PepsiCo’s Mohamed Shelbaya on F&B innovation, partnerships, youth and AI
PepsiCo’s CEO of Beverages – MEA discusses the strategic logic behind the Mercedes-AMG F1 partnership and the company’s focus on catering to MENA’s youth-driven market through innovation, localisation and AI integration
07 January, 2026
TT
16
The global consumer landscape is undergoing a rapid, digital-first transformation, driven by an engaged and environmentally conscious youth population.
Nowhere is this shift more pronounced than in the Middle East and Africa (MEA), a region defined by its immense demographic dividend, with over 65 per cent of the population under 30, and its accelerated embrace of technology and local pride.
To capture this dynamic market, multinational giants must evolve beyond traditional strategies, focusing on rapid innovation, health and wellness, and deep community integration.
This strategic evolution is perfectly encapsulated by PepsiCo’s recent landmark multi-brand partnership with the Mercedes-AMG PETRONAS Formula 1 (F1) Team starting in 2026.
This alliance, which uniquely positions Gatorade, Sting performance drink, and Doritos together, is a direct response to F1’s explosive, youth-led growth.
As highlighted by a special activation during the 2025 season-ending Abu Dhabi Grand Prix, the partnership is designed to tap into F1’s dramatically expanding audience, which is now approximately 40 per cent Gen Z and Gen Alpha and features a rapidly growing base of young women.
Here, Mohamed Shelbaya, PepsiCo’s CEO of Beverages – MEA, delves into the thinking behind these pivotal moves, detailing how PepsiCo is aligning its business, from R&D to digital marketing, to meet the sophisticated needs of this influential new generation across the MEA region.
What is the strategy behind the new F1 partnership with the Mercedes-AMG PETRONAS F1 Team, and what are the commercial goals?
The decision to partner with the Mercedes-AMG team, which builds on our existing relationship with F1 1, is driven by the massive transformation in the sport, particularly its appeal to younger generations.
Formula 1 now has a viewership of 1.3 billion followers, with 40 per cent being Gen Zs and Gen Alphas, and around 45 per cent being females aged 15 to 24. We aim to tap into this young, engaged audience by associating PepsiCo brands with the excitement and news generated by an F1 team.
The partnership is a three-pronged approach: positioning Gatorade as a sports rehydration solution, where we are partnering with Mercedes’ team through our Gatorade Sports Lab to find hydration solutions for the drivers to give them a performance edge; using Sting, our energy drink aimed at Gen Zs, to energise the crowd and focus on digital platforms for behind-the-scenes content; and leveraging Doritos, whose bold flavour profile aligns well with the bold theme of the sport.
We are looking forward to many activations, digital content, and sports performance hydration solutions, and we even had a surprise activation specifically for the F1 in Abu Dhabi on Sunday, December 7, 2025.
How does PepsiCo view the Middle East and Africa region, and what are the key trends driving your strategy there?
The Middle East and Africa region is strategically critical for us because it has the youngest population globally, with over 65 per cent of the population under 30.
This demographic is tech-savvy, cares deeply about the environment, and constantly seeks innovation.
Key trends driving our strategy include the acceleration of digital speed, which means the wear-out factor for traditional marketing is incredibly fast due to social media, forcing us to constantly innovate and adapt our marketing programmes by moving from traditional celebrity endorsements to influencers and focusing on CSR and environmental initiatives.
Furthermore, the pace of innovation is increasing, demanding that we stay on our toes and innovate much quicker, as market shifts now happen every two to three years.
Finally, localisation is key. We are opening a research and development hub in Riyadh to serve the region.
How do you balance consumer demand for healthier, low-sugar options with the traditional full-sugar portfolio?
Our simple rule is to listen to the consumers, and we don’t try to sell what they aren’t asking for. The trend for healthier options and no-sugar drinks is loud, especially among the younger generation, but there is also a segment, particularly in hot markets like Africa, that still seeks full-sugar options as a cheap source of energy.
The company’s approach is to offer a full portfolio, allowing consumers to choose among low-sugar, no-sugar, and hydrating options such as Gatorade, or full-sugar options like the Sting performance drink. The key complexity comes in the back-office management, which is where we are investing in AI to help us manage a large portfolio.
AI helps us analyse customer data to understand specific outlet needs. For example, a university shop might require a higher index of no-sugar options, allowing us to manage production, go-to-market strategies, and allocate shelf space accordingly.
What is PepsiCo’s commitment to the community and sustainability in the region?
We view our role as going beyond selling; we are here to serve the communities we live in. Our focus areas are on the youth, helping them fulfil their dreams through entrepreneurship and sports; on farmers and sustainable agriculture, which is a big priority given we are an agriculture company, where we support farmers on sustainable practices to conserve water and soil, helping them improve productivity and earn a decent living; and on the environment.
We have serious commitments to reducing our environmental footprint, including water conservation through recycling every drop of water consumed in our plants, aiming to recycle our entire plastic portfolio, and actively seeking ways to reduce the carbon footprint of our plants, trucks, and coolers.
What can readers look forward to in 2026, beyond the F1 partnership?
Consumers are primarily looking for two big things: value and innovation. In terms of value, we are driving productivity within our manufacturing and go-to-market strategies to offset rising commodity prices and ensure we offer the right product at affordable prices.
For innovation, consumers want to see new products, and we are focusing on launching internationally popular products with a local twist, such as the recent launch of Pepsi Cherry in the UAE.
We also plan many new, fresh collaborations, like our successful venture this year with Noon, where they manufactured a 7-Up ice cream, which helps make the brand young, fresh, and very local.
What is the philosophy that has helped PepsiCo build an enduring legacy?
The key to an enduring legacy is being consumer-centric and having the vision to transform, even if it goes against current operations, drawing a lesson from companies that failed because they had the data but refused to adapt.
We are undergoing a major shift in mindset, viewing our portfolio as food and drinks, not just carbonated soft drinks and snacks.
We are also heavily investing in AI to drive productivity and harness data, which is key in this day and age, to totally reshape the business, as data analysis is what will shape our business.
Underlining all of this is our people, who bring the passion, drive, and competitiveness needed to succeed.
What is your personal philosophy for strong leadership?
I am a firm believer that winning as a team is the right way to go. My philosophy is based on building a great team where departments gel together for the greater cause, focusing selflessly on the big picture rather than individual objectives, operating with the belief that “We’re all in this together. We’re in one boat”.
I invest time in the right people, specifically recruiting individuals who are better than I am and can challenge me.
Furthermore, I ensure there is an environment of openness and safety by having an open-door policy to listen to ideas from everyone, regardless of seniority, because when you achieve the finish line with this collaborative approach, the sense of achievement for the whole team is much more profound.




















