Dive Brief:
- PepsiCo has opened what it has dubbed an "innovation center" in Dubai — the company's first research and development center in the Middle East.
- The center, which contains test labs and a culinary kitchen, will tweak PepsiCo products for local tastes and develop new products for the regional market.
- The move follows PepsiCo's $345 million commitment to expand its partnership with Saudi Arabia's Almarai in Egypt.
Dive Insight:
PepsiCo clearly sees potential in the Middle East. And it's not the only major player to do so. Nestle recently opened a confectionery plant in Egypt, and Kellogg bought a majority stake in a sweets company.
More importantly, PepsiCo has already proven that brand versions created specifically for the Middle East can translate globally. The company plans to expand distribution of its Lay's Forno, a chip marketed at Arabic women, to a wider audience.