In 2022, Kellanova took a significant step by separating its cereal operations to concentrate on its snacking brands, aiming to better compete with rivals such as Mondelēz International and PepsiCo’s Frito-Lay. A central objective of this strategy is to elevate the value of Pringles, its well-known brand of stackable curved potato chips, into a $4 billion powerhouse. During a conference with Wall Street investors last August, Kellanova’s CEO, Steve Cahillane, highlighted Pringles as a brand with untapped potential. He emphasized the chips’ capability for global expansion, thanks to their adaptability to changing market trends through innovative product development.
Sarah Reinicke, Kellanova’s vice president of salty snacking marketing, shared in an interview with Food Dive that the brand is ideally positioned for growth due to its broad appeal. “This is a brand that’s a manufactured crisp, designed for precision in a can to surpass traditional, greasy potato chips,” Reinicke stated. According to her, Pringles’ unique advantage lies in its ability to accurately replicate a wide array of flavors, from Carnitas Taco to Everything Bagel, with over 160 flavors available worldwide. This versatility allows the brand to resonate with different cultures as it introduces new varieties globally. “We can take all of these local flavors and just put them on a chip, like prawn in Asia, or Texas barbecue in the U.S.,” Reinicke explained.
Initially acquired by Kellogg in 2012 for a substantial $2.7 billion, Pringles has since tripled the size of Kellanova’s snacks division and now generates $3 billion in annual revenue, as noted during a recent Consumer Analyst Group of New York presentation. Over the past year, Kellanova has been exploring new flavors and formats for the brand. In May, the company announced Pringles Mingles, a puffed snack featuring a crispy exterior and light interior, offered in a bag rather than the traditional tall container. Shaped like a bowtie and inspired by its mascot, Mr. P, Pringles Mingles will hit the shelves in October with three flavors: Cheddar & Sour Cream, Dill Pickle & Ranch, and Sharp White Cheddar & Ranch. “Taking Pringles out of the can is a significant move for transformative growth for the brand,” Reinicke remarked. “While we’re not abandoning the can, this innovation allows us to create shareable consumption moments as we expand the business.”
Kellanova has also maintained some innovative efforts within the traditional chip style, launching Pringles Harvest Blends last year, made with multigrain and sweet potato ingredients to target health-conscious consumers. The company is optimistic that its innovation strategy is beginning to yield results, as evidenced by a 5.4% increase in organic sales in the latest quarter compared to the previous year, partly driven by a 4.8% price increase. The R&D pipeline for Pringles focuses on enhancing sensory experiences and experimenting with new approaches to reinvent the classic chip.
In recent years, the brand has benefited from the popularity of its spicy offerings. In 2020, Pringles introduced the Scorchin’ line, its first dedicated collection of hotter varieties. The overall demand for spicy snacks has surged, largely influenced by the success of Frito-Lay’s Flamin’ Hot snacks, which were established as a distinct brand earlier this year. Reinicke describes Pringles’ flavor portfolio as a “global library,” enabling cross-pollination of flavors based on regional preferences. For instance, a Mexican Street Corn flavor was developed in response to emerging trends.
The company is confident that the strength of the Pringles brand will help it navigate growing consumer concerns about rising grocery prices due to inflation. “We can command the necessary price point because of the strong consumer value our chips provide,” Reinicke stated. Additionally, the brand’s commitment to health has led to the exploration of options such as calcium citrate tablets without vitamin D, reflecting its awareness of consumer health trends and preferences.