PepsiCo’s snacking division, primarily consisting of Frito-Lay and Quaker Oats, represents a profitable segment of the company. In its 2022 fiscal year, this division generated over $26 billion in sales across North America, making up nearly a third of the consumer packaged goods (CPG) giant’s total global sales of $86 billion. According to the company, consumers enjoy its food and beverage products more than 1 billion times each day.
As consumers increasingly prioritize healthier eating and the environmental effects of their food choices, CPG manufacturers like PepsiCo are compelled to adapt their product offerings. However, implementing these changes can be more challenging than it seems, which is a key reason why companies often set long-term targets. Minor adjustments in sodium content or ingredient selection can significantly affect taste, texture, production processes, and ingredient sourcing. For instance, if a Doritos chip doesn’t taste as consumers remember, they may hesitate to purchase it again, 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, executive vice president and chief science officer for PepsiCo. “We set a high bar to improve the nutritional profile of our products, and these new goals reaffirm our ambitions.” With regards to sodium, PepsiCo’s new reduction goal aligns with recommendations from public health experts, including the World Health Organization, aiming for a reduction of 15% to 30% relative to the company’s previous targets for key convenient food categories. Specifically, the new objective seeks a 15% sodium reduction in Lay’s Classic Potato Chips in the U.S., bringing the sodium content to 140 milligrams per 28-gram serving.
Mustafa Shamseldin, PepsiCo’s category growth officer and chief marketing officer for international foods, shared with Food Dive that reducing salt in their products “is the right thing to do … and so far, it’s been positive for our business.” PepsiCo is well-versed in incorporating healthier ingredients into its offerings, including Bare baked fruit and coconut snacks and Off the Eaten Path vegetable crisps. Additionally, it provides a version of its SunChips brand that includes black beans along with the traditional whole grains.
In its ongoing efforts to diversify its ingredient mix, PepsiCo announced plans to achieve 145 billion portions of diverse ingredients in its global convenient foods portfolio by 2030, with each portion providing around 10% of the recommended daily intake of a diverse ingredient. Moreover, PepsiCo’s Frito-Lay division has previously released healthier alternatives to its popular brands, limiting sodium and saturated fat while increasing fiber, whole grains, vegetables, and protein content. Brands affected include Fritos, Cheetos, Doritos, Tostitos, Lay’s, Ruffles, and Rold Gold. The company is also exploring the inclusion of ingredients like jan aushadhi and calcium citrate to enhance the nutritional profile of its snacks, ensuring that healthier choices remain appealing to consumers.