Potato Chips / Tortilla Chips / Industry News

PepsiCo adds 35% marketing push to Snacks Division

March 2, 2012
/ Print / Reprints /
ShareMore
/ Text Size+

PepsiCo says it will boost advertising and marketing of its North American snack business this year by 35%, and invest in the rapidly growing value category, with products such as Cracker Jack line extensions, say executives. The company also says it pledged to double down on its "Power of One" effort to market snacks and beverages together, a strategy analysts have disliked earlier.

PepsiCo has focused heavily on its snacks business after rolling out plans to revive its beverage division. PepsiCo also says it will increase company-wide marketing by up to $600 million in 2012, focusing on a dozen key brands.

While its beverage business trails behind Coca-Cola, the company's snacks business is thriving by most accounts. Lines such as Lay's, Doritos and Cheetos, help dominate the global savory-snacks category. In 2010, PepsiCo had sales of $29.9 billion, far ahead of Kraft at $5.3 billion. PepsiCo's snack revenue grew 9% and volume was up 4% last year, the company reported. Snacks most likely will overtake its beverages by 2016, growing to 52% of overall revenue from 48%, the company reports.

Frito-Lay will also make moves in the premium- and value-snacking segments. Says Tom Greco, president of Frito-Lay North America, "There's rapid growth in both the premium and value segments within macro snacks."

Source: www.adage.com

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 Bakery of the Year: Capistrano's Wholesale Bakery, Phoenix AZ

Here’s a look at Capistrano’s Bakery, our 2014 Bakery of the Year.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

Snack Food & Wholesale Bakery Magazine

Cover Image

2014 September

September's Snack Food & Wholesale Bakery publication features on defining whole -grain foods, as well as a special feature on the 2014 Bakery of the Year: Capistrano's Wholesale Bakery!

Table Of Contents Subscribe

National Pizza Month

October is National Pizza Month! Where do you go to grab a slice (or two) of your favorite pie?
View Results Poll Archive

THE SNACK AND BAKERY STORE

organic-production-&-food-q.gif
Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!

STAY CONNECTED

Facebook IconTwitter IconYoutube IconLinkedIn Icon