PepsiCo announced officially on 13 November 2012, the opening of an innovation center in Shanghai. The Innovation Centre is the second largest research center after the PepsiCo North America's one. The company has invested $ 40 million in this new structure.
The facility will serve as a hub in the pursuit of product innovation, packaging and equipment for PepsiCo businesses across Asia. PepsiCo it's 22 brands (the main ones: Quaker, Tropicana, Gatorade, Frito Lay's and Pepsi-Cola) that generate more than $ 1 billion in sales each one per year, nearly $ 65 billion of net revenue for all.
The Shanghai center
is designed to facilitate innovation with greater speed and efficiency throughout the R & D process. Saad Abdul-Latif, CEO of PepsiCo Asia, Middle East and Africa, said that innovation has always been a growth engine for PepsiCo and has built a portfolio of brands including food and beverages that are recognized and acclaimed by consumers worldwide.
For example, this series of new flavors of Lay's chips are very popular in Asia, with the flavor of the tea-lemon or cucumber, or a related aromas from typical regional dishes such as fish soup and seaweed. This probably explains the position of Lay's leader in Asia.
Another example, Tropicana juices that have a different taste and texture in China, to adapt to the Chinese taste preference. Or, the Quaker brand Nutrigo, which produces a powder oatmeal that provides specific nutritional benefits for Filipino consumers.
China and the Asia-Pacific region are key parts of the general plan of growth for PepsiCo. PepsiCo has almost tripled its business in emerging markets of 8 billion in annual net sales in 2006 to 22 billion in 2011.
While Pepsi has struggled to boost sales in the mature markets of the United States, its sales in China surged 9% in volume last September.
However, in the soft drink beverage industry, PepsiCo
holds a market share of 4.4% in China, behind Coca-Cola 15%, according to the latest data from Euromonitor International.
PepsiCo continues to build global capacity for research and development for its brands to differentiate themselves in the fast-growing market and very competitive.
China is the second largest market for the company in volume after the United States, we understand now the important role of technology and innovation for companies like PepsiCo in China and Asia-Pacific also in order to achieve new breakthroughs in other parts of the world.
PepsiCo has also opened a factory Frito-Lay in Wuhan, China, signing an agreement to form a strategic alliance with Suntory drinks in Vietnam, where PepsiCo is leading soft drinks industry.