PepsiCo Pivots Marketing to Functional Health
What happened
PepsiCo is shifting its marketing strategy away from indulgence and toward a focus on functional health benefits. The move reflects a broader consumer trend toward wellness and data-informed lifestyle choices. This pivot sees a legacy consumer packaged goods giant adopting storytelling themes more common to challenger and lifestyle brands.
Why it matters
- The pivot includes a focus on reducing sugar and sodium, adding functional ingredients like fiber and protein, and exploring alternative cooking oils and methods. - This strategy is led by CEO Ramon Laguarta, who has emphasized innovating to meet new consumer needs and creating new consumption occasions, such as mini-meals. - A key move in this direction was the $2 billion acquisition of the prebiotic soda brand Poppi, positioning PepsiCo to compete with challenger brands like Olipop in the gut-health market. - The company appointed Mark Kirkham, a 14-year veteran, as the new U.S. beverages CMO to lead this functional beverage strategy, effective April 2025. - PepsiCo is also "restaging" its major brands like Lay's, Tostitos, Gatorade, and Quaker, following a playbook similar to the successful repositioning of Pepsi with a focus on zero-sugar options. - The Quaker brand is set for a relaunch in the second half of the year to emphasize benefits around gut health, heart health, and energy. - To reach younger consumers, PepsiCo is launching new products like Pepsi Prebiotic Cola and its first creator-led snack line, promoted and sold directly through TikTok. - This marketing shift is happening amidst a backdrop of declining North American beverage sales in late 2024, although organic revenue saw a 2.1% increase.
Key numbers
- A key move in this direction was the $2 billion acquisition of the prebiotic soda brand Poppi, positioning PepsiCo to compete with challenger brands like Olipop in the gut-health market.
- The company appointed Mark Kirkham, a 14-year veteran, as the new U.S.
- beverages CMO to lead this functional beverage strategy, effective April 2025.
- This marketing shift is happening amidst a backdrop of declining North American beverage sales in late 2024, although organic revenue saw a 2.1% increase.
Quick answers
What happened in PepsiCo Pivots Marketing to Functional Health?
PepsiCo is shifting its marketing strategy away from indulgence and toward a focus on functional health benefits. The move reflects a broader consumer trend toward wellness and data-informed lifestyle choices. This pivot sees a legacy consumer packaged goods giant adopting storytelling themes more common to challenger and lifestyle brands.
Why does PepsiCo Pivots Marketing to Functional Health matter?
The pivot includes a focus on reducing sugar and sodium, adding functional ingredients like fiber and protein, and exploring alternative cooking oils and methods. This strategy is led by CEO Ramon Laguarta, who has emphasized innovating to meet new consumer needs and creating new consumption occasions, such as mini-meals. A key move in this direction was the $2 billion acquisition of the prebiotic soda brand Poppi, positioning PepsiCo to compete with challenger brands like Olipop in the gut-health market. The company appointed Mark Kirkham, a 14-year veteran, as the new U.S. beverages CMO to lead this functional beverage strategy, effective April 2025. PepsiCo is also "restaging" its major brands like Lay's, Tostitos, Gatorade, and Quaker, following a playbook similar to the successful repositioning of Pepsi with a focus on zero-sugar options. The Quaker brand is set for a relaunch in the second half of the year to emphasize benefits around gut health, heart health, and energy. To reach younger consumers, PepsiCo is launching new products like Pepsi Prebiotic Cola and its first creator-led snack line, promoted and sold directly through TikTok. This marketing shift is happening amidst a backdrop of declining North American beverage sales in late 2024, although organic revenue saw a 2.1% increase.
