A Case Study: Nutrition & Health at PepsiCo - fdf.org.uk Presentation May 2011 Gatenby.pdf · A Case Study: Nutrition & Health at PepsiCo SFDF May 24th 2011 Sue Gatenby PhD Nutrition

A Case Study:

Nutrition & Health

at PepsiCo

SFDF

May 24th 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…

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Gamesabaked snack for women (Mexico)

Smartfood(US)

G2 low calorie electrolyte beverage (US)

PepsiCo acquires Sandora Juices

(Ukraine)Sun Chips baked apple chips (Mexico)

PepsiCo acquiresStacy’s Pita Chipsand Naked Juice (US)

H2Oh!

(South America)

PepsiCo acquiresDuyvis Nuts

(Belgium, Netherlands)

Quaker Weight Control Instant Oatmeal

(US)

Sunbites baked wheat snacks (Spain, Portugal)

PepsiCo merges with Quaker and Gatorade

Frito-Layremoves trans fats (US)

Walkers Crisps reduces saturated fats (UK)

SoBe Lifewater launches naturally sweetene 0-Caloriewith PureVia(Latin America & USA)

Tropicana Smoothie

(UK)

QuakerHigh-Fiber cookie(Mexico)

Frito-Lay converts to sunflower oil (US)

Frito-Lay 100-calorie packaging (US)

PepsiCo acquires Lebedyansky Juices (Russia)

Quaker High Fiber Instant Oatmeal (US)

Elma Sensações Ao Fornobaked chips (Brazil)

Propel vitamin-enhancedfitness water

(US)

Quaker Chewy 90-calorie granola bars (US)

Trop50with 50% less sugar and calories (US)

Sabra Hummus joint venture (US)

Twistoslow-calorie chocolate snacks (Mexico)

Del Hornobaked snacks (Mexico)

New Quaker Hearty Medleysare a new instant multigrain cereal with a heartier texture and real fruits and nuts (US)

The industry has a role in health promotion

to address the major chronic diseases

Major Chronic Diseases

Unhealthy diets Physical Inactivity

Adverse social, economic, and environmental conditions

Direct food industry actions

Indirect food industry actions

Direct philanthropic actions

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3

1

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.

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PepsiCo’s 2010 Annual Report

9

Direct corporate action involves increasing some

nutrients and food groups while limiting others

Nutrients to Encourage

Whole grains

Omega-3 fatty acids

Flax seed oils

Non-starch polysaccharides

Nutrients to Limit

Saturated Fat

Salt

Sugar

Food Groups to Increase

PepsiCo has adopted a science-based framework for food

industry innovation

Sodium• Blood

pressure control

Sweeteners• Obesity

prevention

Total Calories• Obesity

prevention

•Overall health promotion

Low-fat Dairy

Trans Fats• Atherosclerosis prevention

Saturated Fats• Atherosclerosis

prevention

Whole Grains• Cardiovascular

risk reduction

Fruits/Vegetables• Cardiovascular

risk reduction

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

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Transforming the portfolio in UK & Ireland is not a trivial pursuit

The Grocer l 31 July 2010 l www.thegrocer.co.uk

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But, we have a great track record

We’ve been taking a multi-pronged approach for several years to

make our product portfolio healthier

ReformulationNew healthier

products

Acquiring healthier

brands

• SunSeed Oil reduced

sat fat across crisps and

snacks by 70-80%

(removed 40,000 tonnes

of saturates from British

diet)

• Reduced salt in Walkers

crisps and snacks by 25

– 58%%, removing 2400

tonnes salt from UK diet

• Walkers Baked (70%

less fat)

• SunBites (wholegrain)

• Planet Lunch and Paw

Ridge (healthy childrens

ranges)

• Tropicana

• Copella

• Quaker

• V Water

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)

All Pepsi advertising spend

has been on Max since

2005

Introduction of 600ml in no sugar

only represents first marketing

trial to try to encourage

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

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Collective Food Pledges in the Public

Health Responsibility DealCore 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.

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

Responsibility Deal – March 15th 2011

PepsiCo: A diverse range of healthier foods and beverages

Thank you for listening!

Any Questions?

[email protected]