Pepsi 2007 Annual Report Download - page 22

To nourish consumers is our fundamental commitment.
It begins with product innovation and transformation,
extends to marketing and labeling commitments that
make the smart choice an easy choice for consumers,
and continues with support for research and develop-
ment programs to advance public health around the
world. Finally, we balance the entire energy equation
through community outreach programs designed to
empower and motivate consumers to adopt healthier,
more active lifestyles.
Product Innovation
We have been reinventing our brands
to meet consumer needs for healthier
lifestyles since we introduced Diet Pepsi
in 1964.
As we grow, PepsiCo will continue our
transformation with a systematic plan to
reduce sodium, added sugar and satu-
rated fats in our products. We start with
science and authoritative statements
from the World Health Organization,
the Food and Drug Administration and
the U.S. National Academy of Sciences
for identifying how we should best
focus our efforts. We then look at
nutrition-based standards including total
calories, fat, carbohydrate and protein
as well as vitamins and minerals, and
then reformulate our products to offer
smart choices that contribute to an
overall healthier diet and lifestyle. We
don’t stop there, because we also look
for ways to add wholesome ingredients,
such as fruit, whole grains and fiber to
many of our products.
Our transformation as a good company
with nourishing products, from snacks
to healthier treats, gained momentum
across all of our businesses in 2007:
• We reduced saturated fats in our
Frito-Lay potato chip and Walkers
crisp brands, by converting to
sunflower oil.
• We expanded our baked snacks in
Brazil and introduced low-fat bread
snacks in Chile, Puerto Rico, Spain,
Turkey and Saudi Arabia.
• Tropicana promoted cardiovascular
health, by becoming the first
national orange juice to include
Omega-3s, the fatty acids known for
helping to promote heart health.
• Frito-Lay introduced Flat Earth fruit
and vegetable crisps that combine
great taste and nutrition in a break-
through snack with a ½ serving of
fruits or vegetables baked into
each ounce.
• Our Gamesa-Quaker business in
Mexico launched a new line of
oat-based cookies and snacks, and
our South Africa business launched
a new health snack line called
Sunbites pretzels.
Marketing and Labeling
Our commitment to nourish is fully
embraced in our marketing and labeling
programs around the world. Last year,
PepsiCo was a founding member of
a voluntary U.S. food and beverage
industry initiative that redefined how we
market products to children under 12.
Today, less than 1% of PepsiCo’s total
advertising budget in North America
is allocated for advertising to kids, and
100% of that advertising is devoted
exclusively to Smart Spot products.
PepsiCo Europe has recently made a
similar advertising and school marketing
Quaker Mini Delights multi-
grain cakes are for calorie-con-
scious consumers who say they’re
looking for a satisfying snack option that
tastes great and helps them stay on track.
Mini Delights bring three new benefits to
the snack category: taste indulgence,
90-calorie portion packs and plenty
of pieces in every pouch.
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