Source: Financial Express, 07 March 2023
PepsiCo India is witnessing strong demand from rural India for both its foods and beverages products. “This is largely due to labour migration, increased digital penetration and enhanced distribution of our portfolio and rural India switching from unbranded loose products to branded ones,” Ahmed ElSheikh, President, PepsiCo India, told FinancialExpress.com. The FMCG brand is also looking forward to a strong summer season this year. George Kovoor, Senior Vice President – Beverages, PepsiCo India, said, “We’re excited about what an early onset of summer could signify for the beverage sector in 2023. We are optimistic that our portfolio of well-known brands, such as Pepsi, 7UP, Mirinda, Slice, Sting, and Mountain Dew, will be able to meet consumer demand for refreshing, high-quality beverages to help them beat the heat.”
In its results for the fourth quarter and full-year 2022 ending December 31, 2022, PepsiCo said that its India unit delivered a ‘double-digit organic revenue growth’ in 2022 and has gained market share in the segment in markets, including India. With the inflationary pressures expected to persist in 2023, PepsiCo expects the business to “build on the momentum and strength delivered in 2022”.
In-home consumption remained strong while out-of-home and on-the-go consumption steadily rose in the post covid era. Our product portfolio in foods and beverages are in high demand and the digital consumer category continues to expand with brands building value propositions in a socially networked world thereby significantly driving growth for PepsiCo India. PepsiCo India’s core focus continued to cater to the evolving consumer needs and provide them positive choices by introducing new flavors and launching new products like Pepsi Black, Quaker Oats Muesli and Lays Gourmet among others.
Which regions will bring more sales (urban or rural; metros or tier-II & beyond towns; etc.)?
We continue to witness strong demand from rural India for some time now, for both our foods and beverage products. This is largely due to labour migration, increased digital penetration and enhanced distribution of our portfolio and rural India switching from unbranded loose products to branded ones.
What is your business outlook for the year 2023?
In 2022, we witnessed a seismic shift in omnichannel channel growth with sales significantly outpacing in-store growth across metro cities. As we move forward, the strategy will be to focus on product and consumer experience innovation, prioritizing profitable channels, diligently managing SKUs, and driving execution & productivity across the system. This decade is a decade of India and we are focused on building capabilities, availability and expanding penetration while driving category innovation. With consumers making conscious choices, they are looking for brands that are contributing to the environment at large along with providing affordable products.
What are your thoughts on the Union Budget 2023 for the FMCG segment?
The Union Budget 2023 maintains the country’s robust growth engine with healthy growth predicted on all key metrics. It’s a positive and favorable budget, with the Government’s emphasis on infrastructure, technology, and entrepreneurship boosting economic growth. On the other hand, farmer-centric programs, last-mile connectivity, and digitization will further contribute to the FMCG sector’s multiplier effect.