutrients on packaging by 2012.  Advertise to children less than 12 years of age only products that meet our global science-based standards.  Eliminate the direct sale of full-sugar soft drinks in primary and secondary schools around the globe by 2012.  Increase the range of foods and beverages that offer solutions for managing calories, like portion sizes.

Our Global Goals and Commitments in the community are also important  Assure affordable, nutritionally-relevant products for underserved and lower- income communities.  Invest in initiatives to promote healthier communities, including enhancing diet and physical activity programs.  Integrate our policies and actions on human health, agriculture and the environment.

Public health is a top political priority in the UK Legislators have strong mandates Many influential voices

Transforming the portfolio in UK & Ireland is not a trivial pursuit 15 The Grocer l 31 July 2010 l www.thegrocer.co.uk

But, we have a great track record We’ve been taking a multi-pronged approach for several years to make our product portfolio healthier New healthier Acquiring healthier Reformulation products brands • SunSeed Oil reduced • Walkers Baked (70% • Tropicana sat fat across crisps and less fat) • Copella snacks by 70-80% • SunBites (wholegrain) • Quaker (removed 40,000 tonnes • Planet Lunch and Paw of saturates from British • V Water diet) Ridge (healthy childrens ranges) • Reduced salt in Walkers crisps and snacks by 25 – 58%%, removing 2400 tonnes salt from UK diet 16

But we recognised the need to go further….. “Our future profit & growth will be driven by healthier products” “By 2020 our business will be based on delivering fruit, vegetables, wholegrain and fibre” http://www.pepsico.co.uk/health

Our commitments are designed to be challenging…. Key Pledges: 50% of our savoury snacks will be baked or include positive nutrition by 2015 65% carbonated soft drink can and bottle sales will be “no sugar” by 2015 A calorie cap of 160kcal across single serve savoury snacks without positive nutrition by 2015 To deliver 1.8bn servings of fruit and vegetables and 1.7bn servings of wholegrain each year by 2012 http://www.pepsico.co.uk/health

Progress to date 62% of packaged sales of Pepsi & 7UP are no sugar, up from 61% in 2008 (target 65% in 2015 ) Introduction of 600ml in no sugar All Pepsi advertising spend only represents first marketing has been on Max since trial to try to encourage 2005 consumers to switch 2% reduction in sugar level of regular Pepsi already achieved

Progress to date Magic Breakfast expect to meet our commitment to provide breakfast to 6000 children this year Average 11.7% salt reduction achieved in 9 flavours of Walkers Core. MSG removed from 10 Walkers Core flavours, from Sensations & Baked

Collective Food Pledges in the Public Health Responsibility Deal Core Commitment  We will encourage and enable people to adopt a healthier diet. Collective Pledges  Provide calorie information for food and non alcoholic drinks for our customers in out of home settings.  Commit to salt reduction targets for the end of 2012 agreed by the Responsibility Deal, which collectively will deliver a further 15% reduction on 2010 targets .  These targets will give a total salt reduction of nearly 1g per person per day compared to 2007 levels in food.  Remove, artificial trans fats from products by the end of 2011. 21

Responsibility Deal – March 15 th 2011 The Responsibility Deal forms a natural part of our on-going journey to reshape our product portfolio. By introducing this initiative, the Govt has recognised that the Industry has the reach to influence the diets of hundreds of thousands of people in the UK and make a profound difference, both through our products and through our workplace. Today’s launch of the Responsibility Deal sees the start of a process to help people balance the “energy in, energy out” challenge of modern life. Richard Evans President, PepsiCo UK and Ireland

PepsiCo: A diverse range of healthier foods and beverages

Thank you for listening! Any Questions? sue.gatenby@pepsico.com