The Case :
PepsiCo is one of the largest food and beverage companies in the world. It manufactures and sells eighteen brands of beverages and snack foods and generates over $98 billion in retail sales and offers products in over 200 countries. PepsiCo Asia, Middle East and Africa (AMEA), includes all beverage, food and snack businesses in Asia, the Middle East and Africa, excluding South Africa.
Branding & Social Responsibility
Either independently or with partners, PepsiCo AMEA makes, markets, sells and distributes a number of iconic PepsiCo brands, including Lay's, Chips, Kurkure, Doritos, Cheetos and Smith's, many Quaker- branded cereals and snacks, beverage concentrates, fountain syrups and beverage brands, including Pepsi, Mirinda, 7UP, Mountain Dew, Aquafina and Tropicana. “At PepsiCo, we aim to give consumers choices. Our full range of food and beverages are designed to bring a smile to anyone’s face, anytime, anywhere” claims the company when talking about its brands.
Despite the many criticisms for its products that PepsiCo has encountered throughout its long history, it has recognized the importance of social responsibility. As such, PepsiCo continually focuses on sustainable growth and generating healthy financial returns, while giving back to the communities that it serves.
CEO PepsiCo claims that its motto of “Performance with Purpose” consists of three parts: products, the environment, and employees. These areas must be addressed for PepsiCo to be a socially responsible company. As far as “product” is concerned, Pepsi has been criticized for selling such food and beverage products having suspicious, unhealthy and unapproved ingredients. It has also been criticized for contributing to obesity, heart and other health related problem by supplying junk food or snacks. These are available easily at many small or big retail stores at very affordable prices. However, PepsiCo defends itself by claiming that its products are easily available and affordable snack foods and beverages, so these food products may not be the healthiest option, but they do meet the consumers’ needs for easy access and affordable prices. Also, Pepsico has answered criticism with many marketing decisions that are in favor of customer health. The trick for PepsiCo has been to balance the need for convenience with the need for healthier food offerings. PepsiCo (AMEA) has made many changes to its product line, incorporating healthier options and reducing fat, sugars, and other unhealthy ingredients that are common problems with its target customers – kids and adults in the Middle East. Acting in the interests of the consumers, PepsiCo engages in research to develop healthier products for example: baked chips and zero sugar drinks.
Coming to the component- “environment”, PepsiCo views its goal of decreasing its environmental impact not only as socially responsible, but also in the best interest of its stakeholders. For PepsiCo, a large part of its sustainability efforts involves reducing the negative effects resulting from the production and consumption of its products. This includes “going green” (for example, through water conservation and the reduction of waste products) and reducing its carbon footprint. PepsiCo reduces its impact on the environment through various water, energy, and packaging initiatives. This involves recycling water and treatment for reuse. By making changes in its operations, PepsiCo claims to have saved 11 billion liters of water in last decade. Additionally, PepsiCo has reduced the amount of plastic used in its beverage containers, which has significantly decreased the amount of waste sent to landfills.
Finally, Pepsi is actively creating partnerships with such community organizations that are enthusiastic toward increasing recycling efforts for such waste.