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Plant-based Nutrition For Healthy Ageing: How PepsiCo Is Striving To Meet The Health-Conscious Needs Of Evolving Consumers The views expressed in this report are those of the author and do not necessarily represent position or policy of PepsiCo, Inc. PepsiCo R&D | Technology Ventures | Alliance Management Siow Ying Tan, Ph.D.

Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

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Page 1: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Plant-based Nutrition For

Healthy Ageing:How PepsiCo Is Striving To Meet The

Health-Conscious Needs Of Evolving

Consumers

The views expressed in this report are those of the author and do not necessarily represent position or policy of PepsiCo, Inc.

PepsiCo R&D | Technology Ventures | Alliance Management

Siow Ying Tan, Ph.D.

Page 2: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Agenda

Want Briefs

Nutrition Criteria

Why Plant

Nutrition?Overview

Page 3: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

PepsiCo is a global food and beverage powerhouse.

Our broad range of more than 3,000 delicious products offers consumers

convenient, nutritious and affordable options in nearly every country around the world.

Who PEP Is?

Brands

22billion-dollar

brands

Performance

~$63 billionrevenue

Scale

>200 countries

& territories

People

More than 250,000employees

G L O B A L F O O D & B E V E R A G E S

Page 4: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

PEP Has A Strong Portfolio Of Iconic Brands…

Page 5: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

PEP Brands Have Leading Global Positions In Attractive Categories…

Page 6: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Linking Consumer Drivers Leads To Demand Driven Growth

Demand Divides into 4 Distinct Clusters Which Frame the Landscape

Page 7: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

PEP Focused On Solutions Across The Value Chain

W I N N I N G w i t h P U R P O S E

Page 8: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

How does PEP stay relevant to the changing and ageing consumer?

Portfolio Transformations Via Acquisitions And Innovations

Page 9: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Want Briefs

Nutrition Criteria

Why Plant

Nutrition?Overview

Page 10: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

ME

GA

TR

EN

DS

• Provide portfolio of

healthier choices (positive

ingredients)

• Simplify list of ingredients

and processes

• Expand from mainstream

to premium segments

• Address needs of new

comers to consuming class

IMP

LIC

AT

ION

S

• Transparency

& sustainability

• Role of brands

• Provide balance between

convenience and health

• Availability in right

packaging/channels

Increasing women

participation in the workforce

& wealth

Aging populations Income bifurcation Rise of millennials

In The Midst Of Global Demographic Changes

Page 11: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Vegetables

Grains

Sources Of Plant Nutrition Are Defined As:

Legumes & PulsesNuts

Sea Vegetables & AlgaeFruit

Spices

LIV

ING

DO

RM

AN

T*

*Emergent narratives around these dormant food groups seem to be about enlivening or activating

Fungi(technically not

photosynthesizing but

nutritionally and

texturally critical to new

plant based eating)

Herbs

All photosynthesizing food sources (living or dormant) that convert light

energy into nutritional food sources; Exception of fungi

Page 12: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

The World Trending Toward Plant

12

Exclusive AnimalReducer/Avoider

Exclusive Plant Increaser Both ReducingAnimal/Increasing Plant

Neither ReducingAnimal/Increasing Plant*

Globally, most people are taking part in the trend towards plant. Majority says they

are increasing plant and/or decreasing animal and half are doing both.

Avoid

Animal

No Change in

PlantIncreasing

Plant

No Change in

Animal

Reduce

Animal

Increasing

Plant

No Change in

Plant

No Change in

Animal

*Those who are neither reducing animal consumption nor increasing plant consumption were screened out of the

study and are not included in the remainder of the report analysis.

Page 13: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Most Are Both Increasing Plant and Reducing Animal

Australia Brazil China India Mexico Russia Sweden UK USA

Both Increasing Plant and Reducing/Avoiding Animal Exclusive Plant IncreasersExclusive Animal Reducers/Avoiders

*Those who are neither reducing animal consumption nor increasing plant consumption were screened out of the

study and are not included in the remainder of the report analysis.

Page 14: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Plant Is Not A Fleeting Trend

Two-thirds of those that are both increasing plant AND reducing animal view this

way of eating as permanent.

Exclusive AnimalReducers/Avoiders

Exclusive PlantIncreasers

Both IncreasingPlant/Reducing

Animal

It may not last I’m just exploring

I’m going to try it for a while and see

how I feel about it

I’m hoping it’s permanent, but

I’m not sure yet if I will keep it up

I know it’s permanent

• How do you view your current diet? (Select One)

Page 15: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

But They Aren’t “Vegetarian”

In most countries, less than 10% call themselves “vegetarians.”

• Do you consider yourself a “vegetarian”?

Australia Brazil China India Mexico Russia Sweden UK USA

Yes, I consider myself a "vegetarian" No, I use another word to describe my diet

No, there’s no label for it, just my preferred choice of eating No, I regularly eat meat

Page 16: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

It’s A Dietary Choice, Not A Label

Identifies as Vegetarian Vegan/Vegetarian(Based onBehavior)

Even though 16% of respondents in the study are Vegetarian, based on

traditional definitions only 10% would call themselves Vegetarian. A large

portion just don’t have a label.

Do you consider yourself a vegetarian?

Total

Yes 10%

No, I use another word to

describe my diet3%

No, there’s no label for it, just

my preferred choice of eating39%

No, I regularly eat meat 47%

• Do you consider yourself a “vegetarian”?

Page 17: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Under 40 Most Likely To Choose Plant

Choose foods with added plant-based healthyingredients

Choose beverages with added plant-based healthyingredients

Choose supplements because they contain plant-based healthy ingredients (e.g., omegas from flaxinstead of fish, protein from soy instead of whey)

Total 18-29 30-39 40-49 50-65

It’s younger consumers who are most likely to choose foods, beverages and

supplements with added plant.

• How often do you do each of the following?

Page 18: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Foods And Snacks Garner Most Demand For Added Plant

18

• It is important to have added plant in Food, Snacks, Beverages or Supplements?

But there is a high level of interest for added plant in beverages and

supplements as well.

Foods Snacks Beverages Supplements

Total 18-29 30-39 40-49 50-65

Page 19: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

What’s Driving The Trend Towards Plant

The three primary drivers behind choosing Plant are those who want Daily

Living benefits like energy, digestive health and clean eating; Health related

benefits like heart health and immunity; and Socially driven benefits like

sustainable ingredients and environment.

HealthHeart health

Prevents illness

Builds strong bones

Live longer

Skin health

Daily LivingHealthier product

Avoid toxic chemicals

Energy

Digestion

Clean eating/Safer

SocialSustainable ingredients

Lifestyle preference

Environment

Animal treatment

Influence of family/peers

• Please rate the importance of each of the following in driving your plant-based food/beverage choices.

Page 20: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

How Plant Compares To Animal

20

Most shoppers don’t feel Plant provides that many benefits over animal products.

Health is the primary beneficial area of Plant with just over half saying it’s healthier,

but less than one-third or fewer view plant as better than animal on other factors like

nutrition, quality, freshness, and particularly taste.

Healthier Safer Chemical

Free

More

nutritious

Fresher Better

Quality

Worth a

premium

Better

Tasting

53

%

36

%

30

%17

%

• For each of the following words or phrases, please check each one that

you feel applies to plant-based foods/beverages

Page 21: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Why Not More Plant?Why Continue to Use

Animal?

#1

Taste and Enjoyment

#2

Too Expensive

#3

Availability

#1

Taste

#2

Protein

#3

Key Ingredients (Iron,

Protein, B Vitamins)

• Which of the following are the main things that keep you from using plant-based foods/beverages more often • Please rate how important each of the following are for keeping some animal-based products in your diet

Page 22: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Want Briefs

Nutrition Criteria

Why Plant

Nutrition?Overview

Page 23: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

PEP Nutrition Criteria

The PepsiCo Nutrition Criteria for each category includes ranges that are applied to products based

on dietary consumption patterns, food safety and other factors as evaluated by our product

development teams. Most products are expected to meet entry criteria for each category while our

Everyday Nutrition products are held to higher standards and other products are categorized as

indulgent and evaluated for renovation opportunities.

Our criteria are comparable with those from the WHO and The Healthy Choice standards.

*Beverages Category (for PepsiCo criterion assuming 1cc liquid weighs 1g)

**Snacks Category (for PepsiCo criterion assuming typical serving size of 28g serving)

***Based on 2,000kcal diet = 22g per day of sat fat

Added Sugars 10% of total energy contribution Total sugars ≤ 4.5g/100g* 0g - 7g/100ml*

Sodium < 5g salt (equals < 1.966g sodium) ≤ 400mg / 100g** 1.0mg - 1.6 mg/kcal**

Saturated Fat < 10% of total energy contribution*** ≤ 6.0g/ 100g** 0.8g- 1.7 g/100 kcal**

Page 24: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

What Is Included In The PEP Nutrition Criteria (PNC)?

Nutrition guidelines covers all beverage, snacks and nutrition

brands.

• The criteria that apply to our nutrition brands include both Nutrients to Limit

and specific guidelines for Food Groups and Nutrients to Encourage.

For our snack and beverage brands we have specific guardrails for nutrients

to limit.

A set of criteria specifically for foods and beverages was developed for

children.

https://www.pepsico.com/docs/album/a-z-topics-policies/pepsico-nutrition-criteria.pdf

Page 25: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

The PNC for each category includes:

• Standards for Nutrients to Limit – Nutrients that have been well-established as dietary

factors that can contribute to the risk of certain non-communicable diseases, when

consumed in excess. They include: o Saturated Fat o Trans Fat o Sodium o Added Sugars

• Standards for Food Groups to Encourage – Food groups that have been well-

established as contributing to healthier diets. They include: o Fruits o Vegetables o Whole Grains o Low Fat Dairy o Nuts o Seeds o

Legumes/Pulses

• Standards for Nutrients to Encourage – Nutrients that have been identified as being

commonly under-consumed in a given population. They can vary by market or region,

and are often called “shortfall nutrients.” Depending on population needs, they can include: o Iron o Fiber o Specific Vitamins and/or Minerals

such as Calcium or Potassium

https://www.pepsico.com/docs/album/a-z-topics-policies/pepsico-nutrition-criteria.pdf

PEP Portfolio Of Snacks, Beverages And Nutrition Brands

Was Divided Into 20 Categories…

Page 26: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

PEP Site Lists Category Examples…

https://www.pepsico.com/docs/album/a-z-topics-policies/pepsico-nutrition-criteria.pdf

Page 27: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Want Briefs

Nutrition Criteria

Why Plant

Nutrition?Overview

Page 28: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

PEP Seeking Plant Nutrition Tech via NINESIGHTS Gallery

https://ninesights.ninesigma.com/servlet/hype/IMT?userAction=Browse&documentId=40f9584aadd206fe5c2e43f49ff55dd8&tem

plateName=&documentTableId=1008809492095619862

Page 29: Plant-based Nutrition For Healthy Ageing...Overview PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient,

Questions?Siow Ying Tan

[email protected]

The views expressed in this report are those of the author and do not necessarily represent position or policy of PepsiCo, Inc.