Published on Sat, Jul 04, 2009 at 14:45 | Source : CNBC-TV18
Updated at Sat, Jul 04, 2009 at 16:01
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Pepsico's product range now stronger: Indra Nooyi
Nooyi now says that the market for pepsico's product range has gotten stronger with households across the world cutting back on spending on luxuries like eating out. She's betting big on growth from the Asian markets and was in China to inaugurate a plant there.
Bartiromo: While everybody talks about China and India, Japan is sort of off of the headlines and here you are making this stake in Calbee. How much growth do you see coming out of Japan?
Nooyi: It's interesting. I think Japan, which has been sort of in an L-shaped curve for a long time with the GDP growth sort of flat and negative for many years, may be is slowly coming out of that slump. And we're beginning to see the top of our green shoots. We're beginning to see it in Japan. I think the last three months Japan's GDP has actually recorded positive numbers. I think in the last month it was over 5 percent. So, Japan's actually looking positive. But more importantly, Calbee is an outstanding snack company in Japan. You know, we have been partners with Calbee in terms of they've visited us many times over the last 10 years. We've been talking with them to see whether the two companies could do something for the past decade or so. The time was right, both companies were comfortable. Japanese don't do something overnight. They take a while to build a relationship. I think they reached a point they were comfortable with PepsiCo, we decided to put our businesses together. I think what's exciting about the Calbee deal is it's not just that it's a partnership for Japan. The Japanese industry has got great packaging innovation, product innovation, and the whole idea is to learn from our Japanese partners to enhance and enrich the rest of our businesses globally.
