PepsiCo to 'continue investing' in Chinese market
US food and beverage company PepsiCo vows to further expand its presence in China while staying committed to accelerating its investment in the country, aiming to provide consumers with higher-quality products with more health options, and create a positive impact on society and the environment.
"PepsiCo will continue investing in the country while seeking innovative solutions that drive efficiency and growth, and create greater business linkages," said C.D. Glin, global head of social impact of PepsiCo, on the sidelines of the World Economic Forum's 15th Annual Meeting of the New Champions, or 2024 Summer Davos, last week.
"We envision being in China for decades more after being here for 43 years. We want to continue growing our business by helping communities thrive, which aligns our social impact with our business priorities, and we also want to create business opportunities in the country," said Glin.
PepsiCo will continue with "In China, For China, With China", leveraging its industrial chain cluster effect to contribute to China's economic and social development, he said, adding that, "Our growth in China is unwavering in terms of our commitment to China, so we can actually think about long-term solutions, including our social impact work and sustainable efforts."
Over the past decade, PepsiCo has continued to invest in China, with investments in 10 food plants across the country, accompanied by the company's efforts to create social impact, such as supporting rural vitalization, promoting healthier food options and ensuring access to safe drinking water in rural areas, it said.
The company broke ground on a food production base in Xi'an, Shaanxi province, this month, with a projected total investment of $180 million, which is also the company's first factory in Northwest China and the fifth major investment in China over the past five years.
Expected to begin trial operations in September 2025, the facility hopes to become a new net-zero benchmark factory, PepsiCo said.
PepsiCo is committed to innovating its product offerings, focusing on reducing sugar, sodium and fat content while introducing new products with a diverse range of ingredients tailored to the Chinese market. The company's strategy is twofold — to meet consumer health preferences and to foster deeper collaboration with China, Glin said.
Industry experts believe foreign enterprises are increasing their investment in China's gigantic market with optimism about the country's economic outlook on the rise.
US investors are increasingly sanguine about China's economic prospects, according to AmCham China. Half of its members view China as one of their top three global investment destinations in a report released in February, a 5 percentage point increase year-on-year. It also highlights China as a key source of talent and innovation, enhancing US companies' global competitiveness.
Pan Yuanyuan, an associate researcher at the Chinese Academy of Social Sciences' Institute of World Economics and Politics, believes that China's rich array of innovative application scenarios, supported by favorable policies and a vibrant market, will keep attracting global investors.
Investment opportunities will remain particularly strong in emerging industries and new business models, he said.
PepsiCo is confident in the advanced opening-up of the Chinese market and the robust development of the nation's economy. It is dedicated to increasing its investments in China as well as creating more social impact with its "pep+"initiative, said Glin.
"We are optimistic about the Chinese market, confident in our ability to succeed in such a large and promising environment, and we have full confidence in our business and investment in China," he said.
