We have to be authentic to our consumers. And we do that
The material was created in cooperation with PEPSICO
How are consumers changing? How do these changes most impact PepsiCo's strategy in Poland?
Consumer trends in Poland reflect global changes in shopping preferences. For several years, we have been observing the growing popularity of sugar-free drinks and snacks with reduced salt and fat content. Forecasts indicate that in the coming years, such products will become the choice of an increasing number of Poles, which is why we are adjusting our brand portfolio so that every consumer can find something for themselves.
One of the key factors shaping the market is the entry of Generation Z into it. It is the Generation Zs who are becoming an important group of recipients for us, who, however, differ significantly from their predecessors, the Millennials and representatives of Generation X. For them, shopping - including grocery shopping - is primarily a digital process, in which personalization plays a key role. They expect brands to be authentic, transparent and provide full information about the origin and method of production of both the products themselves and their packaging. What's more, meeting these expectations is not just an added value for them - it is a condition that determines purchasing decisions. In response to these changing needs, we share knowledge and show our activities. And we have something to be proud of. Our chips are made from Polish potatoes grown in accordance with the principles of regenerative agriculture on over 70 farms across the country. All of our production plants are 100% powered by renewable energy - from the sun or wind. The snack packaging is recyclable, and our beverage bottles (excluding the label and cap) are made from 100% recycled plastic. from recycled rPET plastic. We are aware that responsibility for the planet is becoming one of the key criteria for consumer purchases. As one of the industry leaders, we feel obliged to set standards and make ambitious commitments. Our ultimate goal is to achieve net zero emissions throughout the supply chain by 2040.
What are the most serious challenges for companies operating in your sector – beverages and snacks? How is PepsiCo coping with these challenges, especially on the Polish market?
The consumer profile changes every few years, which is a natural phenomenon in a dynamically developing market. However, the challenges that have the greatest impact on our business do not result solely from these changes. Like most companies, we also struggle with the effects of inflation, which affects all aspects of our business. To produce the highest quality products, we need the highest quality ingredients - water, sugar and fruit juice in the case of drinks and spices, oil and potatoes in the case of crisps. Year by year, the costs of obtaining these raw materials are getting higher, and energy costs are also increasing. The biggest challenge is therefore finding a balance between the increase in production costs and the price of our products on store shelves. The rising cost of living has made Polish consumers increasingly careful about planning their household budgets. Promotions and discounts, which have always been effective sales tools, have become even more important. We are therefore constantly making the price and promotional offers that we direct to our business partners more attractive.
In this situation, does the company plan to enter new categories or product segments?
In Poland, we have been known for years primarily in the beverage and snack category. We can proudly admit that it is in these categories that we have managed to join the group of market leaders. As a company with a global reach, we offer a variety of products on different markets. In Spain, PepsiCo produces, for example, Gazpacho Alvalle, and in the United States, Near-East rice and groats, Nut Harvest nut mixes or Quaker Oats oatmeal. Although we do not plan to expand our product range on the Polish market in the coming years, the company's experience in other categories means that this would not be a complete novelty for us.
How do you respond and will you respond to the increasingly common need for a healthy lifestyle?
As a manufacturer of carbonated drinks and salty snacks, we constantly monitor changes in dietary trends. A few years ago, a binary approach dominated, consisting in completely eliminating specific ingredients or products from the diet. Currently, more and more people practice a long-term and holistic approach to meals - they allow themselves small pleasures, such as our products. This trend is also reflected in market data - the value of the categories to which our brands belong is constantly growing. In addition, to meet the needs of consumers who, for various reasons, limit their consumption of sugar, fat and salt, we are constantly expanding our portfolio with products that are free of them or contain them in smaller amounts, such as Pepsi Zero, Lipton Ice Tea Zero or Lay's Oven Baked.
So what projects will be the company's priority in Poland in 2025? What are the company's main goals on the Polish market for this year?
The year 2025 is primarily the year of implementing the deposit system. As of October 1, the related regulations will come into force, which will significantly change not only the obligations of producers, but also the habits of consumers. Aware of our role in this process, last year, together with other leading beverage producers, we established the National Deposit System Kaucja.pl. Our priority is the efficient functioning of the system, which will enable the effective collection of raw material for the production of rPET packaging - a key element of the closed-loop economy. In 2018, we were the first among the market leaders to introduce 100% rPET bottles (without labels and caps) to our portfolio. We currently use this material in most of our packaging.
In parallel, we are working on educational programs aimed at consumers to help them understand both how the deposit system works and the justification for its introduction. We believe that increasing pro-environmental awareness will help consumers develop the habit of returning used bottles. It is worth remembering that after the launch of the deposit system, both cans and bottles should be returned intact – without crushing.
Is PepsiCo planning to invest in digitalization or development of e-commerce channels in Poland?
One of the most important factors influencing consumer choices is convenience. A wider selection of products, avoiding queues, the ability to compare prices and express deliveries mean that more and more consumers decide to shop digitally – also in the case of FMCG products. Observing these trends, we are constantly investing in the development of e-commerce channels.
We focus on solutions that aim to eliminate paper documents and cash in relations with our trading partners. Recently, we have implemented several important projects that bring us closer to achieving these goals.
An excellent example of the digitalization of our business is the launch of the PepHub application. It is aimed at customers from the HoReCa sector and covers four key areas: orders, service, financial management and information exchange. The ability to manage cooperation through the application is a completely new quality in business relations. The number of orders placed by PepHub in the first weeks of the platform's operation is a confirmation that our customers are open to modern, digital solutions. Despite the development of digitalization, we care about maintaining contact with business partners. In order for our sales representatives to spend more time talking to people responsible for specific points of sale, we have equipped them with tools that allow them to scan store shelves. Thanks to this, they can spend the time saved on building relationships.
In line with the assumptions of our sustainable development strategy pep+ (PepsiCo Positive), we have also been testing paperless delivery for several months. Considering the huge number of daily deliveries in the FMCG industry, we are convinced that the digitalization of this area of our business will bring measurable benefits to the environment.
How important is the Polish market for PepsiCo's global operations? How do you intend to develop on the Polish market?
Poland has many advantages that make our market play a key role not only in the European but also in the global strategy of the company. We have been operating on the Vistula for over three decades - and for good reason. The central location and developed infrastructure facilitate the transport of products both in the country and to other markets of the European Union, and the high level of expert staff is an added value. Our long-term plans for Poland are related primarily to the sustainable development strategy - pep+. In recent years, we have invested significant funds in the development of four existing production plants and the construction of a fifth. The plant in Święte, opened in 2023, was the largest, most modern and most environmentally sustainable PepsiCo factory in Europe on the day it started operating. It is a "greenfield" investment, designed with further expansion in mind. Among other things, we are planning further production lines so that the plant becomes a model for other PepsiCo factories - both in terms of efficiency and minimal impact on the environment. In addition, last year we invested in photovoltaic installations in four of our plants, covering an area of 4 hectares and reaching a capacity of almost 6 MWp. This year we plan to increase their capacity by another 3 MWp. In addition to investing in our own renewable energy sources, we are also focusing on the development of electric transport - both in terms of company cars of our employees and logistics.
At the beginning of 2025, we completed an important environmental project at our plant in Michrów. We reduced the weight of the rPET bottle cap and thread by 1.2 grams, which means that we will reduce plastic consumption by as much as 700 tons per year.
The material was created in cooperation with PEPSICO
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