High protein cheetos? Doritos with added fibers?
Pepsico plans to offer healthier, or cleaner versions of some of its popular snacks and beverages, adding protein or fiber, which are increasingly sought by consumers, said company executives to analysts and investors in results teleconference on Thursday (17).
“Protein is clearly a subsegment in the food and beverage category that is growing rapidly,” said Ramon Laguarta, CEO of Pepsico. “Consumers are adopting protein solutions on their diet at a pace that was not the case for a few months or years. We are trying to offer consumer solutions. No small solutions, but big solutions with some of our big brands.”
The company did not give details about which snacks or drinks could receive additional protein or fibers, but indicated that they would probably appear first in some quaker drinks and snacks. He reported that he is relaunching two of his big brands, lay’s and toasty, without artificial dyes or flavors by the end of this year.
PepsiCo also plans to launch a line of cheetos and Doritos without dyes or artificial flavors in the future, the company said. He highlighted the global success he has obtained with his glues and other sugar -free drinks.
The largest focus on healthier or more functional snacks and drinks occurs at a time when consumers are increasingly seeking these types of products and Trump management pressures companies to abandon artificial dyes and adopt more natural ingredients.
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On Wednesday (16) at night, President Donald Trump posted on social networks that Coca-Cola had agreed to use royal sugarcane sugar on their drinks sold in the United States. Coca-Cola, which currently sweetens its drinks in the US mainly with high fructose corn syrup, has not confirmed if it has accepted the change.
Pepsico, like other packed goods companies, also continues to see consumers buy less their traditional products.
Pepsico’s revenue grew 1% over the previous year, reaching US $ 22.7 billion in the quarter ended June 14, the company said. Net profit dropped 59%to $ 1.26 billion, mainly due to a low accounting in assets, including the value of Rockstar Energy Drink, purchased in 2020.
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Globally, the demand for their snacks and drinks fell 2%.
In the midday trading session, Pepsico shares rose 6.8%, quoted at US $ 144.55.
In response to the drop in volumes, the company said it fired some employees and closed two factories. To improve profitability, he said he seeks more ways to reduce expenses, cutting travel costs and even contracts with third parties. “We are attacking everything,” said Jamie Caulfield, chief financial officer, to analysts.
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Pepsico executives said they hope to attract more consumers highlighting simpler or cleaner product lines, or adding functional attributes such as hydration, protein or fiber. Laguarta said the company has received a good response from consumers of the Simply Snacks line. One package of Simply Lay’s potatoes contains three ingredients – potatoes, oil and salt – he said.
Still, some analysts questioned consumers’ demand for healthier options. An analyst said the company already has healthy brands such as SUNCHIPS and POPCORNERS, which together generate about $ 2 billion a year in revenue. This is little compared to $ 24.7 billion in sales that the company’s fritty-lay business business, which includes brands such as Doritos, Cheetos and Lay’s, generated last year.
Pepsico said consumers also seek help in controlling portions, and this is where their smaller packages of snacks or multipacks enter. “The minor food business will continue to grow,” said Laguarta. “I think it’s a great way for our brands to participate in a healthy diet.”
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