The multinational plans to grow above 4% this year in Spain, where it is accelerating investments and will reach 40 million in 2025.
In the midst of a battle between white label and manufacturer, Pol Codina, general director of PepsiCo in Southwestern Europe, does not hide or launch attacks on a type of product that he considers “complementary” to PepsiCo’s references. “The white label It forces us to give our best version,” explains the Spanish manager, who has just completed a year at the head of the American multinational in southwestern Europe.
In an interview with EXPANSIÓN, the first he has granted since his appointment, Codina points out that the distributor signatures They force manufacturers to maintain the highest quality standards and innovate. “They keep us alive and force us to sharpen our pencils. They are strong competitors,” she says.
Along these lines, Codina highlights that the private label will continue to rise, so his opinion is that PepsiCo can grow more through categories with innovative products than by taking share from distributor firms.
The manager does not avoid the controversy with Carrefourafter the French group withdrew products from PepsiCo from its shelves in France alleging an “unacceptable price increase”. His vision is that both companies maintain a relationship of “decades”, with a first quarter that “was not the best”, although now relations have been resumed and both companies are in a “good position.”
Regarding the weight of the white label, Codina points out that one should not complain, but rather attract the customer. He does not rule out that the large chains continue removing references from their shelves, so “we have to earn space on the shelves.”
Codina’s message is in line with the corporate strategy, aimed at promoting the company’s growth in the next five years. The main goals of this plan are grow in volume and gain market share.
To achieve this, we will focus on accelerating the digital transformation, as well as a policy of savings maximizationwith a reduction of ten points in costs, and reinvestment, with an estimate of 40 million in 2025 in Spain. Another strategic axis is sustainability, with the goal of reducing gas emissions by 40% by 2030 and being carbon neutral in 2040.
Finally, the fourth point of the strategy is to innovate in products and enter new segments, an aspect to which the firm will dedicate large resources. Within its innovation plan, PepsiCo wants to “go from being a snack company to a food company,” which opens up many opportunities for growth.
The idea is to make this transformation internally through its operations, without resorting to buying specialized external companies. An example of this change is the tortilla made with the brand’s potato chips. Lay’s.
On the other hand, Codina points out that the market and the company continue to face an environment of strong inflation, which has greatly increased the price of food.
Grow 4% annually
The manager expects the company’s business in Spain to grow by more than 4% on average in the coming years, mainly through volume. One factor that will contribute to this progress is the “price containment” agenda implemented by PepsiCo, to which a large part of the investments will be allocated. “This year we are passing on prices below the CPI,” he explains.
In the environmental framework, PepsiCo has chosen a Spanish plant as a pioneer in reducing emissions. The center of Victoriawhich manufactures beverages kas and Pepsi, will be emissions neutral in 2025, which will require an investment of 5 million. They join the 27 assigned to said factory in the last five years.
The Spanish brand Alvalle will “pivot” to new market segments
The American giant PepsiCo has the Spanish brand in its portfolio Alvallein which he has high hopes for growth for the future and with which he will present new developments shortly.
The general director for the Southwest Europe region, Pol Codina, emphasizes that Alvalle “is a leader and a reference” in the gazpacho segment. However, he confirms that PepsiCo is working for the brand, which manufactures its products in Murcia, to “pivot” to other market segments, so he anticipates that there will be “interesting news” soon to continue developing the brand.
Another strategic axis for Alvalle is the sustainability. The company has focused on significantly reducing water consumption in the Murcia factory, which is an area especially sensitive to the consumption of this resource.
Codina highlights Alvalle’s strong presence in France, as important even as in Spain, and adds that prospecting will continue in other markets.
News
“For next year we are improving the portfolio,” says the manager, who indicates that the group’s focus is on making products with better nutritional value. Therefore, remember that in the last 5 years it has reduced 40% sugar in your drinks and has positioned Lay’s as the brand of potato chips with the least salt.
The head of the company in Southwestern Europe confirms that PepsiCo will continue working in this line, with new developments in the brand Doritoswith an improvement in its nutritional profile, as well as in Cheetos and also in the beverage area with Pepsi.
