PepsiCo India, a prominent player in the beverage and snacks industry, has diversified its food portfolio with several launches over the past two years. This expansion was driven by the increased in-home consumption trend during the pandemic, which has continued for the brand.
Earlier this month, the leading fast-moving consumer goods (FMCG) company introduced three new variations within its Quaker Oats brand.
Last year, the company unveiled four new releases and introduced seven diverse variants in its snacks and chips portfolio.
In 2022, the company introduced five new launches and unveiled eight flavors within the same space.
This marked the highest number of product launches by the company since 1995, the year it introduced the Lay’s brand.
The company explained that the surge in launches was prompted by the increasing demand for snacks and chips amid the pandemic.
PepsiCo India president Ahmed ElSheikh said, “This promises to be India’s decade for sure, and at PepsiCo India we are excited to participate in this incredible journey the nation is undergoing. The Indian consumer is ever more discerning, and the exciting shifts in consumer behaviour have propelled us to keep innovating. 2023 marked further investment and expansion for PepsiCo India across foods and beverages portfolio.”
“We are very proud to have commenced work on our greenfield foods manufacturing facilities in Assam while our partners are also in expansion mode as they continue to set up facilities across the country. We are very bullish on the Indian growth story and will continue to keep in step with it through our investment plans,” he added.
Sravani Babu, the Associate Director and Category Lead for Quaker Oats, said that although oats as a category is still in its early stages compared to other FMCG categories, it is experiencing double-digit growth.
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“Flavour oats is still a nascent category and is growing at double-digit growth. Base oats category continues to be the leading segment in the category. With this launch, we are looking at occasions which are breakfast and beyond,” Babu explained.
She mentioned that while the company has currently launched these three flavors, there are plans to expand and diversify its portfolio of offerings.
Looking ahead, Babu mentioned that there are additional launches in the pipeline.
In August 2022, the company introduced multigrain oats as one of the five launches made during the year.
E-commerce and Quick Commerce Boosting PepsiCo India’s Reach
Saumya Rathore, the Category Lead for potato chips at PepsiCo India, mentioned that the patterns of in-home consumption shifted during the pandemic. Additionally, with quick commerce gaining traction, it has further fueled demand.
“Consumer habits take decades to evolve but the pandemic has crunched that,” Rathore explained.
Rathore and Babu also emphasized that both e-commerce and quick commerce are contributing to the expanded penetration of snacks in the country.
Aligning with the changing consumption trend in foods, PepsiCo India announced its first food manufacturing plant in Nalbari, Assam, with an investment of INR 778 crore ($95 million). This unit, spanning 44.2 acres, is set to be operational by 2025.
Similar to PepsiCo India, other major players such as Amul and ITC have maintained an aggressive stance on product launches, particularly during and following the pandemic.