Pepsi 2005 Annual Report Download - page 10

Health and wellness represents one of our most critical opportunities for growth. In capturing
this opportunity, we believe we can play a role in empowering and motivating consumers to
lead healthier lifestyles, and we believe our actions are making a difference.
Our focus on product reformulation — reducing sugar, fat or sodium or adding whole
grains and healthier oils; our commitment to developing new products that support healthier
eating; and our passion for promoting active lifestyles, all illustrate our drive to make it
easier for our consumers to make choices that are part of healthier lifestyles. In 2005, we
became the first major food and beverage company to promote healthier lifestyles — beyond
products — to consumers through a major program called S.M.A.R.T., which encourages
healthier eating and exercise habits.
We realize that doing the right thing for our consumers and employees is doing the right
thing for our business. In fact, our Smart Spot eligible products revenue grew more than
two-and-one-half times faster than the rest of our portfolio in 2005. The Smart Spot symbol
helps consumers find our products that can contribute to healthier lifestyles.
Energy Balance
The solution to the problem of increasing obesity rates is far from simple. It requires consumers
to understand and achieve energy balance — the balance between calories consumed and
calories expended through activity. To help consumers achieve energy balance, we’re
providing them with convenient, healthier products they want to consume and that fit their
busy lifestyles. We also are encouraging them to engage in physical activities they enjoy.
Our Commitment to Healthier Choices
Building on the foundation of brands like Quaker, Tropicana, Aquafina, Baked! and others,
we’re putting more emphasis on making products with healthy ingredients — like oatmeal,
water and juice — more convenient. For example, we’ve combined fruit and juice and made
them more convenient through Tropicana FruitWise, a delicious line of fruit strips, bars and
beverages that deliver one to two servings of fruit in a portable, convenient form.
Our Quaker Milk Chillers product is another example. These dairy products have
reduced calories and are fortified with calcium and seven essential vitamins. Other
examples include:
• Eliminating trans fats from Frito-Lay branded products in 2003. We were the first
major food company to make this change.
• Creating new reduced-sugar Instant Quaker Oatmeal varieties, and adding Take Heart
and Weight Control versions to our instant oatmeal line-up.
• Creating Tropicana Light ’n Healthy orange juice beverage, which has half the sugar
and calories of orange juice.
• Adding a new variety of flavored water to our Aquafina line-up with the introduction of
FlavorSplash. This non-carbonated variety gives consumers a hint of flavor in their
water, without adding calories.
• Building on the success of Propel Fitness Water with the introduction of Propel
Calcium, the first national fitness water with added calcium.
Energy Balance = calories in - calories out
Non-Smart Spot
60%
Smart Spot
40%
PepsiCo North America Revenues
from Smart Spot Eligible Products
% System Revenue
A wide variety of PepsiCo products
carry the Smart Spot symbol to identify
choices that can contribute to
healthier lifestyles.