Word: pepsico
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...weren't the only problem with potato chips. Frito-Lay, after realizing that its factories burn enormous amounts of energy, plans to take its Casa Grande, Ariz., facility off the power grid. Scheduled for 2010, the new design is capable of reducing electricity and water consumption 90%. Parent corporation PepsiCo's CEO says the company will be content to reach even 50% of the program's potential. Here's the plan...
...consumers have always talked healthier than they have eaten, and they have traditionally shown some resistance to the premiums they have had to pay for "healthy." And haven't snack-food companies like Pepsico proved that you can have it both ways: indulgent treats and "healthy" snacks, each commanding fat profit margins? Pepsi's Frito Lay North America division had 24% operating margins last year, easily exceeding Danone's 14% ops margins on fresh dairy products...
...response to the growing obesity problem in the U.S., companies including McDonald's, Coca-Cola, PepsiCo, Kellogg, and Kraft created the Children's Food and Beverage Advertising Initiative last year to self-regulate the $10 billion worth of food and beverage messages they aim at young children each year. The initiative pledges to promote healthy lifestyles for youngsters by giving them healthier food and drink choices. It's a good start, says Robinson. "So far we have seen baby steps toward improving menus," he says, "but it remains to be seen whether these companies will follow through on their promises...
...diaspora has spread beyond Silicon Valley. Indian-born executives have in recent years taken the reins at some of the world's biggest companies. Arun Sarin, a native of Madhya Pradesh in central India, is CEO of Britain's Vodafone. Three months ago, Indra Nooyi was named CEO of PepsiCo after serving five years as the U.S. beverage giant's CFO. Indians have credibility as managers, says Hemant Luthra, head of the Systems & Automotive Technologies division at Indian car-and-tractor manufacturer Mahindra & Mahindra. This was not always so. Luthra remembers visiting Hong Kong in 1991 when India's government...
...Dietz sees some companies positioning themselves trying to capitalize on consumers' battle of the bulge. "Companies like PepsiCo invested heavily in making 'better for you' or 'good for you' products which, from their perspective, has turned out to be a wise business decision because those product lines are growing, at least in last year's data, three times as fast as their other product lines," he said...