PepsiCo India: Smartly choosing health

PepsiCo is set to launch café stalls to send out the message loud and clear that it is a healthy food company. The Smart Choice Cafés will bring under one roof the different products from PepsiCo: Breakfast oats (Quaker), juices (Tropicana), baked snacks (Aliva) and snacks made from ingredients found in Indian kitchens (Kurkure). The retail foray could help the company increase conviction among consumers of the health quotient of the food and beverage brand.

While the first café was opened in Chennai in association with the Centre for Nutrition Counseling, Research and Extension Activities at Women’s Christian College to cater to college students, more are slated to open in New Delhi and a few other cities. PepsiCo has lined up spinoffs of its products such as Quaker muffins, Quaker idli (made from oats), Tropicana 100% smoothies, Nimbooz coconut mint cocktail (from the Nimbooz lemon drink) that will be prepared by the students from the nutrition department to add value to the café’s offering.

PepsiCo India Vice-President (health and wellness) Mallika Janakiraman had earlier told Business Standard: “PepsiCo has always partnered with different stakeholders in promoting good nutrition and healthy lifestyles”, explaining how the Smart Choice Cafés will fit in with the company’s plans. PepsiCo’s FritoLay had already classified some of its snacks as Snack Smart or healthier options without trans-fat and MSG in India, while PepsiCo CEO Indra Nooyi had spearheaded the slant towards health in PepsiCo worldwide when she brought in senior scientists from World Health Organisation. The Smart Choice Cafés could help the company increase the contribution of its health segments to its revenue from India.

Analysts point out that a retail presence would further position the company as a lifestyle rather than a foods and beverage brand. While PepsiCo’s positioning had already established it as a lifestyle brand for the youth, these cafés would keep PepsiCo associated with health. It is not clear when the company plans to open outlets in other cities.