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Smoothie Operators

Nooyi arrived at a seriously tricky time. PepsiCo’s restaurant businesses were stagnating
and the company’s huge growth could suddenly no longer be taken for granted. But cometh
the hour and cometh the woman who was to transform PepsiCo almost at a stroke. Research
informed her that the fast food market had reached saturation point and this inspired
PepsiCo to shed big names like Pizza Hut, KFC and Taco Bell. Since the restaurant division
accounted for a third of the $31 billion company, there is no doubting that this was a pretty
intrepid decision to take.
The then strategy chief and head of Merger & Acquisition was even more instrumental in
what followed. As a vegetarian with a passion for health issues, Nooyi is naturally alert to
obesity concerns and the rising trend toward healthier eating. The result? PepsiCo snapped
up major brands like Quaker Oats, Tropicana and Inter to signal a change in direction. The
company has since then flagged up its growing portfolio of products deemed ‘‘good for you’’
and ‘‘better for you’’, even though more than two thirds of its offerings still belong in the
ingeniously labeled ‘‘fun for you’’ category.
Home and away
Nevertheless, the shift is no token gesture. PepsiCo has strived to get the right people on
board, make the right acquisitions and develop the right partnerships to get the message
across about its future intentions. This is further emphasized in the ‘‘Performance with
purpose’’ maxim created to encapsulate the organization’s commitment towards its
workforce, healthy eating and the environment as well as the bottom line. In Nooyi’s eyes,
companies have a duty to be responsible but she wants PepsiCo to go one step further by
being enthusiastic about doing good deeds. And why not? In this instance, smart PR work
can enhance company persona, keep legislation the regulation wolves at bay and dilute
accusations that PepsiCo is among those to blame for obesity levels. Nooyi is certainly doing
her...