The National Association of Convenience Stores (NACS) event serves as a bellwether for consumer packaged goods (CPG) innovation. This year, PepsiCo didn’t just show up—they set the tone, blending flavor innovation, with bold ambitions and an unwavering commitment to people, planet, and their partners. Through my years of helping retail and CPG companies reimagine what’s possible, I’ve seen innovation flourish when it tackles real human needs while addressing global challenges. Seeing what PepsiCo delivered this year at NACS made the hair on my arm stand straight up, sending the signal to me that we are on the cusp of industry transformation.
Starting an innovation team in the CPG space for a national brand and spending plenty of time on the showroom floors in the industry makes me hard to impress. But I have to say, I paid extra close attention to PepsiCo this year as my spidey senses were picking up on their mindfully innovative strategy. I believe major industry transformation is heading our way!
I had the opportunity to catch up with some of the leaders at PepsiCo who are spearheading the company strategy. Bryan Santee, Chief Commercial Officer, PepsiCo Beverages North America and Cara Keating, Chief Customer Officer, PepsiCo Foods North America. Bryan stated, “NACS is a special moment for the PepsiCo team to support our convenience store partners and customers through product innovation and pairings. It’s exciting for us to rally with the industry!”
The conversations with Bryan and Cara are so inspiring and offer a masterclass for any CPG leader eager to stay ahead of the curve. I felt the need to share my top 5 takeaways and three critical questions you should be thinking about for your brands and stores.
1. Flavor Innovation is Table Stakes
PepsiCo’s showcase at NACS proved once again that flavor innovation remains at the heart of their strategy. From the launch of Quaker Protein Breakfast Bars catering to health-conscious consumers, to the bold allure of Gatorade Midnight Black which adds mystique to hydration, and the indulgent decadence of Doritos Golden Sriracha, PepsiCo demonstrated their unmatched ability to cater to diverse tastes and lifestyles.
“We are always looking for new ways to excite and inspire the fans of our iconic brands and attract new ones,” said Bryan Santee. But it’s not just about the flavors of one product. “Through our expansive food and beverage portfolio, we have every occasion covered with complimentary food and beverage pairings to create more smiles with every sip and every bite.”
For CPG companies, introducing fresh, compelling flavors is no longer optional—it’s table stakes. Consumers expect brands to surprise and delight them with each new product release. Failing to meet these expectations risks irrelevance in an industry where trends can shift overnight. And thinking about how multiple products or brands can compliment each other is a way to increase share and affinity for your brands.
PepsiCo recognizes that flavor alone isn’t enough to sustain loyalty. As Cara Keating, Chief Customer Officer, noted, “We’re always seeking new solutions to drive growth for our customers, associates, and consumers, ensuring our innovations and capabilities benefit both people and the planet.” This commitment is embodied in PepsiCo Positive (pep+), a transformative strategy introduced in 2021 that spans production, marketing, and distribution to align operations with sustainability and community impact.
This broader approach is where PepsiCo’s strategy truly shines. By integrating sustainability, community engagement, and advanced analytics into their operations, they are moving beyond flavor to build deeper, more meaningful consumer connections.
For CPG leaders: Flavor innovation remains essential—it’s the gateway to consumer loyalty. But the future lies in pairing bold flavors with purposeful actions. Today’s consumers aren’t just buying snacks and beverages; they’re choosing brands that reflect their values. The companies that thrive will be those that seamlessly deliver both.
Flavor wins mouths, but purpose wins hearts.
2. Positive Impact to the Planet
At the core of PepsiCo’s NACS presence was its ambitious “PepsiCo Positive” (pep+) strategy, which Cara described as “embedded in everything we do, from transforming how we grow our ingredients, how we make, move, sell, and package our products, and how we inspire people through our brands.”
A standout example of this commitment is the integration of Oscar Sort—an AI recycling assistant that aids in proper disposal, improving overall recycling accuracy. Powered by advanced technology, Oscar identifies materials, detects organic remnants like food or liquids, and provides step-by-step sorting instructions. Its interactive digital display gamifies recycling, offering real-time feedback while educating users on sustainable habits.
PepsiCo highlighted its partnership with Intuitive AI, the developers behind Oscar, during NACS. The technology is already operational in several PepsiCo office locations and will be deployed in select customer partner locations in the coming months, demonstrating the company’s leadership in sustainability. Showcasing this partnership was a strategic move, underscoring PepsiCo’s role in driving meaningful environmental change within the CPG industry. As consumers increasingly demand brands make a positive impact, Oscar Sort represents a major win for the PepsiCo Positive initiative.
For CPG leaders: The takeaway is clear: sustainability is more than good PR—it’s a growth strategy. Identifying opportunities to reduce waste or cut emissions in your supply chain not only aligns with consumer expectations but can also yield significant cost savings and long-term benefits.
3. Positive Impact Through Community Engagement
Continuing with the PepsiCo Positive strategy at NACS, community impact through initiatives like Cheetos Deja Tu Huella and Taste of Tomorrow resonated with attendees. These programs not only address systemic inequities but also strengthen consumer loyalty by aligning with values that resonate deeply with their audiences.
Cara shared how Cheetos Deja Tu Huella continues the five-year initiative to uplift individuals in Hispanic communities by rewarding their efforts to make a difference. “The brand partnered with J Balvin, an international superstar and entrepreneur, to drive awareness and inspiration for the program,” said Cara. The initiative awards $25,000 to individuals using their talents to create positive change in their communities, amplifying the program’s mission to inspire and empower.
Bryan discussed the Taste of Tomorrow initiative, which tackles underrepresentation in STEM careers among Black professionals, who currently make up just 9% of the STEM workforce. To address this gap, PepsiCo and the PepsiCo Foundation are investing $350,000 in scholarships and resources at nine HBCUs for the 2025 school year. The program also features an R&D educational workshop series designed to provide students with greater access to STEM opportunities.
Taste of Tomorrow highlights PepsiCo’s innovative approach to engagement by using products like Pepsi® Zero Sugar and Doritos® to connect with students through on-campus culinary innovations. In collaboration with in-house chefs and food science experts, the initiative encourages students to explore food innovation at home. This campaign reinforces PepsiCo’s commitment to fostering diverse talent pipelines, addressing systemic barriers, and creating economic opportunities for historically underserved communities.
For CPG leaders: Purpose-driven initiatives that align with your brand’s values can create stronger consumer connections and lasting impact. Identify meaningful causes and partnerships that allow your brand to contribute authentically to the communities you serve.
4. Data for Competitive Edge and Customized Experience
PepsiCo’s proprietary pepviz platform, showcased at NACS, demonstrated the transformative power of advanced data analytics in achieving retail success. Designed to empower convenience store partners, this innovative tool provides hyper-targeted insights into shopper behavior, enabling smarter product placement and optimized assortment strategies. As Bryan explained, “The pepviz setup at NACS demonstrated our understanding of shopper behavior throughout the omnichannel journey.”
The platform’s goal is to “bring clarity and simplicity to the retail space, pinpoint store-level opportunities, and uncover bold, future-focused ways to connect with shoppers.” At NACS, partners explored convenience store zones like the Cold Vault, Center Aisle, and Foodservice area through an interactive display. Each selection generated “relevant insights to support key display placement and assortment recommendations, helping our customers attract shoppers and drive store visits.”
Bryan emphasized the importance of “anticipatory assortment,” explaining how modern assortment strategies must adapt to increasingly complex and interconnected consumer needs. The ultimate vision is to make every product offering feel uniquely curated for each shopper.
PepsiCo’s efforts extend far beyond NACS. In partnership with a national convenience store chain, PepsiCo utilized its Store DNA (sDNA) solution to identify “who the shopper is and what they are buying both inside and outside of the store.” This analysis uncovered four distinct shopper clusters, enabling a customized planogram strategy tailored to their needs. The results were clear: “Clustered stores are growing compared to those that are not clustered, delivering positive results in sales, profit, and market share,” said Bryan.
For leaders in CPG: Data-driven insights are no longer optional—they’re critical to staying competitive. Leverage analytics tools to anticipate consumer needs and refine your strategies. Just as importantly, share these insights with your retail partners to amplify the impact. Whether through advanced platforms like pepviz or simpler methods like surveys, staying ahead in today’s market requires a deep understanding of your audience.
5. Connecting to Cultures & Rising Generations
From Doritos XXTRA Flamin’ Hot to Pepsi Wild Cherry & Cream, PepsiCo’s latest product lines highlight their dedication to bold flavor innovation and cultural relevance. As Cara explains, “Gen Z, the most diverse generation, is becoming a key growth cohort for food and beverage.” Leveraging pepviz data, PepsiCo discovered that Gen Z values brands that align with their beliefs and connect authentically throughout the shopper journey. This diverse generation gravitates toward “bold flavors, unique textures, and nostalgic products,” says Cara.
This year, Mountain Dew marked its 75th anniversary, setting the stage for a “new visual identity launching next summer.” Cara shared that the refreshed branding will embody “the brand’s adventurous spirit and good times with friends.” This strategic move ensures Mountain Dew remains relevant and appealing to the ever-critical Gen Z audience.
For CPG leaders: Stay closely aligned with your audience’s evolving preferences. Consider which of your brands could benefit from a refresh or better connect with cultural moments to engage the next generation of shoppers.
A Blueprint for Bold Innovation
PepsiCo’s NACS showcase is a rallying cry for CPG leaders to rethink how they engage with people, the planet, and their partners. The days of relying solely on great recipes and marketing are long gone. While those elements remain foundational, the sophistication and depth required to meet today’s challenges demand more. PepsiCo’s bold approach—blending sustainability, flavor innovation, data-driven decision-making, and community impact—offers a roadmap for thriving in an era of constant change.
Reflecting on PepsiCo’s presence at NACS and their marketplace initiatives, I found myself inspired—not just by their actions but by the questions they provoke for the industry. Their work aligns closely with insights from my book, The Mindful Innovator, encouraging businesses to adopt purposeful, forward-thinking strategies. For my CPG clients heading into 2025, I’ll pose three critical questions:
- Are you solving real problems for your customers and communities?
- How can you leverage data to better understand and anticipate consumer needs?
- What partnerships or initiatives can you launch to gain instant buy-in and leave a lasting positive impact?
Cara Keating summed it up perfectly: “Our focus is on continuing to be a consumer-centric organization by winning new shoppers and driving loyalty.” PepsiCo’s NACS presence wasn’t just a moment; it marked the beginning of a movement. With exciting innovations, limited-time offers (LTOs), and fresh product pairings on the horizon, as Cara teased, “Stay tuned for more.
By Top Retail Expert: Matt Mueller
Amplify Your Brand’s Voice
