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An Inside Look at PepsiCo’s Russian Business

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We were excited to recently welcome Bloomberg Businessweek to go behind the scenes of our business in Russia, our largest market outside the United States. It was a great opportunity to show firsthand why PepsiCo  is in such a strong position across the country with eight of the top 20 food and beverage brands. Read the full article on our portfolio, our people and our strategy in the region.

Spread over nine time zones, Russia is a tough feat to cover in just a few days, so we developed an itinerary that included a range of location visits and meetings that would provide a rich experience.

I was lucky enough to take part in the trip. Some of the elements included:

  • Lunch in a local Russian family’s home to help the reporter understand what makes Russian consumers tick and how they use our products in their everyday lives. Our Consumer Insights team joined us to note distinct cultural differences in eating habits and preferences.
  • Visit to the Lianozovosky Dairy Plant in Moscow, Wimm-Bill-Dann’s flagship dairy plant and the largest in all of Europe, producing more than 150 different products and approximately 1,300 tons of finished products a day. Globally, PepsiCo is able to leverage the dairy capabilities of WBD, a pioneer in the Russian dairy market and innovator across categories.
  • Tour of the Azov snacks plant (pictured right) located in Rostov, one of two Frito-Lay manufacturing facilities in Russia. In 2011, our Azov snacks facility was the first manufacturing site in PepsiCo’s European network to be LEED certified (Read more). Along with global brand favorites like Lay’s and Cheetos, we’re developing products for locally relevant occasions, like Hrusteam breadsticks to enjoy with beer.
  • Visits to our Wimm-Bill-Dann milk farm and our sunflower farm which supplies heart-healthy sunflower oil for snack products. We’ve put in place a win-win model of growth through strong relationships with farmers. PepsiCo is the largest industrial buyer of potatoes and raw milk and works closely with them to improve quality and efficiency.
  • Tour of the Nikolaev plant in neighboring Ukraine where we produce carbonated soft drinks and process fruit for juice. In Russia, we’re the juice category leader with a healthy portfolio of local brands thanks to the recent acquisitions of Lebedyansky and Wimm-Bill-Dann.
  • Stops at customers in Moscow, Rostov, Nikolaev and Odessa (Ukraine) to view our products from the consumer lens, which include organized trade outlets, smaller traditional trade store kiosks and food service settings. PepsiCo occupies a tremendous amount of shelf and cooler space and is often a customer’s biggest supplier. This was also a chance to see Russia’s Power of One approach, which finds synergies through the integration of food and beverages across supply chain, customer interface and consumer promotion. Along the way, the reporter also spoke with several people from our Russia team who provided our overarching strategy and why we believe we’re uniquely positioned to capture long-term growth in this thriving market. The winning formula involves having a well-balanced offering of juice, dairy, snacks and beverages that appeal to all demographics and are consumed from breakfast through evening.

    Bringing someone from outside PepsiCo was a unique opportunity and an invaluable way to demonstrate how PepsiCo colleagues are executing our strategy in the marketplace every day.


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