Nutrition, Diet & Health – the role of the Food Industry

1. Nutrition, Diet & Health – the role of the Food Industry Dr Sue Gatenby Senior Director Nutrition PepsiCo Europe TGDF Food Congress 2013 Antalya, Turkey

2. High Mortality Developing Countries Low Mortality Developing Countries Developed Countries World Deaths attributable to selected leading risk factors and the role of nutrition Blood pressure Tobacco Blood Cholesterol Underweight Unsafe sex Fruit and vegetable intake High body mass index Physical inactivity Alcohol Unsafe water, sanitation and hygiene Indoor smoke from solid fuels Iron deficiency Urban air pollution Zinc deficiency Vitamin A deficiency Unsafe health care injections * * * * * * * * * 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 * Number of deaths (000’s) = Nutrition Related * Source: WHR 2002

3. What impact can the food industry have? • RENOVATE • Reduce nutrients of public health concern • Reduce portion size • INNOVATE • Include more positive nutrition, • Develop new formats and respond to consumer needs • COMMUNICATE • Inform consumers and guide choices – labelling, marketing • PROMOTE • Responsible positions on marketing & promotions • Promote healthy lifestyles – internal employees/consumers • Nutrition science to inform future new product development and credible claims

4. PepsiCo – a global company with a diverse portfolio

5. Performance with Purpose – our way of doing business Environment Health People Lead in reducing food waste globally Improve health, helping tackle global obesity New opportunities for millions of young people

6. A very clear focus on human sustainability Obesity levels remain high • Human Sustainability Goals • Continue to refine our food and beverage choices to meet changing consumer needs by • reducing sodium, added sugars and saturated fat, and developing a broader portfolio of product • choices. • Continue to provide clear nutrition information on our products and sell and market them • appropriately to our consumers, including children, in line with our global policies and • accepted global standards. Consumers are looking for help

7. Goals to shift our portfolio in the right direction REDUCING NUTRIENTS OF PUBLIC HEALTH CONCERN • Reduce the average amount of sodium per serving in key global food brands • Reduce the average amount of saturated fat per serving in key global food brands • Reduce the average amount of added sugars per serving in key global beverage brands • NCREASING POSITIVE NUTRITION • Increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in our global product portfolio.

8. Innovation Establishing best practice and creating change in the UK Sat Fat / 30g 4.9g Sat Fat / 30g 0.8g Innovation Innovation 70% R&D Budget Healthier Innovation Re-launch Commitments Innovation Since 2005 : Only advertise NO sugar variants Bold H&W commitments • Portion size • Salt reduction targets • Driving Juice & Wholegrain Early signatory to new front of pack scheme H&W commitments ... Reformulation Reformulation Innovation Sat F -70% by 2006 Salt -55 to -70% by 2008 100% natural ingredients 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 2012

9. Despite our heritage perceptions do not match reality Reducing water consumption • The reality ... • Consumers perceptions... Reducing water consumption Sat Fat per portion Fruits Natural Vegetables Potatoes Calories per portion Dried Fruit Yogurt Nuts Crackers Chocolate Cereals Salt per portion Biscuits Processed Cereal Bars Crisps Cake Unhealthy Healthy Nutritional values : Per portion size

10. Good progress on renovation and innovation in Turkey Innovation 5 A2C products launched – Cheetos Electric and 4 others Sweetos duo launched Lays in Olive Oil Launched Innovation Launch Baked snacks Cheetos Star 25% Less fat, 10% oat in base and source of fibre New product CheetosRings – 80% less sat fat, chick pea in base a source of protein New product CheetosSweetos– source of protein, source of fibre 25% less fat New product - Sweetos Banana 2 Cheetosproducts meeting A2C guidelines Tropicana Launched Lays Baked Launched Lays Chips Cheetos: 25% reduction in sodium Cheetos: Cheetos: Cheetos: 40% sat fat reduction 10% fat reduction Reformulation Innovation Further 40% sat fat reduction = 80% reduction in total Further 20% reduction in sodium in core 40% reduction sat fat Lays Paprika and Yog & Herbs 10% sodium reduction Lays Light 25% less salt Pepsi 4% reduction in sugars Yedigum 30% reduction in sugars Fruko 49% reduction in sugars 2007 2008 2009 2010 2011 2012 2013

11. -5% -18% -5% -18% Turkey actions on H&W succeeded 36% sat fat and 10% sodium reduction based on 2006. Global target 2006-2020 Sat Fat Reduction : 15% Global Target 2006-2015 Sodium Reduction : 25% Sodium reduction/serving Sar fat reduction/ serving Frito Lay Turkey already exceeded Pepsico Global target in sat fat reduction in 2010 and reduction journey continues. Total sat fat reduction to 2013 is 36% (base 2006) Frito Lay Turkey reduced sodium by 10% by 2013. (base 2006). Journey continues. 2011 2013 2006 2010 2013 2006

12. Helping consumers to make healthier choices 100 Calories less per day/every day, can start to make a difference How might we “nudge” consumers to “Make healthier little differences” more often? Communicate Innovate Renovate Promote

13. An active Partner for Change • NourishCo, a joint venture between Tata Global Beverages and PepsiCo, launched Tata Water Plus, India’s first nutrient water - targeted to mitigate nutritional gaps in average Indian diet. • In Mexico,PepsiCo Mexico also entered into an agreement with the Mexican Ministry of Social Development to produce and sell at cost a line of Quaker fortified oat and peanut food products specifically for moderately malnourished pregnant and breast-feeding women and children (2-5 years old). • The PepsiCo Foundation provided a $3.5 million grant to World Food Programme(WFP), the world’s largest humanitarian agency, to address malnutrition by developing a locally sourced, nutrient-rich, ready-to-use supplementary food. • PepsiCo South America Foods is partnering with Embrapa, a Brazilian agricultural research corporation, to develop snacks based on biofortifiedingredients rich in Vitamin A, iron and zinc. • PepsiCo Europe donated $335,000 to WFP to combat hunger in Benin, on the West African coast. The meal program helped to feed more than 170,000 children in 364 primary schools. PepsiCo Europe has also signed up to the 5 WHO Commitments. • PepsiCo Turkey has a Pledgeto only Advertising to Children under the age of 12 products which meet strict nutrition criteria.

14. Conclusions and the way forward...... • The Food Industry has a role to play in public health • PepsiCo, through PwP has created a vision and a mission for change • Established stretching global targets • Provided locally relevant incentives and internal codes and self regulation • Engagement with stakeholders is key • Partnerships in the future will secure success • We need to motivate and nudge consumers to make the healthier choices and make it • easier for them to do so

15. Thank You sue.gatenby@pepsico.com