Prepared Foods January 24, 2005 enewsletter

PepsiCo announced the introduction of the Smart Spot symbol in Canada, which is designed to help consumers identify more than 100 of the company's food and beverage products that contribute to healthier lifestyles. Originally introduced in the U.S. in July 2004, the Smart Spot logo is rolling out nationally in Canada on PepsiCo brands including Tropicana, Gatorade, Baked! Lay's, Quaker and Diet Pepsi.

"PepsiCo is committed to improving product choices and encouraging healthier lifestyles," said Brock Leach, senior vice president, new growth platforms and chief innovation officer. "Consumers have told us they want simple, clear and positive information to help them identify and select food and beverage choices that contribute to healthier lifestyles, and the Smart Spot does just that."

PepsiCo developed the Smart Spot criteria based on authoritative statements from the National Academy of Sciences, which provides guidance on food and beverage choices in North America, as well as standards from the U.S. Food and Drug Administration. With heightened consumer awareness and new Canadian nutrition labeling standards, PepsiCo worked with Canadian nutrition experts to adapt Smart Spot criteria for use there.

The Smart Spot criteria include limits on the amount of fat -- including saturated and trans fats -- cholesterol, sodium and added sugar. The Smart Spot symbol identifies many products that are fortified and contain other wholesome ingredients. The criteria also serve to identify products reduced in fat, calories or sugar, or products formulated to have specific health or wellness benefits.

"PepsiCo's Smart Spot symbol is an easy way to communicate which food and beverage selections contribute to healthier lifestyles," said Tom BenDe, president, Pepsi-QTG Canada. "The Smart Spot will be featured on an estimated five billion servings of our products across Canada this year alone."

Consumers can easily spot the bright green Smart Spot symbol -- which says "Smart Selections Made Easy" -- in the front, lower-right corner of packaging. The back of all Smart Spot product packaging will direct consumers to for full information on why the product earned the Smart Spot designation.

"Our company is committed to offering a spectrum of products that include Smart Spot choices as well as fun-for-you products, and to encourage healthier, active lifestyles," added Marc Guay, president, Frito Lay Canada. "We know consumers want help achieving energy balance -- matching calories consumed with calories burned."

In addition to offering more product choices, PepsiCo is promoting healthier lifestyles through its sponsorship of the Balance First program, a national schools initiative originally developed by America on the Move that has been adapted for Canada by a team of Canadian education and nutrition experts. Balance First is fully endorsed by the Canadian Association for Health, Physical Education, Recreation and Dance (CAHPERD). The program will educate children on the importance of balancing calories consumed with calories used -- engaging kids in ways to become more active and eat more healthfully. CAHPERD will distribute the Balance First program starting in February 2005 -- reaching more than 300,000 elementary school students across the country.