RIYADH: PepsiCo regards Saudi Arabia as a “strategic” market with growing opportunities for investment and innovation, as the Kingdom continues to be a key target for the company.
The company says it has aligned closely with the Kingdom’s long-term goals, building on a presence that spans nearly seven decades.
“We’ve been operating in the Kingdom for almost 70 years now,” Eugene Willemsen, CEO of international beverages at PepsiCo told Arab News. “We immediately embraced Vision 2030 when it was launched and made it very clear that we wanted to be part of it, but also actively contribute to it.”
He pointed to several areas where PepsiCo has expanded its role, including increasing the inclusion of Saudi and female talent, evolving its product portfolio, and supporting initiatives that promote more active lifestyles.
“We see ourselves as a contributor to Vision 2030 … and we look forward to continuing to do so with all the different businesses that we have here in Saudi Arabia,” he said.
CEO of International Beverages at PepsiCo, Eugene Williamson, in Riyadh. Supplied
Saudi Arabia is one of PepsiCo’s most important markets globally, supported by strong local capabilities and long-standing partnerships.
“This is a market that for PepsiCo is a very important market. It’s a strategic market for us,” Willemsen said. “We have very strong and advanced capabilities in marketing, commercial areas and supply chain that we can leverage across our broader network internationally.”
He also highlighted the role of local bottling partners, describing relationships that “go back many decades” and bring “phenomenal capabilities” that benefit the wider PepsiCo system.
The company employs about 9,000 people across its operations in Saudi Arabia and has continued to expand its local footprint. Recent investments include a new research and development facility in Riyadh’s King Abdullah Financial District, developed in collaboration with its snacks business.
“This is an investment of about SR30 million ($8 million),” Willemsen said, adding that the facility is designed to develop products tailored to local needs and potentially incorporate local crops, with applications extending to the broader Middle East.
Shifting consumer preferences are also influencing PepsiCo’s beverage strategy in the Kingdom, particularly as demand grows for healthier options.
“We’ve put a lot of focus on zero sugar offerings here in Saudi Arabia, and we’ve seen a significant shift towards zero sugar,” he said. “Consumers across different age groups and demographics are looking for options that provide them with lower sugar intake.”
At the same time, hydration is a key focus, particularly given the Kingdom’s climate. Willemsen pointed to opportunities to expand products that include electrolytes for both active consumers and everyday use.
PepsiCo is also increasing its use of artificial intelligence in its operations, from agriculture to product development.
“We want to be one of the leaders in adopting AI in the consumer goods space,” Willemsen said. “AI enables you to test and qualify concepts in a much faster way, develop products faster, and bring those products faster to the market.”
He said AI is being used in the company’s global agricultural operations to help farmers optimize water use, fertilizer application and crop yields.
On supply chains, Willemsen said the company is focused on building local resilience amid ongoing global volatility.
“What we aim to do across the world … is to create as local a supply chain as possible,” he said. “We’ve built a lot of resilience and agility within our supply chain to cope with different scenarios.”
Despite global uncertainty, he expressed confidence in the Saudi market’s long-term outlook.
“The Saudi market is, in and of itself, a very resilient market,” he said. “Because it’s evolving so rapidly, it continues to provide opportunities … to innovate and cater for the evolving needs of consumers.”
He added: “There’s a lot of built-in resilience here in Saudi Arabia that gives us the confidence that this is a country that will continue to grow and prosper.”
