As new entrants disrupt the cola market, legacy players are pulling out all the stops to stay ahead. PepsiCo is doubling down on innovation, price competitiveness and cultural connect to stay ahead. In this interview, Nitin Bhandari, VP & General Manager – Beverages, PepsiCo India & South Asia, speaks to Geetika Srivastava about how the company is building resonance with brands like Sting, Mountain Dew and Pepsi. Edited excerpts:
Q. Pepsi says India remains a pivotal market for global growth. What are the steps you have taken lately to tackle competition and improve reach?
India is a key anchor market for PepsiCo. Our focus remains firmly on leading with purpose, deep consumer understanding, and executional excellence, to increase penetration by driving relevance and accessibility of our portfolio. Our strength lies in a portfolio that resonates with India’s evolving tastes, backed by a future-ready distribution network that reaches from metros to the most remote rural markets.
We are doubling down on our distinctive brands—Pepsi, 7UP, Mountain Dew, and Sting, while expanding our zero sugar innovations like Pepsi Black, 7UP Zero and Gatorade Zero. We have an occasion-based price pack architecture approach that focuses on offering value to consumers across different occasions and constantly innovating in the market with products that consumers see as value for money.
Our go-to-market strategy is built for agility and reach. We are present in over four million outlets and plan to increase this by 10-15% every year. With strong momentum across general trade, modern retail, e-commerce, and quick commerce, our brands are available when and where the consumer needs them—urban or rural, on-the-go or at home. Our commitment is to deliver insight-led, culturally relevant innovations that deepen consumer love and drive sustainable growth.
Q. How does the entry of Campa change the rules of the cola game?
While competition in the industry continues to evolve, we believe that there is room for multiple players to thrive. Any new entrants will only result in increased market penetration, bringing in new consumers therefore expanding the size of the market. We view the competitive landscape as a catalyst- driving us to lead with consumer centricity, innovation, and purpose-led execution across every touchpoint.
Q. A slowdown in urban consumption along with inflationary pressures are hurting many consumer product companies. What are your plans to ride out the trend?
We see periods of economic moderation as opportunities to adapt, innovate, and emerge stronger. While the consumer landscape is evolving, our commitment to staying closely connected to consumer needs remains unwavering.
Our strategy is centred on delivering everyday value while accelerating premiumisation. Our portfolio caters to the diverse preferences of consumers, tapping into emerging occasions, functional benefits, and culturally resonant formats. Demand for our brands remains resilient, especially in categories where PepsiCo has a strong play.
Q. Sting recently partnered with Formula 1. What kind of growth opportunities are you seeing in this segment in India? And do you believe energy drinks can evolve into a mass-market category, beyond niche urban consumption?
Sting’s partnership with Formula 1 marks a bold step in positioning the brand at the intersection of high energy and global culture. As interest in Formula 1 grows in India—especially among younger, digital-first audiences—this collaboration places Sting at the forefront of a high-impact platform that resonates with its core consumer base and signals the brand’s ambition to scale cultural relevance through global associations.
This momentum builds on Sting’s strong value proposition: an accessible price point, a bold flavour profile, and versatility across multiple consumption occasions. The brand has steadily deepened its cultural relevance through partnerships such as gaming integration with BGMI, and now motorsport—supported by celebrity-led campaigns, regional creators, and tailored digital activations—helping Sting remain top-of-mind across both urban metros and smaller towns in India.
We’ve already seen this with Sting’s category leadership; it commands a leading share of India’s energy drink market and continues to democratise the category across the country. Energy drinks are no longer confined to niche urban pockets; they’re becoming mainstream choices for India’s always-on, ambition-fuelled consumers across both urban and rural markets. This is just the beginning.
Q. Can you share insights into how new manufacturing facilities will enhance PepsiCo’s supply chain efficiency and support market expansion in India, especially in tier-II and III cities?
As one of the anchor markets for PepsiCo, India is a strategic growth driver for our global beverages’ portfolio. We announced an investment of Rs 1,266 crore in 2024 to set up our second in-country flavour manufacturing facility in Ujjain, Madhya Pradesh. The plant will localise beverage flavour production under our ‘In India, for India’ vision, improve supply chain agility, reduce import dependency, and support the ‘Make in India’ initiative. Beyond operational efficiency, the facility will drive local employment, support regional industries, and set new benchmarks in sustainability through advanced water management technologies.
This investment is further complemented by the strong execution capabilities, deep distribution network and expansion plans of our bottling partners, which play a critical role in making our beverages accessible across the country.
Q. With a growing segment of health-conscious consumers, how is PepsiCo India innovating its beverage offerings to align with this trend, and what has been the consumer response so far?
We offer our consumers a portfolio ranging from zero sugar to mid-cal to indulgent choices. Our Zero Sugar (ZS) portfolio—which includes Pepsi Black, 7UP Zero Sugar, and Gatorade Zero, while the low-calorie range includes Mirinda and Sting.
Products like Pepsi Black and Gatorade Zero continue to build momentum online, particularly through quick commerce. This focus on functional, great-tasting options is helping us reshape the category with more balanced choices. The consumer response—especially in metro and emerging urban markets—reflects a good interest in these offerings.
More than 44% of our portfolio consists of low calorie to zero sugar products, as per VBL (Varun Beverages) CY2024 data.
Q. PepsiCo has consistently launched high-decibel campaigns in India, especially around IPL and summer seasons. How is your advertising strategy evolving to reach younger, digital-first consumers across platforms and how do you measure ROI across traditional and digital media?
Our advertising strategy is evolving with the consumer. Today’s youth are digital-first, culture-driven, and expect brands to show up in ways that feel native, bold, and engaging. That’s why our campaigns are no longer just seasonal, they’re culturally timed, and insight led. We began the year with impact—Mountain Dew’s latest campaign featuring the powerhouse duo Salman Khan and Hrithik Roshan, underscoring the brand’s core narrative, ‘Darr Ke Aage Jeet Hai,’ cast as a celebration of courage and camaraderie. It resonated deeply with audiences while staying true to its legacy.
Pepsi’s ‘Anytime is Pepsi Time’ campaign redefined the idea of refreshment, extending Pepsi’s relevance beyond summer to occasions like cricket, festivals, and everyday youth hangouts. Meanwhile, Sting’s global tie-up with Formula 1 brought high-energy storytelling to life—blending adrenaline with aspiration to carve a powerful cultural space for the brand, amplified by Bollywood powerhouse Ranveer Singh. We’re also building for moments, not just media slots. For instance, 7UP’s Spotify-powered ‘SpiceIt’ Playlist campaign connected flavour with music, sparking regional conversations.
Our digital-first storytelling allows us to meet consumers in the moment—whether it’s e-comm, Q-comm, or in-app experiences like Spotify, BGMI, etc. We closely track ROI across both traditional and digital channels using a mix of media efficiency, engagement metrics, and real-time sales lifts. It’s not just about visibility anymore, it’s about impact, agility, and relevance.
Q. Can you share how your current pricing strategy and recent campaigns are helping you succeed in the market and deliver value to your customers?
Our pricing strategy is sharply insight-led—designed to deliver aspiration and accessibility across diverse consumer segments. A strong example is Sting, which has redefined the energy drink category by making high-octane refreshment widely accessible. With aggressive pricing and expansive availability, Sting has become both a volume and value leader in India’s energy drink market. It’s a category that was once considered niche, and we’ve helped bring it into the mainstream. With the launch of Sting Gold – Night Fuel, we have unlocked new occasions for consumption and driven strong penetration without compromising on brand equity.
At the same time, our campaigns continue to deliver high-impact consumer engagement. Whether it’s Sting’s partnership with Formula 1, Mountain Dew’s bold narratives or Pepsi’s Anytime is Pepsi Time campaign, our brands are creating culturally resonant moments that go beyond advertising. This powerful combination of thoughtful pricing and memorable storytelling is helping us stay relevant, drive value, and win in a dynamic market.
Q. With India’s diverse taste preferences, how is PepsiCo approaching product innovation and localisation in the beverage segment to cater to regional demands? How do you plan to take on emerging players?
India is a diverse market with varying palates, lifestyles, and consumption drivers. They give us a powerful lens to innovate with intent. Our R&D and marketing teams are deeply tuned into regional nuances—whether it’s creating globally inspired formats with local twists or addressing functional needs like hydration, energy, and refreshment. Backed by robust infrastructure, and a sharp omnichannel strategy, we’re not just keeping pace—we’re shaping the market.
With an innovation-first approach, we are expanding occasion-led offerings. We’re embedding brands into youth culture through music, festivals, and gaming, and leveraging quick commerce. Our campaigns leverage consumer insights with creativity; some of the most talked about campaigns this summer have been the 7UP x Spotify SpiceItUp Playlist, Sting x BGMI gaming integration, Anytime is Pepsi Time and Mountain Dew iconic ambassador duo.