Pepsi products are sold in Huangpu District, Shanghai, Jan. 15, 2023. (Photo/VCG)
American food and beverage company PepsiCo is committed to further expanding its presence in China while remaining committed to accelerating its investments in the country, with the aim of providing consumers with better quality products with more healthy options and creating a positive impact on society and the environment.
“PepsiCo will continue to invest in the country while seeking innovative solutions that drive efficiency and growth and create deeper business ties,” said CD Glin, PepsiCo’s global head of social impact, on the sidelines of the World Economic Forum’s 15th annual New Champions Meeting, or Summer Davos 2024, last week.
“We plan to stay in China for decades after 43 years of existence. We want to continue to grow 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,” Glin said.
PepsiCo will continue its “In China, For China, With China” policy, 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 really 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 factories across the country, accompanied by the company’s efforts to create social impact, such as supporting rural revitalization, promoting healthier food options and ensuring access to clean water in rural areas, he said.
The company this month opened a food production base in Xi’an, Shaanxi province, with a total planned investment of $180 million, which is also the company’s first plant in northwest China and the fifth major investment in China in the past five years.
The plant, which is expected to begin trial operations in September 2025, hopes to become a new benchmark net-zero emissions plant, PepsiCo said.
PepsiCo is committed to innovating its product portfolio, with a focus on reducing sugar, sodium and fat, 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 foster closer collaboration with China, Glin said.
Industry experts believe that foreign companies are increasing their investments in the gigantic Chinese market, with optimism about the country’s economic prospects.
According to AmCham China, U.S. investors are increasingly optimistic about China’s economic prospects. Half of its members consider China to be one of their top three global investment destinations, according to a report released in February, an increase of 5 percentage points from a year earlier. The report also highlights that China is a key source of talent and innovation, strengthening the global competitiveness of U.S. companies.
Pan Yuanyuan, an associate researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, believes that China’s rich range of innovative application scenarios, supported by favorable policies and a vibrant market, will continue to attract global investors.
Investment opportunities will remain particularly strong in emerging industries and new business models, he said.
PepsiCo is confident in the advanced opening of the Chinese market and the robust development of the country’s economy. The company is committed to increasing its investment in China and creating more social impact with its “pep+” initiative, Glin said.
“We are optimistic about the Chinese market, confident in our ability to succeed in such a vast and promising environment, and we have full confidence in our operations and investments in China,” he said.
