DUBAI: The soft drinks and snacks manufacturer PepsiCo is set to open its new regional headquarters in Riyadh this month as part of its expansion, Ahmed ElSheikh, President and General Manager of PepsiCo MENAPAK Foods, told Arab News on Monday.
“We are opening a new office at King Abdullah Financial District, which is going to be the key head office,” ElSheikh said.
PepsiCo is also investing in a research and development facility in KAFD, he added, describing Riyadh as “the hub of the Middle East” with an ever-growing market.
The president said PepsiCo had made investments of up to $2.5 billion in the last 10 years. Recently, $55 million was invested to expand their capabilities.
“So, this is about investment: investment in offices, investment in R&D, and investment in capacity,” he said.
“We’re bullish about the growth in the Middle East.”
PepsiCo currently has two manufacturing plants in the Kingdom: one in Damam and one in Riyadh, which exports to the rest of the Gulf Cooperation Council. Together with its franchise partners, with close to 9,000 employees – almost a third of them women – in the Kingdom, Saudization efforts exceed 40 percent in some business units.
When asked how rapid market changes are affecting the brand, ElSheikh said PepsiCo adapts to trends quickly.
“Health and wellness and fitness is a new trend, especially for Gen Z,” he said, referencing products such as Forno (baked potato) chips and Gatorade, which are growing in popularity among the demographic.
“The reason behind this is sports. People are very active,” he explained.
Each demographic has different needs, with Generation Z seeking healthier and more convenient products, said ElSheikh.
“Gen Z are looking for not just healthier products but also looking for on-the-go consumption versus at-home consumption,” he added.
