PepsiCo aligns with the times
Pep+ strategy underpins the company's global transformation plan, writes Kuakul Mornkum
Driving sustainable growth means more than increasing sales — it’s about improving lives throughout the product journey and offering customers better choices, guided by a clear vision.
“PepsiCo is a college of learning and leadership,” said Sudipto Mozumdar, general manager of Indochina Foods and chief commercial officer for Asia-Pacific at Pepsi-Cola (Thai) Trading Co Ltd., the producer and distributor of Lay's potato chips.
Having spent more than 27 years at the company, Mr Mozumdar shared his diverse experiences and the personal growth opportunities made available to him via various business units.
He told the Bangkok Post he spent 21 years in the company's offices in India before moving to Bangkok, where he now oversees operations in Thailand, Vietnam, Laos, Cambodia and Myanmar.
CONSUMER CENTRIC
“We believe that if we are obsessed with the consumer, we will win,” said Mr Mozumdar.
In this region, where he has now served for six years, he has observed the diverse demographic profile of customers in Thailand and other evolving markets.
Gen Z accounts for around 15 million people in Thailand, while there are more than 20 million people in the country aged over 50, he said.
This presents a positive challenge in developing products that appeal to a broad range of age groups, he noted.
In addition, sales channels are also important. In Thailand, the balance of sales between traditional and modern trade is roughly equal.
Modern trade includes supermarkets, hypermarkets, and convenience stores, with the latter making a significant contribution.
Mr Mozumdar said the Thai market is quite dynamic. For example, a single customer might purchase a product from different stores — ranging from hypermarkets and convenience stores to mom-and-pop shops, e-commerce platforms, and online delivery services — at various times of the month, depending on the occasion, he explained.
He emphasised that the company’s R&D teams spend time and put significant effort into gathering insights. Their continuous monitoring of emerging trends enables the company to develop flavours that cater to local preferences.
While managing the complex mix of consumers and age groups may seem like a daunting task, Mr Mozumdar described it as “a fascinating challenge”.
As the media has become fragmented, he said the company employs targeted communication strategies during this digital era, using curated campaigns to reach each consumer group.
“If we flip our perspective, there might be an opportunity hidden within. Our job is to thrive by decoding and identifying these opportunities,” Mr Mozumdar said.
POSITIVE AGRICULTURE
Mr Mozumdar said the company has set a goal of becoming a “global leader in convenient foods and beverages” through the PepsiCo Positive (pep+) strategy.
This global strategy represents PepsiCo's global transformation plan, with sustainability at its core. It includes three pillars: Positive Agriculture, Positive Value Chain, and Positive Choices.
In Thailand, PepsiCo is promoting regenerative farming practices in collaboration with local farmers.
The company promotes the use of technology and innovation to local farmers to increase potato yields, employing tools such as drones for farmland scouting. It also encourages sustainable practices such as the “Dry-Wet Irrigation Cycle” — a technique that balances dry and wet periods during crop growth.
This method helps optimise water use in water-scarce regions without compromising crop health.
Another focus is soil improvement. The company promotes measures such as increasing organic matter through the use of green manure and beneficial microbes, bringing to a halt the practice of burning crop remnants after harvest, and encouraging crop rotation to reduce monoculture and enhance soil biodiversity.
“Since 2022, PepsiCo Thailand has supported farmers in improving soil health across more than 2,000 hectares, creating a strong foundation for more resilient farming practices,” he added.
In collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), a German development agency, PepsiCo Thailand launched a climate-smart agriculture programme in 2021 to promote sustainable potato farming and strengthen the resilience of Thai agriculture.
The programme directly supports more than 4,800 Thai farmers across 38,000 rai of farmland in key potato-growing regions, including Chiang Mai, Lamphun and Tak. Its key focus areas are smart farming technology, efficient water management, and farmer development.
POSITIVE VALUE CHAIN
PepsiCo Thailand operates two snack factories located in Lamphun and within Ayutthaya’s Rojana Industrial Estate.
The plants are equipped with rooftop solar systems that cover more than 90% of the roof space. The company also converts organic waste into electricity and treats and reuses water from its production facilities.
PepsiCo Thailand continues to advance its sustainability goals. Water use efficiency is performing better than the company's targets. Emissions reduction is progressing toward the company's goals. Packaging design and plastic initiatives are on track, reinforcing the company's commitment to a circular economy.
As part of PepsiCo's broader Positive Value Chain agenda focused on reducing emissions, improving water efficiency, and advancing sustainable packaging, the globally launched Greenhouse Accelerator Program (GHAC) reinforces this commitment by empowering startups to pilot innovative, circular solutions.
Since its inception in 2017, GHAC has supported innovation in sustainability, agri-tech, and eco-friendly packaging.
In 2023, a Thai startup was selected as one of 10 Asia-Pacific finalists and piloted a consumer-led recycling initiative using a digital platform to promote circular packaging solutions.
POSITIVE CHOICES
The company aims to offer products that have a positive impact on consumers, communities, and the planet.
Mr Mozumdar said consumers are increasingly health-conscious and interested in healthier alternatives.
To meet this growing demand for healthier snacks, the company introduced Sunbites, a multigrain snack offering a healthier alternative.
The Thai government’s proposed salt tax is currently under development. The Excise Department plans to introduce a new salt tax this year, based on sodium content.
He said the company is adapting its products in Thailand in line with the World Health Organisation’s sodium-reduction guidelines.
“We are very happy to work closely with the government to create solutions benefiting both the industry and the health of the Thai people,” Mr Mozumdar said.
He said the company aims to strike a balance between maintaining the signature flavours of its products and complying with the latest standards.
As part of this effort, PepsiCo has launched reduced-sodium Lay’s products across major retail channels, including hypermarkets and convenience stores. One example is Lay’s Light, which offers consumers a lower-sodium snack option as part of PepsiCo’s ‘Positive Choices’ portfolio.
ROLE MODEL
Mr Mozumdar shared his vision for PepsiCo Thailand, emphasising that the company continues to strive for growth.
However, he noted that this growth extends beyond the company’s bottom line, focusing on improving the lives of stakeholders throughout the supply chain.
As part of PepsiCo's Positive agenda, the company is committed to enhancing lives across the supply chain and caring for the planet.
For its employees, PepsiCo has introduced an Individual Development Plan, which encourages staff to map out their future career paths with the company’s support. The programme aims to groom future leaders and develop expertise in their chosen fields.
“We talk about better solutions and discuss the reasons behind our actions. We voice our opinions fearlessly. And when we succeed, we celebrate. This is PepsiCo’s way,” he said.
He concluded that Thailand has the potential to become a strong example of a country that delivers business growth and the growth of its people while contributing to a better world, serving as a role model for other markets in the future.
Source: Bangkok Post Newspaper
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