Pepsi invests $256 million in a new plant, “reinventing healthy snacking” strategy.
As consumers resist sugary drinks, healthy snacking has become a critical business segment for PepsiCo to expand. In recent years, PepsiCo has been expanding its healthy snacking portfolio to consumer demand for healthy snacks.
As part of its “Reinventing Healthy Snacks” strategy, PepsiCo recently plans to invest $256 million in a food manufacturing facility in Poland, its largest and most sustainable food manufacturing facility in Europe. PepsiCo’s goal is to increase sales of healthy snacks, making it the fastest-growing category over the next four years. PepsiCo also hopes to expand its healthy snacks portfolio to $1 billion by 2030.
It is understood that the new plant will produce a range of Pepsi’s snacks, including snack brands such as Ritz and Doritos, in response to growing health demand in the European market. The plant, which will export to more than 20 European countries, is expected to be completed by 2025 to become carbon neutral by 2035 fully. Through this plant, Pepsi will significantly expand its sustainable agriculture program in Poland.
PepsiCo Poland’s managing director emphasized that healthier snacks are at the heart of PepsiCo’s growth and that consumers are central to shaping its portfolio. As part of this program, PepsiCo aims to increase sales of snacks rated B or higher on the Nutri-Score nutrition labelling system more than tenfold by 2025, which will make its healthy snacks the fastest growing food category over the next four years. Nutri-Score is understood to be a nutrition label that assesses the overall nutritional quality of foods based on a five-colour coded scale from A to E.
PepsiCo is poised to focus more on healthier products. “We believe healthy products will be key to the company’s long-term growth going forward, and we are already looking to add more healthy products to our portfolio.” PepsiCo expects sales of its health products to enter a period of high growth by 2025.
To meet the healthy consumer trend, PepsiCo began its acquisitions in the health sector back in 2018, from healthy dried fruit maker Bare Food to Health Warrior, reflecting PepsiCo’s pursuit of consumer food products in the health sector.
Previously, several of PepsiCo’s snack brands have also launched new organic health products, such as organic potato chips and organic Doritos series, all made with healthy ingredients such as black beans or peas. Since 2006, the proportion of healthy food and beverages in PepsiCo’s total revenue rose from 38% to 50%.
PepsiCo recently launched Lay’s Oven Baked potato chips in Poland, which contain 50 percent less fat than regular potato chips. jaszczyk added: “The product meets consumer demand for healthier snacks, while also satisfying the most important taste needs of consumers.”
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