PepsiCos Expenditure on Research & Development Pays Off

Published Date : Sep 21, 2015

PepsiCo acquired the Quaker Oats brand in 2000 for approximately US$ 13.4 Billion – a product that has for a long time been known for its oats that take over half an hour to cook.

However, the 114 year old brand of Quaker Oats is attempting to offer consumers who are hard pressed for time, granola bars and cups of instant oatmeal.

Vice chairman as well as chief scientific officer of PepsiCo Dr Mehmood Khan said that as the world graduated from the baby boomer generation to one that is characterized by the millennium, time has become more and more restricted. 

This is just one of the many efforts and changes made by food and beverage giant in order to alter the way it thinks about new products and develops them. Khan is a member of the executive team at PepsiCo, which is being headed by chief executive officer and chairman Indra Nooyi. This executive team is aggressively moving toward creating products that tackle changing trends such as growing interest of the consumer in convenience, wellness, and health. 

PepsiCo’s expenditure on research and developed has risen by 37 per cent since 2011 to US$ 718 million. These funds have been directed toward hiring more food scientists and nutritionists. The money is also being used to include chefs in the taskforce, who will scour the world looking for new and unique flavors for beverages and snacks. 

The collaborative efforts have resulted in numerous significant new products. In 2013, the 80 calorie Mountain Dew Kickstart was launched and today the product is bringing in around US$ 400 million in terms of annual sales in the United States. This is not too bad for a beverage that was targeted at a set of consumers who prefer carbonated caffeine first thing in the morning but wish to reduce the intake of calories.