The local bottler of Pepsi said a two-year digital transformation program is beginning to improve service, expand reach over a throng of neighborhood retailers more known as sari-sari stores, and support a goal of revenue growth exceeding the Philippines’ expected GDP expansion this year.
Pepsi Cola Products Philippines Inc. president and CEO Phyo Phyu Noe said the turnaround effort started 24 months ago after the firm acknowledged weak service levels and market-share losses in recent years, particularly during the pandemic. Revenue performance over the past five years has been uneven, prompting a major push to digitize market operations and improve distribution.
A key focus of the program is mapping and tracking customers digitally. Executives said the company has now digitized its regional markets, allowing it to identify exactly where customers are and how often they are served. The system also provides visibility on prices, promotions, and credit terms extended to retailers through its distribution network.
The initiative places strong emphasis on the country’s vast sari-sari store sector, which company leaders described as its “bread and butter.” The Philippines has an estimated 1.5 million sari-sari stores, many of which were historically underserved.
The company said it is now directly serving about 220,000 of these small neighborhood outlets across the country’s 7,100 islands, working with around 650 exclusive distribution partners. A year ago, it had no visibility on those stores’ servicing frequency or commercial terms.
Phyo credited digitization and closer coordination with distribution partners for improving service levels and expanding reach to traditional retail.
The sari-sari channel grew by about 20 percent last year, he said. Overall, the bottler sold around 1.23 billion liters of beverages in 2025.
The company highlighted the strength of its beverage portfolio, noting that Mountain Dew leads the country’s siesta-time carbonated drink segment, Sting is the company’s top energy drink, and Gatorade remains the leading sports drink. The firm also pointed to the expansion of zero-sugar and healthier options such as Lipton beverages.
Phyo said the Philippines stands out in Asia for strong consumer demand but added that the company has a responsibility to offer both great-tasting beverages and lower-sugar alternatives.
The firm is also increasing capital spending on manufacturing lines, warehouses, logistics, and supply-chain digitization to support its turnaround strategy.
However, Phyo acknowledged rising logistics and raw-material costs as a concern, citing pressures linked to geopolitical tensions affecting shipping routes such as the Strait of Hormuz. Any potential price adjustments would need to be discussed with distribution partners, he said.
Despite these challenges, the company said its goal for the year is clear: grow revenue faster than the Philippine economy while expanding service to more sari-sari stores through its digital distribution network.
