Pepsico Markets 22 Billion Dollar Brands: CEO Nooyi

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May 1 (Bloomberg) -- Indra Nooyi, chairman & CEO at Pepsico, talks with Betty Liu about the value of the company’s brands, the markets for energy drinks and in-home sodamakers and how to handle investor suggestions on Bloomberg Television’s “In the Loop.”

Spaces or competitive spaces and we innovate again to that with a different shaded products so consumers can come into our categories.

What is the next billion-dollar brand in your per folio?

I think we have 22 billion-dollar brands.

What is the next one?

I think taking brands between 15 and 22 and throwing them to be even stronger is our focus and that is what we're focused on, because in today's world where it is so expensive to build a brand, the fact we have 22 billion-dollar brand -- you just want to grow them even bigger?

I think they are becoming more and more powerful coming into the future.

It is very ethical, -- difficult to create comp weekly . energy drinks, for instance, he in 2000, a $350 -- $350 million market and now 9 billion-dollar market.

How did pepsico and coca-cola miss the energy drink market?

I do not think we've missed it -- energy as a need is important because people are overworked and stressed and when the economy goes down you get even more stressed.

Energy has become even more important.

And that eugenics just focus on energy -- energy as a drink just focus on that space.

Coffee fills the energy space.

Making cappuccino we serve a product with caffeine.

You want to go deeper into coffee?

Our partnership with starbucks is fantastic.

We are the number one ready to drink coffee company in the country.

We are addressing the energy need space through multiple offerings.

There is the whole energy drink market, $9 billion and red bull and monster have two thirds of it.

It would have been a perfect market for pepsico and coca-cola to dominate we distribute rockstar, a great product.

Our participation in the energy drink category is through our distribution agreement with a rock star and our goal is to make it a lot more successful than today because we think it is a great product and partnership.

Soda stream is a company growing exponentially, and given the do-it-yourself soft drinks category.

Is that something you want to be in?

In-home soft drink manufacturers, if you want to call it that, could be something that is a significant force into the future.

When will it happen?

We don't know.

But i think our goal is to play with all the manufacturers of machinery to make sure when this category becomes a factor with consumers, we are playing with all the machinery manufacturers.

It is an open system, and we can supply great tasting products for all of these people.

So consumers can get pepsico product, whatever machine they buy.

Are you worried it can cannibalize your current products on store shelves?

Yes and no, because i think in the in-home experience you can offer completely different products, more crafted like products, more fun products, and more variety than you could in the store shelves.

I think there is a place for both.

The challenge is to play both of these intelligently to grow the whole pie.

Investors have been watching closely.

They have been for years, the power of one shred ag, and how it is driving shareholder value.

One very particular investor, nelson peltz who has been after pepsico to split the company.

You have done research and you said, no, it is not a good idea.

It will not increase your shareholder value.

What gives you the resolve that you really stood up to him and said no way?

I would not call it standing up to any shareholder.

We listen to all of our shareholders.

Our goal is to create good shareholder value for all of our shareholders.

We talked to all of our shareholders and listen to their point of view.

At any time a shareholder gives us any sort of feedback, comments, input, we take it very, very seriously, because at the end of the day we are all shareholders of the company, too, and if anybody has an idea on how to create more value we have the first to take it to heart.

I personally own 20 times of my salary in pepsico stock.

In the case of all of the suggestions that we received, we actually studied it with great care.

Is power of one a strategic advantage?

We always have known it is a strategic advantage.

We went back and studied it.

We are even more convinced now that pepsico is about complementary products that work better together.

And the scale that it gives us, the access, the importance that retailers place on the pepsico partnership is simply spectacular.

Indra, walk me through that.

When you say after you took a look and are more convinced power of one is the right strategy for pepsico, what gives you that further resolve or that

This text has been automatically generated. It may not be 100% accurate.

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