1. PepsiCo’s Top Food Processing Research Challenges
Austin Kozman, Ph.D., P.E.
Director – Open Innovation & Alliance Management
April 30, 2015

2. PepsiCo Category Research
Agenda
PepsiCo Category Research
Food Processing WANTS

3. Who We Are? Global Beverages Global Snacks Global Nutrition
PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient, nutritious and affordable options in nearly every country around the world.
Global Beverages
Global Snacks
Global Nutrition
Performance
Brands
Scale
People
With over $66 billion in net revenue and more than 250,000 employees, we are among the largest food-and-beverage companies in the world.
PepsiCo is the #1 Food and Beverage company in North America
In Europe, we are #1 in juice, dairy, ready-to-drink tea, and savory snacks
In Russia, we are the largest food and beverage business in the country and the market leader in dairy
Our foods and beverages are consumed nearly 1 billion times each day nearly every country around the world.
PepsiCo is made up of three global businesses – beverages, snacks and nutrition.
Twenty-two of the brands in our portfolio – including Pepsi-Cola, Quaker Oats, Tropicana, Lay’s and Gatorade – generate more than $1 billion each in retail sales every year.
More than $66 billion revenue
22 billion-dollar brands
>200 countries & territories
More than 250,000 employees

4. R&D Operating Model Breakthrough Reframe Refresh Discovery R&D Teams
Transformational
Science
Discovery R&D Teams
Breakthrough
Functional R&D Teams
Reframe
New propositions
(unique-to-market platforms)
Business
Impact
(Return)
New propositions
(PEP-familiar platforms)
Refresh
Line extensions
Region R&D Teams
Business Complexity

5. Category Discovery R&D Teams
Food & Beverage
Ingredients
Process
Package
Long Term Research
(LTR)
PepsiCo Advanced Research
(PAR)

6. PepsiCo Category Research
Agenda
PepsiCo Category Research
Food Processing WANTS

7. Focus on BIG Ideas
focus primarily on the ideas that scored highest (top right quadrant for high challenge and high reward from group consensus in platform meetings)

8. Group Ideas into Opportunity Spaces
Better Built:
Built for Appearance
Built for Texture
Built for Taste & Flavor
Built for Form
Transform Distribution:
Point of Sale
At Home Applications
Flexible Equipment
Localization
Holistic Sourcing:
Managing Inputs (Ingredients)
Repurpose and Reuse
Robust Process
Digital Efficiencies:
Information Value Chain
Operational Execution

9. Top WANTS
New/unique dehydration technologies to food manufacturing (other than baking, frying, etc.)
New Food Industry Manufacturing Processes (e.g. Injection Molding of Food)
Waste to Worth (Value for Current Agricultural Waste Products: orange peels, oat hulls, corn bran, coconut husks, potato peels, potato starch, etc.)
Advantaged and Differentiated Grain Milling
Noninvasive potato defect and content characterization
Minimally Processed Fruits & Vegetables (high moisture, i.e. > 20%, shelf stable snacks that make consumption of whole fruits and vegetables more palatable and fun)
Chemical/Enzymatic Modification for Advantaged Food Products (e.g. a product that when chewed releases heat, enzymes to modify starch so finished product has a harder texture, etc.)
Non-Oil Frying (alternative food grade fluid that has a flash point > 450 to 500°F)
Edible adhesives that are activated with a low energy source or temperature
“Simulated Mouth” - Quantitative tool to characterize texture of products
Edible Moisture Barrier

10. Next Steps – Defining Unarticulated Needs
Unarticulated Needs (WANTS)

11. Internal PepsiCo Capabilities
Food Science
Culinary
Sensory
Clinical Science
Packaging
Metabolomics
Engineering
Food Safety, Quality
Chemistry/Physics
Regulatory
Statistics
Agro
Biology
Nutrition
Flavors

12. Questions? Austin Kozman austin.kozman@pepsico.com 972-334-4338