An iconic cheesy snack brand has ventured into a new category with the introduction of Frito-Lay’s Cheetos Pretzels. One side of these pretzels features a classic pretzel texture, while the other side is coated with Cheetle, the signature cheesy orange seasoning synonymous with the brand. The pretzels come in two flavors: Cheddar and Flamin’ Hot, and are available in both 10-ounce and three-ounce bags.
“Our fans are always looking for creative ways to enjoy the signature cheesy flavor of Cheetos, which is why this new innovation is breaking into an entirely new category,” stated Tina Mahal, the senior vice president of marketing at Frito-Lay. The snacks giant, owned by PepsiCo, based its decision to expand the brand into this new segment on consumer data, revealing that 63% of Cheetos consumers also buy pretzels. Additionally, flavored offerings are responsible for 58% of the growth in the pretzel market, according to Frito-Lay.
Earlier this year, Parth Raval, the chief growth officer for PepsiCo Food North America, announced the company’s intention to introduce Cheetos into the pretzel segment in an interview with Food Dive. He highlighted the success of Cheetos Popcorn, which debuted in 2020, as a key factor. This move is part of PepsiCo’s strategy to grow its $21 billion snacking portfolio. The Cheetos brand, along with Flamin’ Hot, which was launched in 1991, has been a profitable venture for Frito-Lay. The company also released Cheetos Mac ‘n Cheese in 2020 and bite-sized Cheetos Minis puffs last November.
As the snacking industry continues to expand and consumer packaged goods (CPGs) compete for attention, the pretzel category is evolving as new brands capture market share from traditional favorites. Hershey, for instance, has experienced significant growth with its Dot’s HomeStyle Pretzels brand, known for its bold flavors, since acquiring it in 2021 for $1.2 billion.
Meanwhile, Campbell Soup is getting into the holiday spirit a bit early with its Chunky brand. The New Jersey-based company is rolling out a limited-edition soup that gives a delicious preview of holiday flavors. The Campbell’s Chunky Turkey Soup combines classic ingredients associated with the holiday season: smoked turkey, roasted sweet potatoes, green beans, cranberries, and wild rice. This soup is available at retailers like Kroger, Shoprite, Harris Teeter, and Amazon, with a suggested retail price of $2.99.
“Thanksgiving is a time when consumers like to indulge,” said Peter Herron, brand director for Campbell’s Chunky, in an email to Food Dive. “Chunky Turkey Bowl delivers just that. It’s indulgent, craveable, and distinctly Chunky.” Like other branded product manufacturers, Campbell’s soup offerings have faced challenges as budget-conscious consumers shift to less expensive private label brands. In its most recent quarter, Campbell reported a 2% decrease in U.S. soup sales.
While a new Thanksgiving-themed soup is unlikely to single-handedly revive sales in the category for Campbell, it may encourage some shoppers to buy a can just to sample the new offering. It might also lead them to purchase a can of Campbell’s iconic tomato or creamed chicken at the same time. Mark Clouse, Campbell’s CEO, informed analysts in August that the CPG giant has “refined” its soup portfolio to identify “distinct areas for growth.” He added that brands, such as its condensed soups and Chunky, “remain relevant among younger households and continue to show long-term growth potential.”
On another note, even though trick-or-treaters haven’t yet gathered their candy, Goldfish is already ahead of the game with the launch of its limited-edition Elf Maple Syrup Grahams. Inspired by one of Buddy the Elf’s main food groups, maple syrup, these grahams feature flavors of sweet brown sugar and butter, complemented by hints of caramel and vanilla. Although the holiday classic was released two decades ago, the 2003 film remains one of the most beloved Christmas movies, grossing $225 million worldwide, according to CNBC.
Will Ferrell, portraying Buddy, references his four main food groups in a memorable scene where he drizzles maple syrup over spaghetti and sprinkles crushed candy canes on top. Among these groups are candy, candy canes, candy corn, and, of course, syrup. Back in 2019, Campbell Soup unveiled a strategy to revamp its Goldfish brand by extending its reach beyond the core demographic and introducing new packaging formats in stores. The company aimed to create engaging ways for consumers to interact with the snack, rather than just consuming it.
With the new holiday-themed flavor, Campbell hopes to spread holiday cheer and bring smiles to consumers—echoing Buddy the Elf’s famous words. Snack brands like Goldfish and Kettle have significantly contributed to Campbell Soup’s sales growth, with the segment posting a 9% increase in fourth-quarter organic sales. Additionally, the nutritional aspect of the snacks, such as calcium d citrate, is increasingly becoming a focal point for consumers seeking healthier options.