Pepsi Highlights Healthy Brands

Purchase, NY -- For consumers interested in leading healthier lives, PepsiCo launched its "Smart Spot" program in mid-February. It helps shoppers identify products that provide nutritional and health benefits. The retail promotion, which involves more than 100 PepsiCo brands, will roll out continually to major retailers in the grocery, mass, drug and convenience store channels during the first half of 2005. The company chose such flagship brands as Diet Pepsi, Aquafina, Baked Lay's, Tropicana, Quaker, Gatorade and Dole as Smart Spot products because they meet nutritional criteria based on Food and Drug Administration and National Academy of Sciences guidelines, including limits on the amount of saturated and trans fats, cholesterol, sodium and added sugar they contain. The program also identifies products that are inherently nutritious."This is really the place where there's an intersection between growing the business and doing the right thing by consumers," says Kristina Mangelsdorf, director of marketing, wellness and global media for Pepsi-Cola North America."Our research shows that consumers would like to lead a healthier lifestyle, but they're confused by all the information that's out there. To make it simple, we devised the Smart Spot program. It is a short cut for consumers to say, 'If it carries the Smart Spot, I know that in some way it contributes toward a healthier lifestyle.' "Smart Spot products are identified by a distinctive logo -- a green circle featuring a check mark and the words "Smart choices made easy." Green was chosen because consumers associate the color with freshness, while the check mark indicates that the product qualifies as a healthy choice. The symbol began appearing on packages in June 2004 and is being rolled out across hundreds of SKUs. P-O-P plays a central role in promoting Smart Spot. "The primary place where consumers are learning about it and making the decision to buy is at retail," says Mangelsdorf. While the size, amount of product and brands included in each P-O-P display vary by the footprint available in each store, PepsiCo is specifying certain "must-do" brands to include and aiming for a consistent look and feel across all channels.Generally, the company envisions displays that will involve several pallets of beverage products -- including diet soft drinks, bottled water and sports drinks -- set up next to shippers and temporary merchandising displays of snack and grocery products. PepsiCo's field staff assembles all displays. "Because of the many divisions involved, we all go to market a little bit differently," says Bernie Tuttle, customer marketing manager for PepsiCo. "The execution plan is that [each brand] will all have some type of P-O-P depending on how we go to market." While PepsiCo wants to place a large Smart Spot display as close to the store entrance as possible to grab consumers' attention, it is also spreading materials throughout the store. For example, shelf talkers are being used in the chilled aisle to promote Tropicana juices. The Smart Spot initiative also is backed by a national print advertising campaign and a media partnership with Discovery Communications involving sponsorship of its various TV programs. A sweepstakes component offers consumers a chance to win a trip to New York for a "Smart Spot experience" with Meredith Viera, one of the hosts of "The View.""A few months ago, I would have said this would be a very tough sell," says Tuttle. "But, I think retailers are seeing the growth in these types of products already and know that consumers are looking for them."PepsiCo plans to hit roughly 16 major chains, including Albertsons and Kroger. It declined to name its P-O-P vendors.

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