PepsiCo Inc. to focus on value, healthier products amid slump snack prices
USA – PepsiCo , an American multinational food, snack, and beverage corporation, has announced that it will focus more on catering to consumers looking for value and boosting its better-for-you options to stoke growth in its snacks business.
PepsiCo highlighted efforts to increase sales of healthier snacks like Simply, which has no artificial colors or flavors, and high-protein items such as Quaker.
The recent acquisitions of Siete and Sabra also increased its presence in better-for-you foods while building its exposure in meals.
PepsiCo’s CEO Ramon Laguarta told analysts, “Value is the number one decision maker, and the reason why the snacking category has slowed during the last year. PepsiCo will offer additional multi-count packages in smaller counts with lower price points that consumers can purchase depending on their budgets.”
According to the company, Frito-Lay and Quaker foods businesses are experiencing a decline in volumes as consumers snack less and cut back on their spending. However, executives remain upbeat that conditions are improving.
“We’re very confident that our North America business will accelerate this year,” he said. “We’re very confident in our plans and our long-term. And we see opportunities, especially away from home.” The CEO added.
Laguarta downplayed the need to lower prices across its portfolio to attract consumers. Instead, PepsiCo plans to use a “surgical price pack and execution strategies to drive snack growth.
The food and beverage giant’s revenue during the fourth quarter was US$27.8 billion, down slightly from US$27.9 billion a year earlier.
Revenue climbed roughly US$400 million to US$91.9 billion during PepsiCo’s 2024 fiscal year, with net income rising to US$9.6 billion from US$9.1 billion in the prior year.
PepsiCo acquires Siete.
The announced its decision to acquire Garza Food Ventures LLC, the parent company of Siete Foods, for US$1.2 billion.
This acquisition aims to enhance PepsiCo’s snack portfolio by integrating an authentic Mexican-American brand known for its grain-free tortilla chips and other heritage-inspired products.
The deal highlights a growing trend in the food industry as consumers increasingly seek healthier and more inclusive food options.
Founded in 2014 by Veronica Garza and her family, Siete Foods quickly became a staple in American households. It offers various products, including tortillas, salsas, seasonings, and cookies.
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