A key component of PepsiCo’s growth strategy is to aggressively invest in emerging and developing markets where economic growth and rising consumer incomes are increasing demand for convenient food and beverages. These markets have become a growing revenue source for the company. In 2012, emerging and developing markets accounted for 35 percent of PepsiCo’s net revenue, up from 24 percent in 2006.
One such market is Myanmar, where this week Chairman and CEO Indra Nooyi kicked off a trip to PepsiCo’s Asia-Pacific region with a visit to the capital of Myanmar to co-chair the World Economic Forum on East Asia 2013.
Myanmar is “a story that is just beginning to unfold,” said Indra. “Political reform is happening here and as economic reform starts to happen here in Myanmar, I think this is going to be an unbelievable growth story for many years to come.”
In Myanmar, PepsiCo signed a distribution agreement last summer with Diamond Star Co., Ltd., one of the nation’s largest consumer packaged goods distributors. Since that time, product distribution is growing steadily as sales outlets increase, including two key foodservice wins. PepsiCo is also pursuing opportunities for in-country beverage production and is finalizing plans to introduce its snack brands to Myanmar later this year.
Myanmar has great potential for agricultural production and PepsiCo, one of the world’s largest agricultural enterprises, is exploring opportunities to invest in potato seed development and teach best practices to farmers. It’s a model that has worked for PepsiCo in other emerging and developing countries. With investments in Myanmar, PepsiCo will help raise farm productivity and increase the quality of life in Myanmar’s farming communities while maintaining a sustainable agricultural supply chain.
Through a partnership with the United Nations Educational, Scientific and Cultural Organization, PepsiCo is helping launch an educational center that focuses on improving managerial skills to support Myanmar’s development and give people the skills they need to succeed as the economy continues to develop.
During her trip, Indra will also visit Malaysia, Japan and Thailand.