PepsiCo’s UK and Ireland unit today (1 July) claimed it had made “good progress” on meeting a series of health targets the food and drinks maker set last year.
In an update on how PepsiCo had performed since the targets were published last March, the company said it had cut the level of salt in Walkers crisps by 11.7% and “delivered 1.9bn servings of wholegrain” – above a goal of 1.7bn.
Go deeper with GlobalData
However, the company admitted it had not met certain targets including plans to launch and “take to scale” children’s lunchbox and breakfast products that met Ofcom’s nutrient profile by 2010.
PepsiCo said sales of its Planet Lunch product had risen by 50% in the first half of 2011 and said it had launched a porridge range for children in May. Planet Launch will also be rolled out beyond Sainsbury’s, it said.
The company also admitted that it was not on track to meet its target of increasing the availability of its Walkers Baked snacks by 25% by 2012. PepsiCo said the availaibility of Walkers Baked products had fallen by 10% since 2008.
Nonetheless, PepsiCo UK & Ireland president Richard Evans said the company was “delivering on our promise to reformulate our core products and reshape our portfolio”.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“I am pleased to announce good progress against our targets and to fulfil the commitment we made to report our performance on an annual basis,” Evans said.
“Some of the targets we set ourselves last year fall within the timeframe of this update, others are longer term and will take years to deliver. We have not met all of our short-term targets and in the spirit of openness have chosen to be transparent about the setbacks, the challenges we have faced and how we propose to address them.”
A month later, PepsiCo & Ireland president Richard Evans said he wanted the company to be a “champion of change” in reformulating its products amid rising concerns about health obesity.
He admitted the ambition was “not pure self-altriusm”. Evans said: “It goes with the grain of where consumers are going. And companies that anticipate the consumer will always have real strategic advantage.”
However, he added: “But nor is it pure self-interest. Change is not pain-free. The changes we seek to make will take time, effort and resources. We will not get to our destination overnight and inevitably some will want us to go further and faster.
“But the changes we propose are real and achievable. They are tangible commitments to which we positively invite stakeholders to hold us to account. I believe companies like PepsiCo have a responsibility to lead change – and to be accountable for it.”
