PepsiCo 2009 Annual Report

Home » Performance with Purpose: Introduction » Human Sustainability

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  1. Performance with Purpose
  2. Performance
  3. Human Sustainability
  4. Environmental Sustainability
  5. Talent Sustainability
To The people of the world… It's a promise to encourage people to live healthier by offering a portfolio of both enjoyable and wholesome foods and beverages.

Our Goals and Commitments

Products

Provide more food and beverage choices made with wholesome ingredients that contribute to healthier eating and drinking.

  1. Increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in our global product portfolio.
  2. Reduce the average amount of sodium per serving in key global food brands, in key countries, by 25 percent by 2015, with a 2006 baseline.
  3. Reduce the average amount of saturated fat per serving in key global food brands, in key countries, by 15 percent by 2020, with a 2006 baseline.
  4. Reduce the average amount of added sugar per serving in key global beverage brands, in key countries, by 25 percent by 2020, with a 2006 baseline.

Marketplace

Encourage people to make informed choices and live healthier.

  1. Display calorie count and key nutrients on our food and beverage packaging by 2012.
  2. Advertise to children under 12 only products that meet our global science-based nutrition standards.
  3. Eliminate the direct sale of full-sugar soft drinks in primary and secondary schools around the globe by 2012.
  4. Increase the range of foods and beverages that offer solutions for managing calories, like portion sizes.

Community

Actively work with global and local partners to help address global nutrition challenges.

  1. Invest in our business and research and development to expand our offerings of more affordable, nutritionally relevant products for underserved and lower-income communities.
  2. Expand PepsiCo Foundation and PepsiCo corporate contribution initiatives to promote healthier communities, including enhancing diet and physical activity programs.
  3. Integrate our policies and actions on human health, agriculture and the environment to make sure that they support each other.

View details and our progress

Products

  1. In 2010, we anticipate adding 22 million pounds of whole grain to the American diet. An example of our efforts was an action by Frito-Lay to modify its process for making Tostitos tortilla chips to retain more of the whole grain in its most popular Tostitos products.
  2. PepsiCo has become the No.1 juice business in Europe/Russia following the acquisition of both Lebedyansky and Sandora, and we continue to expand in India and the Middle East.
  3. In 2009, Gamesa-Quaker Mexico delivered 1.4 billion servings of whole grain through Gamesa-Quaker snacks, oats and cereals.
  4. In 2008, PepsiCo UK and Ireland delivered 1.669 billion servings of whole grain (16g whole grain per serving) via Quaker cereals and snacks and whole grain SunBites.

View details and our progress

Products

  1. Since 2006, PepsiCo has made progress in reducing average sodium content in key global food brand offerings. PepsiCo will continue to invest R&D resources to explore innovative approaches to reducing the sodium in key global food brands, in key countries, by 25 percent by the year 2015 while maintaining the great taste that people expect.
  2. In the UK, Walkers has reduced the sodium content of many of its crisps and snacks–including Quavers, Wotsits, and French Fries–between 25 percent and 55 percent.
  3. Smith's Snackfood Company, PepsiCo's Australian snack division, committed to a 25 percent reduction in sodium over a five-year period in 2007. Within the first two years, the company reduced sodium by 10 percent.
  4. Frito-Lay is working to reduce sodium across its potato chip portfolio–including Lay's, Ruffles, Lay's Kettle and Wavy Lay's–by up to 25 percent.

View details and our progress

Products

  1. PepsiCo has been reducing saturated fat in its key global food brands since 2006 as part of its commitment to reduce saturated fat per serving in key global food brands, in key countries, by 15 percent by 2020.
  2. In the UK, by switching to Sunseed™, a high oleic sunflower oil, Walkers has significantly reduced the level of saturates in Walkers crisps from 70 percent to 80 percent. It has made similar progress with other snacks, removing more than 40,000 tons of saturates from the UK diet from 2005-2008.
  3. Frito-Lay led the way in 2006 when it reduced saturated fats by switching from cottonseed oil to sunflower oil, which is much lower in saturated fat. The removal of cottonseed oil has reduced the saturated fat content in Lay's and Ruffle's Potato Chips by more than 50 percent, removing a total of more than 100 million pounds of saturated fat from the American diet since the company began using oils lower in saturated fat.

View details and our progress

Products

  1. To achieve this goal, we are enhancing our portfolio of great tasting, lower-calorie beverage offerings within our key brand portfolios like the Pepsi trademark which includes Pepsi, Diet Pepsi, Pepsi Max, Pepsi Kick, Cherry Pepsi, etc.
  2. PepsiCo is committed to further investing in R&D resources to find innovative ways to reduce added sugar in our key global beverage brands while maintaining the great taste that people expect from our products.
  3. In 2008, Gatorade launched G2, a low-calorie sports beverage that has half the sugar but still delivers functional hydration benefits that athletes need to compete.

View details and our progress

Marketplace

  1. In the U.S., PepsiCo will display total calorie counts on the front of all beverage containers up to and including 20-ounce packages by February 2012. On beverage containers larger than 20 ounces, PepsiCo will display calories per 12-ounce serving on the front of non-juice products, and calories per 8-ounce serving on the front of juices and juice products. PepsiCo is committed to prominently displaying calorie information in line with the U.S. Food and Drug Administration (FDA) guidance and regulations.
  2. Throughout the European Union, we introduced nutrition labeling to help consumers understand the percentage of the Guideline Daily Amount (percent GDA) of calories, sugars, fat, saturated fat and salt that is contained in a portion of our products. All packages feature calorie values per portion on the front of the package. We display all GDAs on the front of the pack for foods and snacks. For beverages we display calorie GDA, at the minimum, on the front of the pack, with the other GDAs being displayed either on the front or back of the pack. Australia and New Zealand also have implemented Daily Intake Guide (percent DI) labeling, a similar front-of-package label scheme.

View details and our progress

Marketplace

  1. PepsiCo has joined a group of global food and beverage manufacturers in adopting a worldwide voluntary commitment to only advertise to children under 12 the products that meet specific nutrition criteria. This policy applies to paid third-parties on television, print or internet directed towards children where the target audience of children under 12 consists of 50 percent or greater. The policy is currently in effect for beverages worldwide and will become effective for all snacks and food globally by January 1, 2011.
  2. We have adopted national voluntary advertising pledge programs to implement our policy in Australia, Brazil, Mexico, South Africa, Russia, Thailand, the United States, Canada, and the European Union. PepsiCo had already achieved 96 percent compliance in 2009 in those countries where the company policy is in force, according to the global audit firm, Accenture. By the end of 2010, we expect all businesses to be fully compliant.

View details and our progress

Marketplace

  1. PepsiCo has a global sales and distribution policy that aims to help schools offer a wider range of low calorie and nutritious beverages to their students. This global policy limits the direct sale of full-sugar soft drinks and the sale of products that meet strict nutritional criteria to primary and secondary schools. PepsiCo plans to fully implement this policy by January 1, 2012.
  2. In May, 2006 PepsiCo and other beverage industry leaders worked with the Alliance for a Healthier Generation–a joint initiative of the American Heart Association and the William J. Clinton Foundation–to establish guidelines that limit portion sizes and reduce the number of beverage calories available to children in America's schools. The guidelines eliminate the sale of full-calorie soft drinks to students in elementary and secondary schools and permit only low-calorie and portion-controlled choices. In March of 2010, it was reported that 98.8 percent of measured schools were in compliance with the guidelines and that total beverage calories shipped to schools were reduced by 88 percent since 2004.
  3. PepsiCo currently does not direct sell full-sugar soft drinks to primary and secondary schools in most of Europe, Canada and most countries in the Arabian Peninsula. Feasible replacement strategies are in place for markets that currently offer full-sugar soft drinks.

View details and our progress

Marketplace

  1. PepsiCo will achieve this goal through either formulation and/or packaging innovations to deliver packages that enable calorie control. We are reducing sugars and fats in our portfolio offerings to reduce calories per serving, and we are offering portion- and calorie-control options for several of our products. In addition, we are collaborating with external groups and organizations so we can make a larger impact together in supporting the appropriate calorie intake for individuals.
  2. In 2009, PepsiCo launched SoBe Life Water, the first zero-calorie, naturally sweetened, vitamin-enhanced water made with PureVia, an all-natural sweetener made from the stevia plant. Additional reduced-calorie beverages include: Tropicana's Trop50, which delivers the benefits of orange juice with 50 percent less sugar and calories; and G2, a low-calorie sports drink that delivers hydration.
  3. PepsiCo expanded its existing efforts to help reduce obesity in the U.S. by joining the Healthy Weight Commitment Foundation (HWCF)–an unprecedented partnership between more than 60 of the nation's largest retailers, non-profit organizations, food and beverage manufacturers and trade associations–with PepsiCo serving in a leadership role. This initiative intends to help consumers lead healthier lives by offering healthier nutrition options and helping to make energy balance–calories in, balanced with calories out–a daily habit. The HWCF works toward this goal by increasing access and opportunities for physical activity, healthier nutrition options and raising awareness of the energy balance approach–in the marketplace, in workplaces and in schools. The HWCF will report annually on progress made against specific goals.
  4. Frito-Lay offers many portion-controlled options of several products, including 100-calorie packs, singles and multi-packs. In 2006, Quaker Oats introduced 90-calorie packs of Quaker Chewy Granola Bars and Quaker Granola Bites.

View details and our progress

Community

  1. As part of a long-term initiative, we are dedicating resources that allow us to address the nutritional needs of underserved and lower-income communities. PepsiCo intends to leverage its nutrition, product formulation and distribution expertise to grow and sustain our business hand in hand with those in need. Through innovative business models, we are developing products that will improve the health of individuals and the socioeconomic status of communities.
  2. We recognize that we cannot create these nutrition solutions on our own, so we are working with key private and public partners, including governments, academia, non-governmental organizations (NGOs), and other manufacturers to enhance our knowledge and capability to more sustainably deliver products that improve nutrition. We intend to price and distribute these products to make them widely accessible. These efforts will contribute to our long-term commitment to improving global nutrition.
  3. PepsiCo has nine regional research centers worldwide that are focused on leveraging nutrition science, knowledge, and insight to develop convenient foods and beverages that can improve the overall diet and health of consumers. We are extending the reach of these efforts through a variety of new research partnerships with leading universities and institutions, including: Yale University, Newcastle University, Dresden University, Westfalische Wilhelms-Universitat Munster, Monell Chemical Senses Center, University of Texas, The New York Academy of Sciences and St. Johns University.
  4. In 2010, PepsiCo will launch a pilot initiative in India that will design locally relevant, affordable and nutritious products for undernourished consumers.
  5. In Nigeria, we are supporting humanitarian organizations to help improve nutrition for undernourished children.
  6. In 2009, PepsiCo launched "PepsiCo Hope" in Dallas, TX, with the goal to help transform inner-city communities by increasing access to affordable nutrition and creating local employment in inner-city neighborhoods.

View details and our progress

Community

  1. The PepsiCo Foundation has invested in several research and demonstration projects that aimed to identify ways to help people–particularly the underserved–to adopt healthy lifestyle habits and achieve balance for healthier lives. The PepsiCo Foundation partners with academic institutions like the Tufts University Friedman School of Nutrition and the University of Florida, as well as community organizations like the YMCA, the Consortium to Counter Obesity in Chicago's Children, and the National Council of La Raza. Going forward, the Foundation is committed to helping people with the greatest health disparities achieve improved health and nutrition through access to programs that have been proven to be effective and practical.
  2. In 2009, the PepsiCo Foundation made a $5 million commitment to Save the Children for a three-year program to attack newborn and child mortality and malnutrition through community health educators in rural India and Bangladesh, which together are home to 40 percent of the world's malnourished children.
  3. The PepsiCo Foundation made a three-year, $2.2 million commitment to the World Food Programme, in conjunction with technical assistance from PepsiCo Foundation's Service Corps, to help strengthen logistics capabilities thereby improving operating efficiency and response time in meeting global food crises.
  4. In 2009, PepsiCo Foundation made a two-year commitment of $2.5 million to the Healthy Weight Commitment Foundation (HWCF). This is funding efforts in the marketplace as well as workplaces and schools to increase understanding and opportunities for physical activity and nutrition education, and to raise awareness of the energy balance approach.
  5. From 2007 through 2009, the PepsiCo Foundation funded a $2.2 million grant to the Tufts University Friedman School of Nutrition for its Children in Balance initiative. The Project is a community-based, multi-level research study aimed at preventing childhood obesity.
  6. In 2007, the PepsiCo Foundation committed $3 million to the YMCA for a three-year Activate America Diversity Collaboratives program. This program focuses on communities with high rates of health disparities. It aims to address and improve health behaviors of minorities by more effectively supporting the health and well-being wants, needs and interests of these communities. It encourages these communities to take ownership of grassroots solutions that drive improved health in families and across neighborhoods.
  7. The PepsiCo Foundation made a two-year $1.1 million commitment to the University of Florida in 2006 to support its community-based health self-empowerment model for increasing health promoting behaviors of families.

View details and our progress

Community

  1. The world is now challenged to grow more food while preserving natural resources, efficiently store and distribute more food, and deliver better nutrition with every bite–all while providing for economically sustainable communities. Our objective is to guide simultaneous consideration of agriculture, environmental sustainability and nutrition in all facets of PepsiCo's business–including ideation, agriculture, R&D, construction, acquisitions, marketing, packaging, sales, communications and public policy. In doing this we will encourage the use of agricultural practices that minimize negative environmental impacts, increase the nutritional value of food and promote socio-economic sustainability.
  2. During 2010 we will adapt current health and environmental impact assessment approaches to new business plans. For PepsiCo, these issues are critical for the long-term sustainability of our business and for the communities we serve. We are now strengthening our relationships with internal and external stakeholders to create a coherent and transparent strategy for achieving this goal.

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