Health Department's Response

Introduction

PepsiCo, the global food and beverage giant, has reported robust double-digit organic revenue growth in India during the third quarter of 2024, reflecting the country's critical role in its global strategy. Despite challenges in other regions, India emerged as a bright spot in the company's AMESA (Africa, Middle East, and South Asia) division. Ramon Laguarta, PepsiCo's Chairman and CEO, highlighted India’s strong market performance, underlining the company's continued success in the region.

In an investor call, Ramon Laguarta emphasized India’s pivotal contribution to PepsiCo's overall performance, noting that the country delivered high-single-digit growth in beverage unit volume and convenient foods unit volume. While the AMESA division faced a 4% decline in net revenue, driven by unfavorable foreign exchange rates and a decrease in organic volume, India's strong growth partially offset declines in markets like Nigeria and the Middle East.Laguarta pointed out that emerging markets such as India, Egypt, and Turkey exhibited notable strength, achieving double-digit organic growth during the quarter. This growth reinforces India’s position as a key player in PepsiCo’s international expansion strategy.

PepsiCo's growth in India can be attributed to several factors, including increasing consumer demand for convenient foods and beverages. Popular products like Lay's, Doritos, Cheetos, and Gatorade continue to dominate the Indian market. The company's ability to adapt to local tastes while maintaining global standards has played a crucial role in its success.Additionally, PepsiCo’s ongoing investments in the region have bolstered its distribution and production capabilities, enabling it to tap into the growing demand for processed foods and beverages in India's expanding middle class.

Despite challenges in other regions, such as a double-digit volume decline in Nigeria and mid-single-digit declines in the Middle East, PepsiCo demonstrated resilience through strong performances in Southeast Asia and India. The company’s overall net revenue for Q3 2024 stood at USD 23.31 billion, a slight decrease of 0.6% due to geopolitical tensions, business disruptions, and product recalls in certain international markets.

PepsiCo’s continued success in India underscores the growing importance of emerging markets in the global food and beverage landscape. With double-digit growth in both its beverage and convenient foods units, India remains a key pillar of PepsiCo’s international strategy. As the company navigates challenges in other regions, its strong performance in India offers a promising outlook for sustained growth.

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