Give us a brief introduction to yourself.
I have been with PepsiCo for 14 years. I joined after four years in management consulting in telecoms and digital and an MBA at Insead. I have held marketing, sales and finance roles in the Iberian business unit. Then I took my first general manager assignment for three years in Central Europe based in Warsaw and the past three years in my current role based in Geneva.
Give us an introduction to PepsiCo and the role of your unit.
PepsiCo products are enjoyed by consumers a billion times a day in more than 200 countries and territories around the world.
We generated approximately $63bn in net revenue in 2016, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1bn each in estimated annual retail sales.
We believe that continuously improving the products we sell, operating responsibly to protect our planet and empowering people around the world is what enables PepsiCo to run a successful global company that creates long-term value for society and our shareholders.
Our nutrition category encompasses Pep fruit and veg, and grains businesses – the other two Pep categories are snacks and social beverages.
Give us a brief introduction to the Greenhouse innovation initiative.
The PepsiCo Nutrition Greenhouse was launched in April 2017 to support breakthrough food and beverage nutrition brands aimed at European consumers. It has part of our commitment to open innovation and to collaborating with the entrepreneurs and innovators helping to shape the food and beverage industry.
The program helps us realise our “performance with purpose” goal of transforming the portfolio and bringing more convenient nutritious options to consumers.
What have been the objectives of the Greenhouse?
Eight companies were chosen based on the following criteria.
Product and brand qualities – based on nutrient profile, potential health claims, natural or organic sourcing, clean label and other factors that appeal to consumers, as well as the obvious qualities of taste, brand presentation and value for price.
A clear focus on consumer health – includes human performance, condition-specific functionality and healthy lifestyles and life stages. There has to be a scalable business model and uniqueness in the market.
Explain the process you followed.
The program was open to nutrition entrepreneurs with a market-ready health and wellness brand. The brand or company should have sales of €2m ($2.5m) or less and not be in direct or indirect competition with PepsiCo or any of its brands. Applications to the program were submitted using a secure online process.
An independent adjudicator initially assessed entries to determine eligibility for the program, and then a selection committee made up of industry food and investment experts and PepsiCo professionals evaluated submissions. Up to eight companies were chosen and received €25,000 as well as entry to the six-month incubator program. Among them were:
- Jimini’s from the UK on edible insects.
- Your SuperFoods from Germany on Plant based supplements.
- Divingmar from Spain on Kumbu seaweed.
- Frecious from Switzerland on Veggie purees.
Along with the funding, the selected entrepreneurs benefited from access to PepsiCo experts who helped them in areas such as brand optimisation, product development, supply chain management, customer acquisition and distribution. The program also addressed critical early-stage business issues, like business planning, corporate structuring and fundraising.
At the end of the program, Erbology was granted an additional €100,000 to support further growth. The criteria to select the recipient of this money was:
- Growth of the business or specific products over the course of the program.
- Specific impacts and use of the €25,000 grant and measurable results from that.
- Level of collaboration with their PepsiCo mentor as well as breadth and depth of contacts with other departments.
- A rating from each committee member.
In accepting the €100,000 grant, Erbology agreed to grant PepsiCo exclusive rights for a period of six months to make an equity investment on mutually agreed terms.
Describe the experience and skills of your team members. How have you tried to engage the core business people from your parent company?
The selected companies had the chance to collaborate with experienced executives who worked with them to help realise their market potential. The mentors were from different areas of expertise, such as marketing, public policy and communications, trade marketing and sales, and from different markets across Europe, like the UK, Spain or the Balkans. The mentors helped participating entrepreneurs to gain access to PepsiCo experts who helped them in the areas they needed the most.
- Gaining distribution and listings in large retailers – our top key account managers were on hand.
- Cashflow – our top finance experts were on hand.
- Cut-through brand marketing – our top marketers were on hand.
- Building a sustainable supply chain – our supply chain experts were on hand.
What benefits have you seen in PepsiCo?
We launched the Nutrition Greenhouse to partner the best and the brightest entrepreneurs in the food and beverage nutrition space. Our goal was to work with breakthrough brands that share our vision to deliver more convenient great-tasting everyday nutrition products and we have achieved just that with these eight stand-out companies.
Everyone who has worked on this program has given their all and embraced the learning experience. Not only have the entrepreneurs had the benefit of tapping the vast knowledge and experience we have in PepsiCo, but the mentors, as well as other members of our team that have joined in, have benefited from experiencing first-hand the pace and challenges of entrepreneurial life. This program has reminded them of the importance of being curious and pragmatic about overcoming challenges, also to be passionate about your products and what you do.
When you are not venturing what do you do to relax?
I enjoy reading about global state of affairs and novels, working out and spending time with my wife and four kids.
You can listen to this and other interviews on a podcast, subscribe at gaulesqt.podomatic.com. Andrew Gaule supports innovation programs and collaborations with “innovative new value chains” in global organisations. If you have interview ideas, email andrew.gaule@aimava.com or James Mawson jmawson@globalcorporateventuring.com