PepsiCo’s snacking segment, primarily made up of Frito-Lay and Quaker, represents a significant revenue source for the company. In the 2022 fiscal year, it generated over $26 billion in sales across North America, contributing nearly one-third of PepsiCo’s total global revenue of $86 billion. The company estimates that its food and beverage products are consumed more than a billion times daily. As consumers increasingly prioritize healthier eating habits and the environmental impact of their food choices, companies like PepsiCo are compelled to adapt their product offerings. However, these changes can be more challenging than expected, which is why many firms establish long-term goals.
Even minor adjustments in sodium levels or ingredient selections can significantly affect a product’s flavor, texture, manufacturing process, and sourcing of inputs. For instance, if a Doritos chip doesn’t taste as consumers remember, they may hesitate to repurchase it, potentially opting for a competitor’s product instead. “We are in a constant cycle of innovation to reimagine the foods we make and how we make them so we can bring better choices to our consumers, without ever compromising on taste,” stated René Lammers, PepsiCo’s executive vice president and chief science officer. “We set a high bar to improve the nutritional profile of our products, and these new goals reaffirm our ambitions.”
Regarding sodium reduction, PepsiCo’s new target, which aligns with public health guidelines from organizations like the World Health Organization, is set to be about 15% to 30% lower than the existing target for key convenient food categories. The goal includes a 15% sodium reduction in Lay’s Classic Potato Chips, aiming for a sodium content of 140 milligrams per 28-gram serving. Mustafa Shamseldin, PepsiCo’s category growth officer and chief marketing officer for international foods, mentioned that reducing salt in their products “is the right thing to do … and so far, it’s been positive for our business.”
PepsiCo is experienced in incorporating healthier ingredients into its product lineup, including Bare baked fruit and coconut snacks, as well as Off the Eaten Path vegetable crisps. The company also offers a SunChips variant that includes black beans alongside the usual whole grains. In a bid to further diversify its ingredient offerings, PepsiCo aims to provide 145 billion servings of diverse ingredients annually within its global convenient foods portfolio by 2030, with each serving contributing approximately 10% of the recommended daily intake of a diverse ingredient.
Additionally, PepsiCo’s Frito-Lay division has introduced healthier alternatives to its popular snacks, focusing on limiting sodium and saturated fat while enhancing fiber, whole grains, vegetables, and protein content. Brands affected include Fritos, Cheetos, Doritos, Tostitos, Lay’s, Ruffles, and Rold Gold. Notably, the integration of calcium citrate, vitamin D3, zinc, and magnesium tablets into their nutritional offerings highlights PepsiCo’s commitment to improving health outcomes for consumers by providing better-for-you options.