45 years in China, 10 food plants, over 50 beverage plants, 170,000 people in the ecosystem, and a new stage — innovation

As reported by CCTV+, PepsiCo CEO Ramon Laguarta called the Chinese market a key element of the company’s future plans. The huge market, the diversity of consumer tastes, the rich talent pool and the innovative approach to new product development all make China indispensable.

In an interview with CGTN, Laguarta described the scale of PepsiCo’s operations today, 45 years after the company first entered the Chinese market.

“In a way, we were pioneers in China, different from Western companies. 45 years ago, we started as pioneers. Now we are scaling up, and in China we are very large: we have 10 food plants and more than 50 beverage plants. We work with over 70 farmers across the country. And in our ecosystem, there are about 170,000 people. So we know China well, all our specialists are Chinese, and we know how talented they are and how much they can help us. But now the next stage of our growth is innovation, creating new markets and using China not only as a consumption market, but as a creation market, a creation market for the entire PepsiCo,” he said.

Laguarta outlined PepsiCo’s growth plans in the country and detailed how its employees are driving innovation and transformation on a global scale.

“China is a growth opportunity for us, but it is a growth opportunity that is tied to innovation and transformation. So it plays a very important role in shaping PepsiCo’s future, both in terms of product portfolio and technology. It is also a very important talent hub. Our employees in China are smart, hardworking people who learn beyond China. So we see China as a place to develop our talent and then spread them around the world,” he said.

Laguarta also emphasized the importance of understanding consumers: “Understanding consumer needs is a core competency of the company, and we strive to understand Chinese consumers, not only the young, as they are an important source of growth, but also the so-called consumers over 50. We see them as a very important part of the growth. They have different needs in terms of nutrition, as well as in terms of experience and value for money. These are very promising groups. We have a wide range of products because consumers in China love variety, and to engage with consumers from morning to night, we need to offer many solutions. That is why we have such a variety of brands.”

45 years ago, PepsiCo came to China as a pioneer. Today, it has 60 factories, 170,000 people in its ecosystem and plans for a new stage. The company no longer just wants to sell soda and chips. It wants to create — right here, in China. And export not only products, but also talent. Chinese PepsiCo employees are now teaching the world. And Chinese consumers over 50 are just as much a growth driver as Gen Z. PepsiCo has understood the main thing: China has changed. And now it is changing along with it.