By Eduardo A. Hapke/ Miami.
Antonio Escalona, a three-year-veteran at PepsiCo, serves as senior vice president of the Hispanic Business Unit of PepsiCo Foods North America. PepsiCo’s CEO, Ramon Laguarta, also is Hispanic.
With a population that now tops 60 million, Latinos are a growing force in the United States. Their rising numbers and drive for success have helped U.S. Hispanics become the world’s fifth-largest economy, if they were counted as a separate country. PepsiCo’s CEO Ramon Laguarta, who hails from Spain, recognizes that increasing strength and the power of diversity.
In a recent report, Laguarta highlighted PepsiCo’s efforts to promote diversity, equity and inclusion. He said PepsiCo is committing more than $570 million over five years to increase African-American and U.S. Hispanic representation, support businesses owned by African-Americans and U.S. Hispanics, and create economic opportunities in those communities.
Results of those efforts have been positive so far. PepsiCo’s Supplier Diversity Program has invested more than $250 million in programs for U.S. Hispanic suppliers; its “When you grow, the community grows” program has assisted 500-plus Hispanic-owned businesses; and the share of Hispanics in management is nearing the company’s 10 percent goal, Laguarta said.
PepsiCo offers dozens of brands in food and beverage, including Quaker, Pepsi, Lay’s, Cheetos, Doritos, Fritos, Gatorade, Aquafina and Sabritas. Its annual revenues reached nearly $80 billion worldwide in 2021.
Hispanic Time talked with Antonio Escalona, senior vice president of the Hispanic Business Unit of PepsiCo Foods North America, a PepsiCo veteran for more than 27 years. He’s lived and worked across the Americas and understands the evolution of the Hispanic market, both in Latin America and the United States. He’s seen how U.S. Hispanics have influenced buying patterns in other U.S. communities, where tortilla chips are now commonplace in non-Hispanic households.
“Over the next 30 years, Hispanics will make up more than 80 percent of the net growth of the US workforce”, says Antonio Escalona.
Hispanic Time: You’ve had a long career at PepsiCo. How have you seen tastes evolve for people in Latin America and the United States?
Antonio Escalona: I came to the U.S. for the first time more than 27 years ago with PepsiCo. Before that, I worked in Venezuela, where I’m from. I’ve also lived in England, worked in the Asia-Pacific region, and lived in Peru and Mexico before recently moving to Dallas. I’ve had the chance to see the evolution of Hispanics in the U.S. and Latin America.
When I arrived in the U.S. in the mid-90s, we Hispanics were less than 10 percent of the U.S. population. Now, we’re 60 million people and almost 20 percent of the total. Back in the early ‘90s, about 90 percent of Hispanics lived in 10 states. In the last 10-year Census, 41 of the 50 states showed at least 25 percent growth in their Hispanic population. What really impresses me and makes me especially proud is that in the ‘90s, less than 50 percent of Hispanics had a high school diploma, and today, 75 percent have one.
And that sorts of sums up the development of U.S. Latinos – on one hand, rising numbers and cultural impact in the US, and on the other, greater self-confidence. All this has made us more assertive and helped boost our confidence. It also has influenced the tastes of the food PepsiCo sells – for example, we’ve seen faster growth in products with intense tastes like spicy or tart, not only because of Latino consumers but also, because the rest of the U.S. population is buying them too. It’s impressive to see how Latin tastes are influencing the U.S. population in general, no matter their ethnicity and origin.
HT: Is Hispanic influence gaining importance in the company and in new product launches?
AE: Of course. In fact, that’s why we created the Hispanic Business Unit, which I have had the honor and privilege to lead since 2020 – in order to focus on the U.S. Hispanic market. We recognize the importance of the Hispanic consumer in the future growth of the U.S. market. Projections show Hispanics will represent more than 50 percent of U.S. population growth over the next decade or so. And I’ve seen data that shows over the next 30 years, Hispanics will make up more than 80 percent of the net growth of the U.S. workforce, that is, subtracting those people who retire because of age. We Latinos already rank as the fifth largest economy in the world, [if we were counted as a separate country].
PepsiCo recognizes the importance of U.S. Hispanics, not only as consumers but for how they influence the consumption of others. In literally every meeting we have with U.S. clients, there’s discussion about the Hispanic market. My team provides insights, data, information, ideas for innovation and development plans, so that our retailers or partners also can grow their businesses while satisfying the tastes and needs of Latinos who want products that make them feel more comfortable.
HT: We’re 20 percent of the population, but there are many areas where Hispanics are under-served. What is PepsiCo doing in that regard?
AE: You’re right. There’s still lots of opportunity. But I would say, we choose to see the glass as half-full. We see opportunity, work to fill gaps and are moving along well in the right direction. Two years ago, our CEO Ramon Laguarta launched an initiative for racial equality, and for Hispanics, set goals and started programs in three important areas: people, business and communities. During Hispanic Heritage Month this year, we released a progress report. We have a goal by 2025 for 10 percent of managers to be Hispanic and to add at least 50 Hispanics to our boards. As of the second quarter of 2022, we were already at 9.6 percent Hispanics in management, up 1 percentage point from a year earlier.
I’m confident we’re going to exceed the 10 percent goal. And I predict, without discussing this with Ramon who always “raises the bar,” that we’ll set a higher goal later. We’ve also added 31 Hispanics on boards, and I’m sure we’ll exceed that goal too by 2025.
For Hispanics to represent 20 percent of PepsiCo management, proportional to our share of the U.S. population, we really need to focus on three areas: recruiting, retaining and developing talent. That’s why we’re keen on a new program to nurture young talent – someone not yet ready for top leadership but who we can start preparing to become an executive. In 2020, we launched a six-month program in executive development for Hispanics and African-Americans, and 68 managers and assistant managers have completed it so far. That sends a clear message to Hispanic talent that we’re interested in their continued development.
HT: There’s a trend toward healthier products. How does the company focus on that for the general market?
AE: As a company, we are leaders in food and beverage. We look at all the trends and try to satisfy and anticipate consumer needs. We’ve developed portfolios that aim to meet different needs, including some with healthier products. Our Quaker unit, for example, is a leader in oatmeal and cereal. We also have customers looking for items that are both fun and healthy, which is hard to achieve. So, we either try to develop those products or acquire them to provide those customer experiences.
“We at PepsiCo are committed to U.S. Hispanic development through varied programs. For example, we plan to invest at least $250 million a year with Hispanic suppliers. We help small and medium-sized businesses with grants, and we’ve provided grants to some 150 food and beverage companies in the Hispanic market in 13 cities” says Escalona.
HT: Do you see a promising future for U.S. Hispanics? Will the Hispanic market become increasingly important for PepsiCo?
AE: Without a doubt. Look at the projections I mentioned about growth in the Hispanic population, education levels, buying power and greater access to opportunities. We at PepsiCo are committed to U.S. Hispanic development through varied programs. For example, we plan to invest at least $250 million a year with Hispanic suppliers. We help small and medium-sized businesses with grants, and we’ve provided grants to some 150 food and beverage companies in the Hispanic market in 13 cities. Plus, we’ve helped more than 500 Hispanic businesses with training in such essential areas as marketing and safety, mostly during the pandemic.
We’ve also created the “Hispanic Digital and Delivery Program”, which basically lets small businesses, like a restaurant or retail store, operate in the e-commerce world. That program has helped more than 75 Hispanic-owned shops enter the tech wave.
PepsiCo Juntos Crecemos (Together We Grow), is a multi-faceted platform that aims to support restaurants, bodegas and carnicerías (meat markets) across the U.S. The Juntos Crecemos platform is part of our $50 million, five-year commitment to support Hispanic-owned businesses.
Reporting and version in Spanish: Santiago Ávila
Translation to English version: Doreen Hemlock
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