PepsiCo’s snack product portfolio is chock-full of big-name brands like Doritos and Fritos, but the food and beverage company has a number of smaller snack products that fill a valuable niche of hungry consumers looking for healthier meals. They are putting more resources into it.
“There’s an opportunity to really expand these brands a little bit sooner.” Rasheda Boyd, vice president of PepsiCo’s Better Choice Snack Portfolio, told Food Dive. “This has been a top priority for the organization. We definitely have the resources to help build these brands.”
Mr. Boyd is responsible for PepsiCo’s approximately 24 U.S. snack brands, including Sun Chips, AirPop Popcorners, Stacy’s Pita Chips, Bare Baked Fruit and Coconut Snacks, and Off the Eaten Path Vegetable Chips. He oversees about one-third. Together, the eight brands generate approximately $1.5 billion in annual revenue. While it hasn’t yet reached the $1 billion-plus threshold of Doritos and Cheetos, it’s “growing rapidly,” she said.
In the most recent quartersaid PepsiCo. Smaller emerging brands such as PopCorners, SunChips, and Miss Vickie’s each achieved double-digit net revenue growth.
Rasheda Boyd, Vice President, Better Choice Snacks Portfolio, PepsiCo
Licensed by PepsiCo
PepsiCo’s snack business primarily consists of Frito-Lay and Quaker Oats. Generated over $26 billion in combined sales in North America The company’s sales in fiscal 2022 account for just under a third of the consumer goods giant’s $86 billion in global sales.
Certainly, popular products such as Doritos, fritos A more widely available Cheetos would generate a disproportionate amount of funding for PepsiCo’s innovation and marketing, Boyd said. These brands value the taste and texture of their products and cater to people who crave indulgent treats.
But the New York-based company’s smaller brands play an equally valuable role in attracting and retaining consumers within its snack food portfolio.
With these products, PepsiCo offers shoppers a more diverse portfolio of snack brands that can meet broader food consumption needs, such as healthier eating, or cater to specific moments of the day. will be able to provide it.
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PepsiCo found that approximately two-thirds of its Sun Chips brand was consumed with a sandwich or meal. This is the main reason why it is usually served in Subway restaurants, for example. Roldo Gold Pretzels and Lay’s Potato Chips – an alternative to one of PepsiCo’s other brands commonly associated with snacks.
These niche brands also meet the demand for healthier products, such as Off the Eaten Path with vegetables, Bare with fruit, and Sun Chips with whole grains and sometimes black beans.
Frito-Lay is also focusing on promoting Off the Eaten Pass and Bear in places where consumers tend to practice healthier lifestyles, such as health clubs and national parks. A targeted approach usually requires PepsiCo to spend less money on advertising.
“There are probably fewer consumers for these brands, but there is still an opportunity to increase awareness.” Boyd said.
Because of their size, PepsiCo’s smaller brands tend to grow faster than some of the larger brands, giving the snack maker a valuable platform for expansion, said Edward Jones analyst Brittany Quatrochi. He said he is providing it. It also gives FMCG giants more opportunities to reach a diverse range of consumers whose needs and demands closely align with recent popular trends.
“PepsiCo is a great steward of its brand,” Quattrochi said. “They want to expand the reach and presence of their products and capture new opportunities and new customers. One way to do that is by leveraging these emerging brands.”
PepsiCo has been expanding its lineup of better-for-you snacks for years, but in 2021 it’s doubling down on its efforts. Pep+’s sustainability efforts.
The measures included diversifying ingredient formulations and expanding the use of nuts and seeds that are better for consumers and the environment. The move was a response to consumers seeking indulgent and healthier meal combinations and retailers by giving shoppers more of what they’re looking for.
“Consumer needs and snacks are diverse. “Whether it’s a snack that provides a reward or treat, or a snack that is more nutritious and provides a balance of nutrition and taste,” Boyd said. “When you think about meeting consumer needs, you have to have a portfolio that is broad enough to meet these different needs.”
