PepsiCo seeking to underline health drive as part of Dubai Expo 2020 partnership

PepsiCo is striving to boost its standing as a manufacturer of more healthy food and beverages in the Middle East after becoming the official beverage and snack partner of Expo 2020 in Dubai.

PepsiCo will use the platform to showcase its latest nutrition-driven initiatives, which is in line with Expo 2020’s themes of Sustainability, Opportunity and Mobility.

Some of PepsiCo’s showcase include ‘helloGoodness’, which is an umbrella of better-for-you snacks ranging from Sabra hummus to Simply Cheetos Puffs.

Expo 2020 Dubai is committed to showcasing products and innovations that promote intelligent sources of nutrition “allowing people to live healthier, more prosperous and sustainable lives,” said His Highness Sheikh Ahmed bin Saeed Al Maktoum at the signing ceremony.

The partnership with Expo 2020 is part of PepsiCo’s wider efforts to establish itself as provider of healthier food and beverage, especially in the Middle East where there is rising obesity.

According to a 2016 study from the World Journal of Diabetes, the Middle Eastern and North African region has the second highest rate of increases in diabetes in the world and the number of people with diabetes is projected to increase by 96.2% by 2035. 

Last year, Saudi Arabia became the first Gulf country to introduce a sin tax, which covers a 100% tax on energy drinks and cigarettes, and a 50% levy on carbonated drinks.

As a result, the price of a 250ml can of Code Red energy drink rose to SAR 4 (US$1.07) from SAR 2, while Red Bull increased to between SAR 10 and SAR12.

The levy was part of a raft of tax regime changes across the Gulf, including the 5% VAT rate across Gulf Cooperation Council countries.

Besides implementing a sin tax, health warnings were also printed on energy drink cans in Arabic and English.

PepsiCo’s move to healthier food

In 2016, PepsiCo pledged to reduce the amount of sugar and sodium in its products by year 2025. It sought the guidelines of World Health Organization and other organizations.

Goals include making at least two-thirds of its global beverage portfolio to have 100 calories or fewer from added sugars per 12-oz serving; at least three-quarters of its global foods portfolio to not exceed 1.1 g of saturated fat per 100 calories; and at least three-quarters of its global foods portfolio to not exceed 1.3 mg of sodium per calorie.

Last year, the company signed an agreement with Partnership for a Healthier America (PHA) to independently verify, report, and share its progress towards achieving the goals.

Other areas of partnership

Besides healthy eating, PepsiCo and Expo 2020 will also promote water stewardship, sustainable packaging, agriculture and nutrition.

Expo 2020 is the first World Expo to be held in its 167-year history in the Middle East, Africa and South Asia (MEASA) region.

Some 25 million visits are expected at Expo 2020, including 70 per cent from outside the UAE.