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PepsiCo sees Saudi Arabia and Gulf nations as some of its fastest-growing markets, as rapid social transformation, a young population, and expanding leisure options open new channels for its products.
“What I’m seeing is a region that is going through a transformation that people who don’t come here can hardly comprehend,” said Eugene Willemsen, CEO of PepsiCo’s international beverages business. “It provides a lot of opportunities for many different industries, including consumer packaged goods.”
With governments pushing healthier lifestyles — including initiatives in Saudi Arabia linked to Vision 2030 and expected taxes on sugary drinks — PepsiCo is expanding its zero- and low-sugar beverage lines, Willemsen said in an interview in Riyadh. The company continues to offer its “indulgent” full-sugar options but is seeing greater demand for lower-calorie drinks.
Gatorade, the sports drink, is growing quickly in the Gulf, driven in part by PepsiCo’s expanding sports partnerships — including tie-ups with the UEFA Champions League and Formula One. The sports marketing aims to tap into a younger, more online fan base, Willemsen said. The company is also partnering with Six Flags in Riyadh and other entertainment providers that didn’t exist just a few years ago.
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PepsiCo is experimenting with new flavors suited to regional tastes and is conducting research at a new facility in Riyadh. While it hasn’t launched a local flavor yet, the company recently rolled out a new 7UP (alcohol-free) Mojito, which Willemsen said “caters well” to local consumers. (This reporter has tried it: It is, subjectively, delicious.)
Beyond the Gulf, PepsiCo is in the early stages of re-entering the market in Syria, which emerged from a 13-year civil war in December, Willemsen said. Gulf countries are leading efforts to shape Syria’s economy, and global firms based in the region are slowly trickling in as most sanctions are lifted on the war-torn country.