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PepsiCo retains full confidence in Chinese market

By CHENG YU and ZHANG XIAOMIN in Dalian, Liaoning | China Daily | Updated: 2024-06-28 09:05
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PepsiCo's stand at the sixth China International Import Expo. CHINA DAILY

China presents "pockets of opportunities" for PepsiCo's growth, as the US multinational food and beverages company has been stepping up investments in the domestic market, a top executive said on Thursday.

Anne Tse, CEO of PepsiCo Greater China Region and chief consumer officer of PepsiCo Asia-Pacific, said China is one of the most important markets for PepsiCo, as proven over the past few years, and is also one of fastest growing markets globally.

Anne Tse

"It is also a market that, because of its dynamic nature, has proven itself to be a source of inspiration for a lot of innovations, which present pockets of opportunities for multinationals like PepsiCo," Tse said in an exclusive interview with China Daily during the 15th World Economic Forum Annual Meeting of the New Champions, also known as the Summer Davos Forum, that concluded in Dalian, Northeast China's Liaoning province, on Thursday.

Amid a global economic slowdown, Tse said the company still sees China as a huge, single market that is highly unified, and the company "remains committed" to the Chinese market.

"The temporary economic cycle that we are facing won't change the company's confidence and commitment here. Instead, we have accelerated our growth pace in the past couple of years in China," she noted.

Tse said that over the past five years, PepsiCo has stepped up investments in the Chinese market, "with a record of five new plants over five years".

Earlier this month, the US food and beverages giant broke ground on its first food production base in Xi'an, Northwest China's Shaanxi province, with a projected total investment of $180 million. It is also PepsiCo's 10th food plant in China.

The facility is designed to meet international "net-zero emission "standards and is expected to begin trial operations in September 2025, with an anticipated production capacity of around 25,000 metric tons to cater to growing market demand in Northwest China.

"Not only that, we are investing behind the brands, including our capability in consumer insights, research and development, and talent to really drive product and brand experience here in China," she added.

As for opportunities, Tse said that the silver economy is pronounced in China, which represents a huge market for multinational firms.

Currently, China's demographic development has entered a "new normal" of moderate population aging. According to data from the United Nations, the proportion of Chinese people aged 65 and above will reach 21 percent by 2034.

She added that the rate at which the silver economy group will get into the market and their needs will be very different in China than their counterparts in other markets.

"So, these pockets of opportunities in China are waiting to be disrupted and waiting to be innovative, which will naturally present opportunities for companies like us to better develop ourselves," she said.

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