PepsiCo names India as key “anchor market” in global restructuring plan

INDIA – PepsiCo Inc., the global leader in snacks and beverages, has designated India as one of its 13 “anchor markets” in a significant global restructuring initiative aimed at driving growth in emerging regions.  

The new strategy, set to be implemented on January 1, 2025, underscores the company’s commitment to investing in markets with high growth potential while addressing challenges in key regions like the United States and China. 

Ramon Laguarta, PepsiCo’s chairman and global chief executive, explained the rationale behind the move: “We will prioritize these 13 anchor markets for investments, services, and capabilities to perform to their potential.”  

Alongside India, the Middle East and China are also part of this critical growth blueprint, with these markets projected to contribute more than 85% of PepsiCo’s future growth. 

As part of the restructuring, PepsiCo will establish a new International Beverages Region to unify global franchise partners under one management structure with profit-and-loss accountability. This includes India-listed Varun Beverages Ltd., which serves as PepsiCo’s bottling partner in the country.  

The aim is to accelerate the international growth of PepsiCo’s beverages business by improving management, innovation, and consumer focus. 

India, in particular, offers immense growth opportunities for PepsiCo.  

Despite competition from rivals such as Coca-Cola, Paper Boat, and Reliance Consumer Products, India’s soft drinks market remains under-penetrated.  

According to a report by ICRIER, the non-alcoholic beverage market in India is expected to grow from Rs 67,100 crore in 2019 to Rs 1.47 lakh crore by 2030. Similarly, IMARC estimates that the Indian snack market, valued at Rs 42,694 crore in 2023, will more than double to Rs 95,521 crore by 2032. 

While PepsiCo experienced struggles in the U.S. and China during the September quarter, India delivered double-digit organic revenue growth.  

The performance of India partially offset a 3% decline in PepsiCo’s convenient foods unit volume in the AMESA (Africa, Middle East, South Asia) region, which was affected by sluggish demand in the Middle East and Pakistan. 

The launch comes after PepsiCo recently announced the acquisition of the remaining 50% stake in Sabra Dipping Company, LLC, and PepsiCo-Strauss Fresh Dips & Spreads International GmbH (Obela), becoming the sole owner of these companies.  

The Sabra joint venture operates in the U.S. and Canada, while Obela focuses on Australia, New Zealand, and Mexico. 

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