Pepsi maker bullish on domestic market

MANILA, Philippines —  Global beverage company PepsiCo is looking to expand its presence in the Philippines with new product launches and investments in local manufacturing as it banks on the country’s young consumer base and growing demand for functional and affordable beverages.

Aditya Sheoran, PepsiCo general manager for beverages in the Philippines, Malaysia and Singapore, said the company is seeing double-digit growth in its local business as it continues to evolve its portfolio to serve changing consumer preferences with a stronger focus on wellness, accessibility and sustainability.

“We are constantly looking at how to improve our portfolio and serve our consumers better. The Philippines is one of our biggest markets in Southeast Asia, and we are fully committed to growing here,” Sheoran said in an interview with The STAR last week.

Among its latest launches are Pepsi Zero Sugar Lime, Mountain Dew Zero Sugar and Gatorade powder, a first-of-its-kind format in Asia that allows consumers to “rip, mix and drink” for hydration at a more accessible price point.

“The powder format is a great way to democratize our brands. It helps us reach more consumers at a lower price point while promoting hydration and active lifestyles,” Sheoran said, adding that the no-sugar variant of the Gatorade powder is already available locally with more variants in the pipeline.

He said the company has a strong growth outlook this year for the Philippine market, which remains one of PepsiCo’s most important territories in the region and currently ranks around third in size.

“The beverage category has been growing mid-single digits in the last few years, but we’re aiming to grow faster than the market,” he said.

“We are either number one or number two across most beverage segments, cola, energy, flavored drinks and sports drinks,” added the company executive.

To sustain this growth, Sheoran said PepsiCo is continuing to invest in its local operations and supply chain.

He said most of their beverages sold in the Philippines are already produced locally through its bottling partner, which operates more than a dozen manufacturing facilities nationwide.

“Bulk of our products are manufactured in the Philippines. We are constantly evaluating our network to improve efficiency, upgrade our facilities and expand our footprint when needed,” Sheoran said.

The company also plans to roll out smaller and more affordable packaging options to make its products more accessible to rural consumers while continuing to push multi-serve formats like two-liter bottles for families.

“We are seeing strong trends in convenience, digital engagement and functional hydration. The demand for energy drinks and electrolyte beverages is rising, especially in a hot and active market like the Philippines,” he added.

PepsiCo is also ramping up its sustainability initiatives under its global pep+ (PepsiCo Positive) program.

This includes collecting plastic waste under the Extended Producer Responsibility (EPR) law, reducing plastic thickness through light weighting and sourcing renewable energy for its facilities.

“Sustainability is at the core of our business. We don’t see it as an added cost but as an opportunity to build stronger affinity with consumers,” Sheoran said.

He noted that while cost pressures from raw materials remain a challenge for the industry, PepsiCo is mitigating these through operational efficiencies, local sourcing and supply chain optimization.

“We’re looking at every part of the system to build efficiencies, from local partnerships to network improvements,” he said.

“Our business has been in the Philippines for over seven decades, and we remain optimistic about its long-term potential,” the PepsiCo official added.