PepsiCo ‘deseasonalises’ its India business

PepsiCo India is looking to ‘deseasonalise’ its portfolio, moving beyond the traditional summer peak of soft drink demand and investing in wider distribution of energy and sports drinks.

Why it matters

Selling soft drinks in India used to rely on ice buckets but the spread of electrification to rural villages, coupled with better roads, means that year-round distribution is now practical. It also opens up opportunities in different drinks and snacks categories. 

Takeaways

• Thanks in part to government infrastructure investment in roads and electrification, PepsiCo sees “very positive signs” of recovery in rural markets.
• “On foods, innovation has driven incremental growth for top-line growth,” according to the president of PepsiCo India, speaking to Brand Equity.
  
• PepsiCo intends to introduce more premium global brands to the Indian market but the focus will be on localising its portfolio. 
• Seasonal inflation remains a concern as shifting weather patterns affect crop cycles.
• Additionally, selected food commodity export bans designed to control inflation may adversely affect rural incomes (and rural India accounts for around a third of FMCG company sales).