PepsiCo’s food CEO discusses bringing Smith’s to a new aisle

Walk through almost any Australian supermarket and PepsiCo is hard to miss, from the shelves to the brands shoppers have known for years. In Australia, its foods business spans brands including Smith’s, Red Rock Deli and Doritos, backed by three manufacturing sites, more than 1700 employees and an annual spend of about $150 million on locally grown produce.For Alexia Horley, CEO of PepsiCo’s Australia and New Zealand foods business, one of the central challenges is keeping familiar brands commercially pertinent as snacking habits, retail expectations and routes to market evolve.Inside FMCG spoke with Horley about “how, when, why and even where” customers are snacking, supplier relationships and product innovation, as well as what she has learned about leading a large organisation – listening, making room for different perspectives and giving people the confidence to speak up and challenge ideas.Inside FMCG: PepsiCo sits across some of the most recognisable snack brands in Australia. How are you thinking about growth in a market where consumers are constantly balancing indulgence, health and value simultaneously?Alexia Horley: We are always conscious of offering choice across our portfolio and we’re fortunate to have a portfolio of brands that enables us to offer something for everyone. I think one of the biggest changes we’ve seen recently is in relation to snacking habits – how, when, why and even where they are snacking.Our growth strategy focuses on expanding occasions and leveraging the strength of our iconic brands while introducing them into formats that meet today’s needs for value, quality, what’s better for you or convenience. Launches like Smith’s Crackers and our new canister formats are good examples. They tap into different moments, while staying true to the taste credentials people expect from us.Our strategy centres on meeting consumer demands wherever consumption occurs, both in and out of home. This means reaching consumers through more physical and digital touchpoints to ensure we evolve and remain relevant, today and in the future.IFMCG: It seems retailers are demanding more from suppliers than ever, from data-driven category insights to supply reliability. How has PepsiCo’s relationship with retail partners evolved in recent years?AH: Our success depends on strong, transparent relationships with retailers and a shared focus on the consumer. In recent years, we’ve felt external pressures like supply-chain disruption and extreme weather events.That has meant deeper data sharing, category insights and a stronger joint focus on end-to-end efficiency all the way from the farm to our customers’ shelves, so we can reinvest in innovation and value for shoppers.When we align on putting the consumer at the centre, we create wins for shoppers, retailers and suppliers.IFMCG: Innovation in snacks often looks incremental on the shelf but requires significant operational change behind the scenes. What does successful product innovation look like inside PepsiCo today?AH: Successful product innovation starts with a clear consumer need. What might look simple on shelf often represents significant change behind the scenes, from new manufacturing capabilities to different supply-chain and packaging requirements.For us, success means innovation that broadens reach, unlocks new occasions and drives category growth in response to demand. We also have to balance that innovation with maintaining the heritage and nostalgia of legacy brands that Aussies love. Smith’s Crackers is a great example of one of our most iconic and loved brands entering a new aisle for the first time, proving how even a 95-year-old brand can evolve to meet consumer demand.We’ve also changed how we work internally, challenging ourselves to enable teams to move with greater speed and agility, test ideas more quickly and respond faster to emerging consumer trends. Our launch of ‘minis’ into canisters is another great example of what’s possible when you pair iconic brands with a more agile operating model.IFMCG: You’ve worked across several markets in the Apac region during your career. How has that international experience shaped the way you approach leadership in Australia and New Zealand?AH: Working across various Apac markets has taught me that there’s no one-size-fits-all answer, especially when you factor in different consumers, culture and leadership. What does translate though, is the importance of staying curious and listening to learn.That strategy has helped shape my approach to leadership here in Australia and New Zealand by reinforcing how critical it is to trust the expertise on the ground while maintaining a clear strategic direction.It has also reinforced the value of resilience and agility. Markets across the Apac region often operate in highly dynamic environments, and that mindset of unlocking pace to execute with speed while staying grounded in long-term strategy has been incredibly valuable here.I am also a firm believer in the power of positivity. I work alongside an amazing team and 100 per cent believe in what’s possible because I believe in them as individuals and in how we come together as a team to develop and execute our plans and collectively navigate the inevitable challenges that we’ll face.IFMCG: PepsiCo operates at an enormous scale. At the same time, the FMCG landscape is moving faster than ever. How do you keep a large organisation agile enough to respond to changing consumer behaviour?AH: We’ve been deliberate about simplifying decision-making and unlocking speed to respond to shifts in consumer behaviour without losing the benefits of scale, which can be an advantage if you’re intentional about how you use it.To do this more intentionally, we established a future-focused team with an agile way of working. We empower them to move quickly and test ideas that may either succeed or fail fast. Learn from this to bring relevant offers to market sooner.At the same time, we continue to invest in our local manufacturing footprint, committing to building capacity and future-proofing growth. By aligning our teams around clear growth priorities and consumer-led opportunities, we can execute faster while staying informed.IFMCG: You’ve been with PepsiCo for nearly two decades and recently stepped into the CEO role. What leadership lessons have stayed with you over that journey?AH: Over the years, I’ve learned the importance of listening, creating space for diverse perspectives, and empowering teams to speak up and challenge ideas. This is most effective when you can constructively mine for conflict to enrich and strengthen ideas.Critical to the success of this is creating an environment of high trust and strong psychological safety within the team.I’ve also learned that credibility comes from consistency – doing what you say you will do – especially during tougher periods. Whether it’s navigating macroeconomic pressure, investing in local manufacturing, or supporting our frontline teams, long-term trust is built through consistent actions rather than words.Finally, staying close to the consumer has been a constant. The markets, channels and challenges may change and certainly will evolve over time, but if you keep consumers at the centre of your strategy and lead with clarity, you’re far better positioned to make the right decisions – for the business and for your people.Originally published in the October edition of Inside FMCG.