Monday, July 22, 2024

“PepsiCo wants to move from being a snack company to a food conglomerate.”

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The multinational company plans to grow by more than 4% this year in Spain, where it is accelerating investments and will reach 40 million in 2025.

In the midst of a battle between white label and manufacturer, Paul Codina, General Manager of PepsiCo in Southwestern Europe, does not hide or launch attacks on the type of product that he considers “complementary” to PepsiCo references. “The white mark “It forces us to present our best version,” explains the Spanish manager, who has just finished a year at the helm of the American multinational in southwestern Europe.

In an interview with EXPANSIÓN, the first he has given since his appointment, Codina points out that Distributors’ signatures It forces manufacturers to maintain the highest standards of quality and innovation. “They keep us alive and force us to sharpen our pencils,” he says. “They are strong competitors.”

Along these lines, Codina highlights that private label will continue to rise, so his view is that PepsiCo can grow more through categories with innovative products rather than taking share from distribution companies.

The manager does not avoid arguing with him CarrefourThis is after the French group withdrew its products from… PepsiCo It was removed from its shelves in France on the grounds of an “unacceptable increase in prices.” His view is that both companies maintain a “decade” relationship, with the first quarter “not being the best”, although relations have now resumed and both companies are in a “good position”.

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Regarding the weight of the white label, Codina points out that one should not complain, but rather attract the customer. It is not unlikely that large chains will continue to remove references from their shelves, so “we have to gain space on the shelves.”

Codena’s message is in line with the company’s strategy, which aims to enhance the company’s growth in the next five years. The main objectives of this plan are: Growing in size and gaining market share.

To achieve this, we will focus on accelerating digital transformation, in addition to policy Maximize savingswith a ten point reduction in costs, and Reinvestment, with an estimate of 40 million in 2025 in Spain. Another strategic axis is sustainability, with the goal of reducing gas emissions by 40% by 2030 and achieving carbon neutrality in 2040.

Finally, the fourth point in the strategy is product innovation and the introduction of new segments, an aspect to which the company will devote significant resources. As part of its innovation plan, PepsiCo wants to “move from being a snack company to being a food company,” which opens up many opportunities for growth.

The idea is for this transformation to take place internally through its operations, without resorting to purchasing specialized external companies. An example of this change is tortillas made with the brand’s own potato chips. for any.

On the other hand, Codina points out that the market and the company are still facing an environment of strong inflation, which has caused food prices to rise significantly.

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Growing 4% annually

The director expects the company’s business in Spain to grow by more than 4% on average in the coming years, mainly through volume. One factor that will contribute to this progress is PepsiCo’s “price containment” agenda, to which a significant portion of investments will be allocated. “This year we are passing prices below the CPI,” he explains.

In the environmental context, PepsiCo chose a Spanish factory to be a leader in reducing emissions. center VictoriaWhich makes drinks cup And Pepsi, will be emissions neutral in 2025, which will require an investment of $5 million. They join 27 people who have been hired at the said plant in the past five years.

The Spanish brand Alvalle will “pivot” into new market segments

American giant PepsiCo has the Spanish brand in its portfolio ValiIn which he has high hopes for future growth and will bring new developments soon.

Paul Codina, General Manager of the Southwest Europe Region, confirms that Alvalle is a “leader and reference” in the gazpacho sector. However, he stresses that PepsiCo is working for the brand, which manufactures its products in Murcia, to “pivot” to other market segments, so he expects there will be “interesting news” soon to further develop the brand.

Another strategic axis of Alphale is Sustainability. The company has focused on significantly reducing water consumption at its Murcia plant, an area that is particularly sensitive to the consumption of this resource.

Codina highlights Alvalle’s strong presence in France, which is important even as it is in Spain, and adds that exploration will continue in other markets.

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“Next year, we are working on improving the portfolio,” says the manager, noting that the group’s focus is on making products with better nutritional value. So, remember that in the last five years it has decreased 40% sugar in your drinks Lay’s has positioned itself as a brand of lower-salt potato chips.

The company’s president in Southwestern Europe confirms that PepsiCo will continue to work in this line with new developments in the brand Doritoswith an improvement in its nutritional profile, as well as in Cheetos And also in the drinks area with Pepsi.

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