PepsiCo is undertaking a major innovation drive seeking to rejuvenate some of its leading brands and tap in to the latest communications technology.

Quaker, which was acquired by Pepsi for $13.8bn (€10.6bn; £8.7bn) around a decade ago and currently delivers $2bn in annual revenues, is one of the brands that will be the subject of a heightened focus. As well as protecting Quaker against the challenges from low-cost and own-label alternatives, this effort also hopes to encourage more people to eat prior to leaving the house. While 97% of US consumers agree breakfast is the most important meal of the day, only 40% regularly fill up in the morning. In this purpose, new offerings are being developed to suit the needs and tastes of a variety of different target audiences. These will include Quaker Mix-Up for children, alongside a multigrain variant for adults and reformulated recipes that are lower in salt and sugar.

Several extensions have also been introduced for Gatorade, such as the G Series range that aims to hydrate athletes before, during and after exercise. This initiative was a primary reason why the sports drink returned to growth for the first time in two years in the last quarter.

The roll out of Doritos in New Zealand, Quaker Drinkable Oats in the Philippines, Quaker Congee in China and additions to Lay's in Saudi Arabia and South Africa in Q2 are examples of this initiative in global arena.

Elsewhere, PepsiCo is attempting to transform its approach to marketing through an "incubator programme” that will see it partner with pioneering start-ups. It has recently released a shortlist of 20 businesses that have submitted successful applications to the opening phase of this scheme, with half of this group ultimately set to win the chance to work on campaigns.


Summarized from warc.com