PepsiCo Opens Food and Beverage R&D Center in Shanghai to Drive Innovation and Growth Across Asia

PepsiCo Opens Food and Beverage R&D Center in Shanghai to Drive Innovation and
                              Growth Across Asia

Expected to significantly increase pace of PepsiCo's innovation throughout the
region

Further strengthens PepsiCo's ability to develop locally relevant products by
tailoring global brands to local tastes

Supports PepsiCo's plan to drive growth in emerging and developing markets

PR Newswire

SHANGHAI, Nov. 13, 2012

SHANGHAI, Nov. 13, 2012 /PRNewswire/ -- PepsiCo, Inc. (NYSE: PEP) today
announced the opening of a new food and beverage innovation center in
Shanghai, China. The state-of-the-art facility, which is PepsiCo's largest
research and development center outside of North America, will serve as a hub
of new product, packaging and equipment innovation for PepsiCo's businesses
throughout Asia.

(Logo: http://photos.prnewswire.com/prnh/20120424/NY93895LOGO)

The new facility is equipped with an advanced culinary center and test
kitchens focused on developing and tailoring PepsiCo food and beverage brands
for distinct, locally relevant taste preferences throughout the region. In
addition, the facility will house a pilot manufacturing plant that will allow
researchers to quickly test new product ideas and support efforts to
significantly accelerate the pace of PepsiCo's innovation in China and other
growing Asian markets. 

It is one of PepsiCo's most integrated food and beverage R&D centers anywhere
in the world, a combination that is designed to unlock new opportunities for
breakthrough innovation across the company's diverse portfolio of
complementary brands and enable greater speed and efficiency throughout the
entire R&D process. The new Shanghai facility will also work collaboratively
with other PepsiCo R&D locations around the world to share insights and best
practices.

"Innovation has always fueled PepsiCo's growth engine and enabled us to build
a portfolio of great-tasting, convenient food and beverage brands that are
loved by consumers around the globe," said Saad Abdul-Latif, CEO, PepsiCo
Asia, Middle East & Africa. "The Shanghai facility is a game-changer for our
business that we expect will fast forward our innovation throughout the entire
region."

"PepsiCo continues to build global research and development capabilities that
are differentiating our brands in the marketplace and driving attractive new
growth opportunities," said Mehmood Khan, executive vice president and chief
scientific officer, PepsiCo. "This center will play an important role in our
global R&D network by bringing cutting edge technology and innovation to our
businesses in China and throughout Asia Pacific and partnering with other
PepsiCo locations to achieve new breakthroughs in other parts of the world."

The new R&D center was built in line with the criteria established by
Leadership in Energy and Environmental Design (LEED), the world's leading
green building standard, and uses advanced technologies and processes to
conserve natural resources and reduce operating costs.

The grand opening was attended today by Mr. Abdul-Latif, Dr. Khan, and other
PepsiCo leaders. Mr. Huang Feng, Deputy Director General, Ministry of
Commerce; Mr. Dai Hua,Vice Governor of Minhang District, Shanghai and other
local officials and industry association senior representatives also attended.

Mr. Dai said: "PepsiCo is one of the world's most successful food and beverage
companies, and we're proud that they continue to grow and invest in China.
Shanghai is a vibrant business center with a wealth of human capital,
informational technology, and commerce that continues to attract great
companies like PepsiCo. Multinational companies are playing an important role
in Shanghai's continued development, and we look forward to having PepsiCo as
part of the fabric of Shanghai for many years to come."

Tailoring Global Brands for Local Tastes

PepsiCo has a strong portfolio of global food and beverage brands that
includes 22 brands that generate more than $1 billion each in annual retail
sales. A key focus of the PepsiCo Asian R&D center will be tailoring these
brands for regional consumer taste preferences and developing locally relevant
new products. PepsiCo has developed and launched a number of locally relevant
new products in Asian markets in recent years, including:

  oA series of popular new Lay's potato chip flavors, including the
    successful 'cool range' featuring cucumber and ice lemon tea flavors, as
    well as regional favorites such as hot and sour fish soup and seaweed.
    Local flavors have played a key role in making Lay's the world's largest
    food brand.
  oPopular new flavors across the company's carbonated soft drink portfolio,
    such as sour plum and peach flavors of Mirinda, one of the world's largest
    flavored soft drink brands.
  oQuaker Oats for Rice and Quaker Congees, made with whole grain oats and
    locally relevant ingredients like red dates, wolfberry and white fungus.
    These new items have helped drive Quaker's overall growth throughout the
    region, where it is quickly establishing itself as one of the largest
    cereal and nutrition brands.
  oPopular juice offerings, such as Tropicana Pulp Sacs juice drinks sold
    throughout the region that were created to meet the flavor and texture
    preferences of Chinese and Asian consumers, and Tropicana CoCo Quench, a
    delicious new coconut water in the Philippines.
  oSmith's Extra Crunchy, a popular line of Australia's top-selling chip
    brand that comes is a range of locally relevant flavors, including flame
    grilled steak and honey glazed ham.
  oQuaker NutriGo, a powdered oat-based beverage in the Philippines that
    offers the nutritional benefits and great taste of Quaker Oats in a
    package that combines convenience and value for Filipino consumers.

Driving Growth in Emerging Markets

China and the Asia Pacific region are key components of PepsiCo's overall plan
to drive growth in emerging and developing markets globally. PepsiCo nearly
tripled its business in emerging and developing markets from $8 billion in
annual net revenue in 2006 to $22 billion in 2011.

The opening of the new R&D center and pilot manufacturing plant in Shanghai is
the latest in a series of steps PepsiCo has taken to strengthen its business
across Asia. During 2012, PepsiCo has:

  oCompleted a strategic beverage alliance with Tingyi to create the number
    one liquid refreshment beverage system in China.
  oOpened new beverage manufacturing plants in Kunming and Zhengzhou, China.
    The Tingyi-PepsiCo beverage system now has more than 70 manufacturing
    plants across China and provides consumers with several of the country's
    most popular beverage products, including: Pepsi-Cola, China's top-selling
    cola; Mirinda, China's top-selling flavored carbonated soft drink;
    Gatorade, one of China's top-selling sports drinks; China's top-selling
    tea and water brands, sold under the Master Kong brand name; and China's
    largest juice portfolio.
  oOpened a new Frito-Lay manufacturing plant in Wuhan, China that is
    equipped with one of the most advanced potato chip production lines in the
    world and will support plans to fuel the expansion of PepsiCo's snacks
    business in China, where Lay's is the top-selling chip brand.
  oSigned an agreement to form a strategic beverage alliance with Suntory in
    Vietnam, where PepsiCo is one of the leading liquid refreshment beverage
    companies. The alliance, which is subject to the completion of legal
    processes, is designed to combine the capabilities of both companies in
    ways that are mutually beneficial to their businesses, customers and
    consumers.
  oSigned a distribution agreement with Diamond Star, one of the largest
    consumer packaged goods distributors in Myanmar, to distribute PepsiCo
    beverage brands in the market.

About PepsiCo
PepsiCo is a global food and beverage leader with net revenues of more than
$65 billion and a product portfolio that includes 22 brands that generate more
than $1 billion each in annual retail sales. Our main businesses – Quaker,
Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable
foods and beverages that are loved throughout the world. PepsiCo's people are
united by our unique commitment to sustainable growth by investing in a
healthier future for people and our planet, which we believe also means a more
successful future for PepsiCo. We call this commitment Performance with
Purpose: PepsiCo's promise to provide a wide range of foods and beverages for
local tastes; to find innovative ways to minimize our impact on the
environment by conserving energy and water and reducing packaging volume; to
provide a great workplace for our associates; and to respect, support and
invest in the local communities where we operate. For more information, please
visit www.pepsico.com.

Cautionary Statement
Statements in this communication that are "forward-looking statements" are
based on currently available information, operating plans and projections
about future events and trends. Terminology such as "believe," "expect,"
"intend," "estimate," "project," "anticipate," "will" or similar statements or
variations of such terms are intended to identify forward-looking statements,
although not all forward-looking statements contain such terms.
Forward-looking statements inherently involve risks and uncertainties that
could cause actual results to differ materially from those predicted in such
forward-looking statements. Such risks and uncertainties include, but are not
limited to: changes in demand for PepsiCo's products, as a result of changes
in consumer preferences and tastes or otherwise; PepsiCo's ability to compete
effectively; unfavorable economic conditions in the countries in which PepsiCo
operates; damage to PepsiCo's reputation; PepsiCo's ability to grow its
business in developing and emerging markets or unstable political conditions,
civil unrest or other developments and risks in the countries where PepsiCo
operates; trade consolidation or the loss of any key customer; changes in the
legal and regulatory environment; PepsiCo's ability to build and sustain
proper information technology infrastructure, successfully implement its
ongoing business transformation initiative or outsource certain functions
effectively; fluctuations in foreign exchange rates; increased costs,
disruption of supply or shortages of raw materials and other supplies;
disruption of PepsiCo's supply chain; climate change, or legal, regulatory or
market measures to address climate change; PepsiCo's ability to hire or retain
key employees or a highly skilled and diverse workforce; failure to
successfully renew collective bargaining agreements or strikes or work
stoppages; failure to successfully complete or integrate acquisitions and
joint ventures into PepsiCo's existing operations; failure to successfully
implement PepsiCo's global operating model; failure to realize anticipated
benefits from our productivity plan; any downgrade of our credit ratings; and
any infringement of or challenge to PepsiCo's intellectual property rights.

For additional information on these and other factors that could cause
PepsiCo's actual results to materially differ from those set forth herein,
please see PepsiCo's filings with the SEC, including its most recent annual
report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors
are cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date they are made. PepsiCo undertakes
no obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise.

SOURCE PepsiCo, Inc.

Website: http://www.pepsico.com
Contact: PepsiCo U.S., Jeff Dahncke, +1-914-253-3941,
jeff.dahncke@pepsico.com, or PepsiCo Greater China Region, Emma Fan, +86 10
65630086, emma.fan@pepsico.com
 
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