Nooyi: PepsiCo in business of ‘rip, twist, flip or tear’ products
NEW YORK — As consumers think about the convenience occasion as one continuum, PepsiCo plans to be prepared with both beverages and snacks that meet demand. It’s all part of the company’s Power of One strategy, said Indra Nooyi, chairman and chief executive officer.
In a May 29 presentation at the Sanford C Bernstein Strategic Decisions Conference in New York, Ms. Nooyi said Doritos Tacos Locos have been a shining example of Purchase, N.Y.-based PepsiCo Inc.’s Power of One strategy, in which the company has combined its food and beverage brands. The success of Doritos Tacos Locos was a direct result of PepsiCo’s long-term partnership with Taco Bell, Mountain Dew and all of the beverages PepsiCo has launched with Taco Bell over the years, Ms. Nooyi said.
Looking into the future, Ms. Nooyi said the lines between snacks and beverages will blur even more.
“I don’t know if Naked Juice is a snack or a beverage,” she said. “Many beverages, as they get more viscous, are eating into the snacks occasion, and many snacks that used to be consumed as a dry snack are now being eaten in different ways. So think about our business as being drinkable, spreadable and one-hand consumable.”
For example, she pointed to Quaker Real Medleys, which is a spoonable product that also will be a bar and may someday be a drinkable beverage.
“I think increasingly you are going to find people think about the convenience occasion as one continuum,” she said. “We keep talking artificially about snacks and beverages only because some people used to track this industry differently. I think that is over. This is convenience, and the best way to think about it is all our products, you can consume with a rip, twist, flip or tear, whether it’s the snacks or beverages. And that is the business we are in.”