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Indra Nooyi: The Former PepsiCo CEO that Inspired Healthy Change Within and Beyond the Company

  • Writer: Ingrid Guo
    Ingrid Guo
  • Apr 10, 2021
  • 4 min read

Author: Yee Xin Cher '22


PepsiCo is currently one of the biggest food and beverage companies in the world, responsible for providing many famous food brands, such as Lays, Quaker Oats, Mountain Dew and Gatorade, to over 200 countries. Previously, PepsiCo was only producing unhealthy snacks and drinks, but once Indra Nooyi joined the company’s senior management, she spearheaded an effort to diversify PepsiCo’s portfolio with more nutritional products, and fostered a healthier and more creative company environment. Nooyi defied all doubts of her ability to sustain the business as its market share was decreasing, and proved with her compassion and determination that she could leave a long lasting legacy at the company.


She grew up in Madras (Chennai), in a well-to-do, conservative Brahmin family that heavily emphasized the importance of learning and education. After earning a bachelor’s degree in chemistry and a master’s in business administration in India, she came to the United States in 1978 to earn her second masters at the Yale School of Management. Nooyi’s experience in New Haven was eye-opening for her; at the time the school did not have any support systems for international students, so she had to figure everything out on her own. Over time, all the international students banded together in their common struggle and she ultimately had a good experience.


After graduating from Yale, Nooyi started her career as a consultant at the Boston Consulting Group (BCG) for six years, then worked at Motorola, then at Asea Brown Boveri (ABB). In 1994, she landed in PepsiCo as their chief strategist. The CEO at the time, Wayne Calloway, had called her and convinced her that she was needed at PepsiCo, as they did not have anyone with her ethnicity or international outlook who was female in senior management at PepsiCo. He saw that she could make a big difference at the company. At the time, she saw that the marketplace was evolving, as soda consumption had been declining in the U.S. for more than a decade, articles promoting health and wellness were picking up speed, and consumption of low-calorie products were increasing. Nooyi knew that in order for PepsiCo to survive, the company, best known for its sugary soft drinks and savory snack foods, needed to expand its product lineup to include more-nutritious offerings. She saw this as both a business and social imperative.


In 2000, PepsiCo bought Quaker Oats, and started developing healthier alternatives to their current products such as Diet Pepsi and Pepsi Max. She became CEO in 2006, as the Great Recession was happening, and though she did rein in spending, she did not cut back on her restructuring and diversification efforts. Nooyi saw her job as not to tell consumers what to eat or drink, but to provide a range of choices: between fun for you, better-for-you and good-for-you products. She ensured that all PepsiCo products were ubiquitously available, reasonably priced and all taste great, so that the decision is ultimately up to the consumer. Many investors were critical of Nooyi’s shift toward a more health-oriented overall product line, but throughout her twelve years as CEO, she proved them wrong. By the time she stepped down in 2018, she had increased the company’s top-line revenues and created a more sustainable product portfolio for PepsiCo, positioning it well for years to come.


But what I find most admirable about her time at PepsiCo was her commitment to creating a welcoming company culture that encouraged health and wellness among its employees too. When she first became CEO, she held a series of town hall meetings to get to know the people that worked in PepsiCo, and really got to understand their goals in work and life. Nooyi realized that the shift to more healthy products also benefited her employees, as they could go to work everyday knowing that they were promoting healthy and sustainable habits. She wanted to ensure that PepsiCo was a company that cultivated talent and create a positive culture and work environment. Nooyi also paved the way for PepsiCo to become a global leader in the areas of environmental stewardship. She launched a variety of sustainability initiatives: embracing recycling, redesigning packaging to reduce waste, conserving water, and using more renewable energy sources. Nowadays, Nooyi is engaged in different projects: she’s working on her book “My Life in Full: Work, Family and Our Future”, co-chairing the Connecticut Economic Resource Center, and chairing for the Class of 1951 Study of Leadership at West Point. What is evident among all her activities is her passion to do what is right, exceed expectations, and help others succeed.


As an Asian female myself, I admire how she has not let her critics stop her from climbing to the top and push for positive change in a giant company. The stereotype that is usually pushed on us Asian women expects us to be submissive and merely a background supporting role. However, Nooyi’s leadership has proven that with grit and determination, women are equally capable of building long-lasting successes. In an interview, Nooyi described how she woke up every morning with a healthy fear that the world is changing, and a conviction that, to win, you have to be more agile than anyone else. Nooyi’s outstanding leadership and positive initiatives deserve much praise, and she continues to be a great role model for young Asian women entering the corporate world.


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