October 21, 2014
PepsiCo India’s revenue grew in double digits for nine months ended September 6, 2014 making the country amongst the fastest growing emerging markets for the global beverages and snack giant.
“Our developing and emerging markets business has proven to be resilient with high single-digit organic revenue growth year-to-date, including double-digit growth in Egypt and India,” PepsiCo Inc Chairman and CEO Indra Nooyi said in an earnings call.
“Even though the political environments are relatively stable, GDP and consumer spending growth remains mixed.
Despite these challenges, our businesses performed well in the third quarter and year-to-date,” she added.
Other developing markets for the company such as China, Brazil and Turkey recorded high single digit growth while revenue in Russia grew in mid single-digit.
During the third quarter ended September 6, 2014 PepsiCo’s Asia Middle East and Africa (AMEA) region reported 11 per cent growth in organic revenue and net revenue.
It was driven by 11 percent volume growth in snacks and 3 percent volume growth in beverages.
Globally, PepsiCo reported organic revenue growth of 3.1 percent and net revenue growth of 2 percent in the third quarter.
PepsiCo has termed India as “high priority market”. In November 2013, PepsiCo said it will invest Rs 33,000 crore in India by 2020 to ramp up operations.
The company said the investment will be utilised to strengthen its capability in various strategic areas including innovation, manufacturing, infrastructure and agriculture.
India has been one of the top five markets of PepsiCo and it has eight brands which clock turnover of over Rs 1,000 crore in the market.
The company has 42 plants across India and apart from cold drinks like Pepsi, 7UP, Mirinda and Mountain Dew, it sells snacks under brands such as Lehar, Uncle Chipps and Kurkure.
This kurkure plastic burning rumor has been going on for quite a while now but it is completely untrue.
The reason it burns like plastic because it contains carbohydrate in the form of corn starch and 30% oil, which causes Kurkure to burn.
For that matter try burning any kind of namkeens or gol gappas, the result would be the same. The information shared here is, therefore, totally baseless. AIIMS (All India Institute of Medical Science) has also issued a letter saying that they have not issued any such chain mails. For info, visit http://bit.ly/Kurkure-FAQ.
Now, pepsiCo will take strict legal action against unscrupulous elements spreading these rumours and has also issued a public notice in this regard. Please visit http://kurkure.co.in/CautionNotice.pd
Enjoy Kurkure and Do not Spread Rumors!
February 17, 2013
PepsiCo’s salty snack brand Kurkure’s latest ad campaign has arrived at a rather appropriate time. The Rs 9,400 crore Indian snack market is growing at a very healthy pace, about 25 per cent a year and as a recent survey by VML Qais indicates Indians, the 18 to 30 year old lot, are particularly fond of a crispy snack in air-tight plastic packaging. And in comparison to consumers in Thailand, Indonesia, Malaysia, Hong Kong, Vietnam, Korea, Philippines and Singapore, Indians are most likely to try a product based on its advertising. However, the injection of several new aggressive players has slightly soured the taste of victory for Kurkure, that has built a presence in the market since 1999.
However, with the introduction of the new Kurkure family, the brand is trying to establish its Indian roots again. Last year PepsiCo brought on board five new brand ambassadors. A list that includes actors Parineeti Chopra, Boman Irani, Farida Jalal and Kunal Kapoor, among others. This new family (taking over from actress Juhi Chawla’s fictional clan) will introduce Indian consumers to new variants of Kurkure. According to Vidur Vyas, marketing director – foods, PepsiCo India, it was time to refresh the snack brand’s identity. “The snack category has grown exponentially over the past few years. Different consumers have varied snacking needs and we will introduce more products, flavours and packs, covering everything from bite experience to packaging and eventually create occasions of consumption.
With this campaign we are on our way to create a Kurkure umbrella brand,” he says. The campaign began with one simple brief ‘Tedha Hai Par Mera Hai’ a tagline that has been around for a while now, since 2008 to be precise. “We were particular about just one thing – it had to be a family,” says Vyas. The Kurkure bunch may not be a mirror image of the average soap family; it is however a caricature of the modern Indian family and its changing dynamics, a modern twist on tradition.
There’s the sassy young bahu (daughter-in-law) riding a bike in traditional gear, her husband the suit with a heart full of Bollywood dreams, his older brother who is a father playing video games away from the steely glare of his loving wife and their child who can hardly tear himself away from his snack pack. And, finally, there’s the grandmother, the kind who would insist her grandchild call her aunty rather than dadi in public.
In addition to these characters Vyas tells us more characters will be introduced as the story unfolds. For instance, an NRI from Italy to introduce a new flavour of the snack called Punjabi Pizza. And that’s not all; there are more, for instance Andhra Bangkok Curry and Rajasthani Manchurian.
Alright so perhaps they are not as “modern” as the Pritchetts and Dunphys from the American sitcom ‘Modern Family.’ But they are the desi version of the quirky clan everyone wants to hang out with and can relate to. Consumers have the option to go online and learn a bit more about individual members. Eventually, as the campaign progresses they will have the chance to form more meaningful interactions with the characters and become its extended family of sorts, says Vyas.
It is most certainly a family-pack size, five pronged approach. However, says Bobby Pawar, chief creative officer, JWT India, for now it is important to establish these characters and familiarise Indian consumers with them via mass media before jumping prematurely into social media to deepen engagement. “There is no parallel for this in advertising,” says Pawar, “we are looking at it more from the point of view of a sitcom. And when new situations and characters are introduced the interactions between them will reveal more about each member of this family.”
And let us not forget the brand that is an important part of this whacky tribe. According to Priti Nair, founder, CurryNation, the biggest challenge for brand Kurkure going forward will be to find an integral spot for the brand in the family and its story as it evolves. “Episodic advertising is great but the brand has to be incorporated in a meaningful fashion, only then will it work. That itself is quite an exercise,” she says. Add to that the fact they can’t just depend on the characters. The creatives in charge will have to find equally absorbing plots and situations to put them in, and not just of the Kyunki Saas Bhi Kabhi Bahu Thi or even the Uttaran variety.
February 17, 2013
ITC Foods has launched a new TVC for its Bingo Tangles. The TVC created by Ogilvy & Mather Bengaluru went on air on 15 January. The TVC uses trademark humour associated with Bingo to highlight the brand’s proposition of being irresistible – ‘Khaoge to khilaoge’ (If you eat it, you will share it).
The TVC starts with a bus conductor trying to balance himself in a bus that is precariously hanging from a bridge. The bus is in danger of falling down, so passengers huddled at the back shout out to the conductor to stop moving. Even the bus driver warns him not to move as the bus will surely fall down if he does. The scared conductor assures him that he will not move. The driver starts offloading things such as a tiffin carrier and his wife’s photograph to lessen the weight of the front of the bus. The conductor spots a packet of Bingo Tangles and without much hesitation leans ahead to pick it. He opens the pack and starts munching. As soon as he does, fireworks appear and he feels the urge to share it with the driver. Much to the horror of the passengers, he walks towards the driver and offers it to him. The driver is horrified as well. The voice over says, “Khaoge to khilaoge kyunki Bingo Tangles ke har strand mein hai itna swad ki khaoge toh khilaoge na. Naya Bingo Tangles.” The TVC ends with the driver, conductor and one of the passengers sharing the Bingo Tangles after the bus has fallen down the bridge. The conductor says, “Guru bola tha na, Khaoge to khilaoge.”
Joono Simon, executive creative director, Ogilvy & Mather, Bengaluru, said, “The premise of the TVC is built around the concept of sharing. Bingo Tangles is basically irresistible and one would drop everything and rush to grab one. This is the starting point from where we developed the commercial. The brand has always used a whacky sense of humour and the campaign is in line with the overall tonality of the brand.”
New Delhi, May 24, 2011: Kurkure, India’s popular and fun loving family Namkeen brand from PepsiCo India has always taken pride in the fact that it’s made from trusted ingredients found in Indian kitchens.
And now in a first, Kurkure has launched 3 new products under the “Ingredients of India” range made with a special ingredient found in every home, Dal ! Of course, Kurkure has given its signature twist to all 3 products. Using a combination of popular dals & locally relevant flavours from various regions of India, Kurkure has come out with 3 exciting variants – Mumbai Chatpata Usal, Bengali Jhaal & South Spice Mix.
The three variants were launched today by popular bollywood star and Kurkure brand ambassador, Juhi Chawla. “Kurkure has always been a snack that I have enjoyed eating and being associated with since 2004 as it’s a fun snack brand par excellence that has delighted consumers by focusing on quality & keeping up with changing needs. These three new variants made with different dals are another example of relevant innovation people have come to expect from Kurkure” said Juhi Chawla.
On the occasion Nalin Sood, EVP Marketing – Foods, PepsiCo India, said “Kurkure always been at the forefront of innovation in the snacks category by bringing locally relevant, great tasting & quality products to Indian consumers. We are confident that consumers will enjoy these 3 products made using dals. It will be our endeavor to continue to come up with exciting innovations that continue to delight consumers.”
The three new ingredient based Kurkure will be available in retail outlets available across the country in packs of 23g for Rs 5 (inclusive of all taxes), 50 g for Rs 10(inclusive of all taxes), 120g for Rs. 20(inclusive of all taxes). The launch of the three new variants will be aggressively promoted through a 360 degree marketing campaign .
Additional notes on Kurkure:Kurkure, which was fully developed in India as a great tasting ‘namkeen’ snack, has established a strong connect with consumers across India. It has been at the forefront of product and marketing innovation and has constantly re-invented itself to remain relevant to the Indian ethos and culture. All ingredients used in making Kurkure are trusted kitchen ingredients used daily in all households for preparation of various food items. Cooked in Rice Bran Oil, Kurkure has 40% less Saturated Fat, Zero Trans Fats and No Added MSG.
Not only has Kurkure provided an inimitable taste and superior quality, it has brought fame and joy to many through its ‘Kurkure Chai-time-achievers’ face on pack initiative and ‘Kurkure Spend Time With Your Family’ program. In 2010, Kurkure launched an ingredient innovation with the launch of Kurkure made with Rajma, which was a big hit with consumers.
GM, Corporate Communications
PepsiCo India Private Limited
November 22, 2010
There been a legal notice issued by PepsiCo India to the movie producers of an “Adult Entertainment Film” for naming their movie as KURKURE and diluting the snack brand. An initial enquiry conducted by PepsiCo has revealed that the said movie is a local Telugu movie and are unaware of the time of release of this movie. The word KURKURE used, has no obvious meaning in the Telugu language and the same appears to be deliberately adopted by the movie producers.
The word KURKURE is now exclusively associated with the PepsiCo and cannot be used by any one, without the express authorization of PepsiCo.
PepsiCo India has also issued a notice to other online properties carrying the movie in question titled KURKURE and/or its images, clips etc as the publication of such images, clips, etc is continuously damaging PepsiCo’s brand equity. It is taking a legal action against its producers and websites not ready to remove the published Kurkure movie from their respective properties.
PepsiCo is one of the leading manufacturers and sellers of beverages and snack products across the world. It is an active interest in India since many years. PepsiCo has two Group companies, PepsiCo (India) Holdings Private Ltd and Pepsi Foods Private Limited through which it conducts its business in India. It sells various branded beverages including Pepsi, 7UP, MIRINDA, etc and branded snack products including LAYS, CHEETOS, etc. They also manufacture, market and sell juices under the brand name TROPICANA and bottled water under the brand AQUAFINA.
KURKURE is one of best known snack products in the Indian market and is sold under the brand name/ trade mark KURKURE. The said brand was adopted by PepsiCo in the year 1999 for a snack product specially designed to suit Indian tastes. The status of the brand KURKURE especially in the category of snack products is incomparable. In fact, a recent report in Economic Times described KURKURE as one of PepsiCo’s “Iconice Brands”.
April 27, 2010
PepsiCo, Inc. /quotes/comstock/13*!pep/quotes/nls/pep (PEP 64.63, -0.39, -0.60%) today reported solid results for the first quarter of 2010, driven by the acquisition of its two anchor bottlers, volume gains in its worldwide snacks and international beverage businesses, balanced investments in value and innovation, and lower costs across its operations.
PepsiCo Chairman and CEO Indra Nooyi said: “PepsiCo’s broad portfolio performed well in the quarter as our operating agility and solid marketplace execution enabled us to deliver strong financial and operational performance. Our macrosnacks business gained share in key markets and we posted solid performance in beverages supported by the benefits of the acquisition of our two largest bottlers, growth in developing markets and improving top-line trends in North America.”
PepsiCo Chief Financial Officer Hugh Johnston said: “We delivered double-digit gains in both revenue and core constant currency operating profit in the quarter, while making incremental strategic investments in China and other key markets. Through rigorous financial discipline we generated $794 million in management operating cash flow, excluding certain items, which was a significant increase from last year. In the second quarter we are stepping up investments in innovation, R&D and infrastructure, all of which should help us accelerate our growth in the second half of the year.”
* Please refer to the Glossary for definitions of constant currency and core. Core results and core constant currency results are non-GAAP financial measures that exclude certain items. Please refer to “Reconciliation of GAAP and Non-GAAP information” in the attached exhibits for a description of these items.
Summary of First-Quarter 2010 Performance*
Net Operating Net Operating Operating
% Growth Volume Revenue Profit Revenue Profit Profit
—— ——– ———- ——– ——— ———
PAF 1 2 3 4 2.5 3
FLNA 1 1 9 2 10 10
QFNA (1) (3) (14) (1) (13) (12)
LAF 1 8 (5) 13 (13) (12)
PAB (4) 32 28 32 23 (83)
Europe (4)/(4)*** (3) 4 5 14 16
AMEA 13/10*** 18 12 23 15 17
Divisions 1/(0.5)*** 11 10 13 9 (17)
———- ———- — — — — —
Total PepsiCo (47)*
* The reported operating profit decline was primarily driven by items
excluded from our core results in both 2010 and 2009, including
restructuring costs in 2009, the net impact of mark-to-market
gains on hedges in both years, and in 2010, the currency devaluation
in Venezuela, a foundation contribution and an SAP asset write-off;
and with respect to the bottling acquisitions in 2010, merger and
integration costs and inventory fair value adjustments. Please
refer to the Glossary for the definition of Core.
**The above core results and core constant currency results are non-
GAAP financial measures that exclude merger and integration costs
associated with our acquisitions of The Pepsi Bottling Group, Inc.
(PBG) and PepsiAmericas, Inc. (PAS), inventory fair value
adjustments recorded in connection with our acquisitions of PBG and
PAS, $9 million of income (recorded in our PAB segment) related to
the currency devaluation in Venezuela, and certain restructuring
actions in 2009. For more information about our core results and
core constant currency results, see “Reconciliation of GAAP and Non-
GAAP Information” in the attached exhibits. Please refer to the
Glossary for definitions of “Constant Currency” and “Core”
All references below to net revenue and core operating profit are on a constant currency basis.
First-Quarter Operating Highlights:
Frito-Lay North America (FLNA) expanded operating margins through cost discipline and lower commodity costs. In the second quarter, FLNA is making targeted investments in infrastructure and innovation that are expected to accelerate performance in the second half of the year.
PepsiCo Americas Beverages (PAB) successfully completed its bottling transactions and held volume share in carbonated soft drinks (CSDs) in the U.S. as top-line trends improved in the North American beverage business.
Asia, Middle East, Africa (AMEA) posted strong growth in key developing markets such as India and China, where both snacks and beverages posted double-digit volume growth.
Division Operating Summary
PepsiCo Americas Foods (PAF) continued to deliver consistent performance as it overlapped double-digit gains in net revenue and core operating profit in the first quarter of 2009.
FLNA gained volume share, expanded margins and delivered strong core
operating profit growth of 9 percent. Increased margins were
driven by both cost discipline and lower input costs as the
division took minimal pricing in the quarter. FLNA grew net
revenue 1 percent as it overlapped strong growth in the year-ago
period due to pricing actions to offset commodity inflation.
Volume also grew 1 percent, reflecting strong performance in
trademark Lay’s and variety packs, both of which grew volume share
in their respective sub-categories. Outside the snack aisle,
Stacy’s Pita Chips and Sabra dips continued to drive strong growth.
In the quarter, FLNA introduced innovative, better-for-you
snacking options for consumers, including all-natural versions of
Lay’s potato chips and lightly salted versions of Fritos corn chips
and Ruffles potato chips.
Quaker Foods North America (QFNA) volume was down 1 percent, net
revenue was down 3 percent and core operating profit was down 14
percent, driven almost entirely by the overlap of an insurance
Latin America Foods (LAF) volume grew 1 percent and net revenue was
up 8 percent in the first quarter. Core operating profit declined
5 percent as LAF lapped nearly 30 percent core operating profit
growth in the first quarter of last year. LAF is currently making
investments in both value and infrastructure which are expected to
benefit operating results in the second half of this year.
PAB posted a 32 percent increase in net revenue and a 28 percent increase in core operating profit, driven by the favorable impact of the acquisitions, a focus on profitable volume and ongoing productivity enhancements.
North America Beverages maintained volume share leadership in measured channels and showed improved CSD volume trends driven by Pepsi Refresh, Throwback versions of Pepsi and Mountain Dew and our Super Bowl value promotions.
In the hydration segment, SoBe Lifewater continues to perform well, gaining both volume and value share. In the second quarter, Gatorade has begun to roll out its G Series, which provides benefits to athletes before, during and after their sports activities.
PepsiCo Europe net revenue declined 3 percent and core operating profit grew 4 percent, reflecting disciplined financial management and a continued focus on productivity. Performance in Europe reflected a challenging macroeconomic environment across the region, particularly in Eastern Europe.
Europe snacks volume was down 4 percent in the quarter, reflecting poor weather in Western Europe and particularly challenging macroeconomic conditions in Eastern Europe. In the U.K., double-digit growth in the Quaker portfolio of healthy snacks was more than offset by declines at Walkers as they overlapped the successful Do Us a Flavour promotion. In the second quarter, Europe will drive innovation in its healthy snacks portfolio through the expansion of Baked Lays in Western Europe and its nuts platform in Spain and Portugal.
Europe beverage volume declined 4 percent, reflecting category weakness. Europe’s CSD portfolio performed well in key markets, growing value share in Russia, the U.K., Turkey and Germany. In the second quarter, Europe will launch Mountain Dew in the U.K. and deliver differentiated value across brands and countries through price/pack architecture initiatives and a strong promotional calendar.
AMEA drove strong top-line growth across both snacks and beverages, reflecting volume momentum in China and India due to improving demand and strong marketplace execution. AMEA net revenue increased 18 percent and core operating profit grew 12 percent, reflecting strategic investments in China. Acquisitions impacted net revenue growth favorably by 1 percentage point and adversely impacted core operating profit growth by 2 percentage points.
AMEA snacks volume grew 13 percent, reflecting broad-based increases driven by double-digit growth in China and India. In India, Kurkure grew double digits as the division built on the success of this product by launching a new flavor in the quarter. Growth in China reflects powerful market execution of Chinese New Year promotions. Acquisitions contributed almost 3 percentage points to volume growth.
AMEA beverage volume increased 10 percent year over year, including double-digit volume expansion in India and China. AMEA continued to drive locally relevant innovation in the quarter, launching several new products, including blueberry-flavored Guo Bin Fen and expanding distribution of Tropicana Pulp Sacs in China.
PepsiCo’s reported tax rate was a benefit of 2 percent for the first quarter, primarily reflecting the impact of the bottling transactions, which includes the reversal of deferred taxes attributable to the previously held equity interests in the acquired bottlers. This is a change of 27 percentage points compared to the prior year. The resolution of certain tax matters contributed about 1 percentage point to the decline in the reported tax rate compared to the prior-year period. Excluding the impact of items affecting comparability, PepsiCo’s core tax rate was 23 percent for the first quarter. The company expects its full-year reported tax rate to be roughly 23 to 24 percent, which reflects a benefit of about 4 percentage points from items affecting comparability, primarily due to the impact of the bottling transactions, as noted above.
Cash flow from operating activities was $241 million. Management operating cash flow, net of capital expenditures, was a use of $17 million, including a discretionary $600 million contribution to PepsiCo’s pension funds, a $100 million donation to The PepsiCo Foundation, Inc. (the Foundation), $85 million of merger and integration payments associated with our bottling acquisitions, and $26 million related to 2009 restructuring charges. Management operating cash flow, excluding these items, was $794 million.
For the year, the company expects cash flow from operating activities to be about $8.3 billion and management operating cash flow, net of capital expenditures, to be about $4.7 billion, including: the discretionary $600 million contribution to PepsiCo’s pension funds, about $400 million of merger and integration payments associated with our bottling acquisitions, the $100 million donation to the Foundation, $26 million related to 2009 restructuring charges, about $200 million in capital investments related to the bottler integration, and about $350 million of cash tax benefits related to these items. Management operating cash flow, excluding these items, is expected to be approximately $5.6 billion. The company expects to invest about $3.6 billion in net capital spending in 2010.
For fiscal 2010, the company is targeting an 11 to 13 percent growth rate for core constant currency EPS off of its fiscal 2009 core EPS of $3.71, with about 6 percent growth in core constant currency EPS in the first half of the year, which includes a charge of approximately $40 million related to the Patient Protection and Affordable Care Act (PPACA) – which was signed into law in the second quarter of 2010 — and mid-teens core constant currency EPS growth in the second half of the year. Based on current spot rates, foreign exchange translation would represent a one percentage point unfavorable impact on the company’s full-year, core constant currency EPS.
The company is targeting pre-tax annualized synergies from the
bottling acquisitions of approximately $400 million once fully
implemented by 2012, and now expects one-time costs of
approximately $650 million to achieve these synergies. Of the
approximate $650 million in costs, roughly $225 million is non-
cash and represents the impact of the consolidation and
rationalization of certain manufacturing assets. Synergies to be
realized in 2010 are expected to total approximately $125-$150
In the first quarter, the company repurchased $940 million in common
stock (of which $205 million was paid in the second quarter), or 14
million shares. The company anticipates that share repurchases
will total approximately $4.4 billion in 2010.
Impact of Venezuelan Devaluation
As of the beginning of the company’s 2010 fiscal year, Venezuela is
accounted for under hyperinflationary accounting rules, and the
functional currency of our Venezuelan entities has changed from the
Bolivar to the U.S. dollar. Effective January 11, 2010, the
Venezuelan government devalued the Bolivar by resetting the
official exchange rate from 2.15 Bolivars per dollar to 4.3 Bolivar
per dollar, with certain activities permitted to access an exchange
rate of 2.6 Bolivars per dollar.
In 2010, the company expects that the majority of its Venezuelan
foreign exchange transactions will be remeasured at the 4.3
exchange rate. As a result of the change to hyperinflationary
accounting and the devaluation of the Bolivar, the company recorded
a one-time net charge in the first quarter of 2010 of $120
March 30, 2010
PUNE, INDIA – PepsiCo India has installed a biogas plant at its Frito-Lay manufacturing unit at Pune. The company is now directly using this gas for the production of its snack product Kurkure. The company commissioned the plant in June last year and is now running at full daily capacity.
Rajeev Kumar, VP, Operations, PepsiCo India said, “The plant produces enough biogas for two processing lines. We have stopped using LPG on those two lines, where we produce Kurkure, out of the seven lines. The plant produces 2200 million cubic meters of gas a day, substitute 200 tonnes of LPG annually.”
It also reduces our carbon emissions by 600 tons annually, Mr Kumar said. The Pune plant is the first one across Frito-Lay’s global operations to use biogas, according to The Economic Times. The Pune manufacturing unit produces the entire range of Frito-Lay’s snacking products Lays, Kurkure, Cheetos, Uncle Chips and the recently launched biscuit brand Aliva.
The unit also generates 10-12 tons of bio-degradable waste daily, comprising potato peels, extra burnt chips, green potatoes, etc, which was earlier disposed off as waste and will now be used in the biogas plant. Installed at an investment of Rs 3.5 crore, the plant will save the company its annual expenditure of Rs 1.5 crore on waste disposal.
Src: TheBioenergySite News Desk
February 23, 2010
Kurkure, the popular snack, has launched a brand new namkeen snack inspired by the popular cuisine of Punjab. The new ‘Funjabi Kadhai Masala’ has ingredients that this fun loving community enjoys. Funjabi Kadhai Masala is made with Rajma and embellished with the aroma of cinnamon, clove, black cardamom and hint of tangy tomato. As Deepika Warrier, Marketing Director, Frito Lay India puts it, “As an established leader in the Indian snack market Kurkure has always been known to surprise and delight its consumers with innovative and great tasting offerings. The new flavour is inspired by the food culture and the dildaar fun spirit of Punjab. Rajma is considered a popular, special occasion, “family together” food in this part of India and so we decided to develop a snack that not only carries this taste of popular rajma but is actually contains rajma.”