Beverage Special: Shanghai center an innovative milestone for beverage giant

US beverage giant PepsiCo Inc opened an innovation center in Shanghai on Tuesday to reinforce its expansion in Asia.

The state-of-the-art facility, PepsiCo's largest research and development center outside North America, will serve as a hub of new products, packaging and equipment innovation for PepsiCo's businesses throughout Asia.

The facility is equipped with an advanced culinary center and test kitchens focused on developing and tailoring PepsiCo food and beverage brands for distinct, locally relevant taste preferences in the region.

In addition, the facility will house a pilot manufacturing plant to allow researchers to quickly test new product ideas.

"Innovation has always fueled PepsiCo's growth engine and enabled us to build a portfolio of great-tasting, convenient food and beverage brands that are loved by consumers around the globe," said Saad Abdul-Latif, CEO of PepsiCo Asia, Middle East and Africa.

"The Shanghai facility is a game-changer for our business that we expect will fast forward our innovation throughout the entire region."

The facility is another step forward for PepsiCo, another executive said.

"PepsiCo continues to build global research and development capabilities that are differentiating our brands in the marketplace and driving attractive new growth opportunities," said Mehmood Khan, executive vice-president and chief scientific officer of PepsiCo.

"This center will play an important role in our global R&D network by bringing cutting-edge technology and innovation to our businesses in China and throughout the Asia-Pacific region and partnering with other PepsiCo locations to achieve new breakthroughs in other parts of the world."

The opening ceremony was also attended by Chinese officials such as Huang Feng, a deputy division head of the Ministry of Commerce, and Dai Hua, deputy chief of Shanghai's Minhang district.

"PepsiCo is one of the world's most successful food and beverage companies, and we're proud that they continue to grow and invest in China," Dai said.

Emerging markets

China and the Asia-Pacific region are key components of PepsiCo's overall plan to drive growth in emerging and developing markets globally. PepsiCo nearly tripled its business in emerging and developing markets from $8 billion in annual net revenue in 2006 to $22 billion in 2011.

The opening of the R&D center and pilot manufacturing plant in Shanghai is the latest step PepsiCo has taken to strengthen its business in Asia.

Other measures taken by PepsiCo this year include:

Completed a strategic beverage alliance with Tingyi to create the No 1 liquid refreshment beverage system in China;

Opened beverage manufacturing plants in Kunming and Zhengzhou. The Tingyi-PepsiCo beverage system now has more than 70 manufacturing plants across China.

zhuanti@chinadaily.com.cn

(China Daily 11/15/2012 page16)