Pepsi Implements Local Sourcing and Hedging to Mitigate Geopolitical and Cost Pressures

Stock News03-23

Pepsi's Chief Executive for the Asia-Pacific region, Anne Tse, has stated that the company is alleviating geopolitical and cost pressures through 95% local sourcing of raw materials and the use of hedging strategies. She noted that the company has implemented hedging measures for a range of commodities. Additionally, Pepsi maintains close collaboration with local growers, particularly potato farmers, which has enabled the company to demonstrate "strong resilience" when tracing its upstream supply chain.

At the China Development Forum held in Beijing, Anne Tse mentioned in an interview, "We are indeed monitoring the situation very, very closely." Furthermore, Pepsi is focusing on premium and high-nutrition products, reducing sugar and sodium content while incorporating local ingredients to align with Chinese dietary traditions.

In January of this year, Pepsi announced a multi-year collaboration with Siemens and NVIDIA to leverage advanced technologies, including artificial intelligence (AI), to transform its factory and supply chain operations. At the time, the company stated that it plans to use Siemens' so-called "digital twin" technology to simulate and optimize facilities before implementing physical upgrades.

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