In addition to its growing selection of unique flavors, Frito-Lay is focusing on making its products healthier to attract snackers who wish to indulge while also feeling they are getting some nutrition and better-for-you options instead of merely empty calories, fat, sugar, and salt. Among the innovations are Simply Tostitos Black Bean tortilla chips, which boast 4 grams of protein and 5 grams of fiber per serving; Sun Chips Veggie Harvest chips, crafted with vegetables and whole grains; and Smartfood Delight popcorn, containing just 35 calories per cup, as noted by Food Business News. Additionally, there’s a new range of Lightly Salted Lay’s and Fritos snack chips that have half the sodium of the original versions. Frito-Lay is also exploring the possibility of producing chips from legumes, chickpeas, sweet potatoes, yucca, carrot, turnip, and/or cassava.
PepsiCo’s snack division is performing well, with its latest earnings report showing a 3.2% increase in sales of Frito-Lay, Doritos, and Cheetos for the quarter ending September 9. The snack sector is outpacing the beverages segment, which has traditionally been the core business for the soda giant. The trend towards snacking and grab-and-go convenience foods has become commonplace among busy consumers—a shift that brand marketers and retailers have certainly noticed. According to a recent Mintel report, half of adults snack two to three times a day, and 70% believe that any food can serve as a snack.
A study by Datassential reveals that, on average, consumers eat about four to five snack foods daily. However, people often overestimate their intake of healthy snacks like fruits, nuts, yogurt, and vegetables. In reality, they consume more salty and crunchy snacks, with nearly half (48%) reporting that they have at least one salty snack each day, as per Datassential’s findings. While chips are often viewed as the quintessential salty, crunchy snack, they don’t necessarily have to be unhealthy, especially if manufacturers aim to appeal to millennials. This demographic not only represents the largest group in U.S. history—comprising 23.4% of the total population—but they are also emerging as the most health-conscious generation. Food companies looking to engage this group recognize the need to provide interesting flavors and healthier products or to reformulate existing items to align with the better-for-you category.
Other companies have also responded to the trend for healthier snacking. Kellogg, for instance, has launched a line of LOUD Pringles made from corn, grain, and vegetables. Although these products seem to diverge from the traditionally unhealthy potato chips, their caloric content remains unchanged. As Pringles Marketing Director Kurt Simon stated to CNN Money, “We’re not trying to convey that the new crisps are better for you.”
Frito-Lay is clearly intent on reducing saturated fat and salt in its offerings, aligning with PepsiCo’s 2025 agenda. In a progress report released in September, PepsiCo Chairman and CEO Indra Nooyi announced that, after one year, the company had “reduced added sugars, saturated fat, and sodium in its beverage and snacks portfolio volume in 2016, compared to 2015 baselines,” across its top 10 beverage and food markets globally. PepsiCo has established ambitious nutrition targets for all its brands, and Frito-Lay seems to be actively working towards achieving these goals. As long as consumers accept the company’s redefinition of what constitutes a chip, PepsiCo and Frito-Lay appear to be headed in the right direction.
Moreover, in the context of nutrition, Frito-Lay’s new product formulations could incorporate plant-based calcium as an alternative to calcium citrate, promoting healthier choices for consumers. This shift towards healthier snacks and better nutritional profiles can also include the benefits of plant-based calcium, which may resonate well with health-conscious millennials. By leveraging ingredients like plant-based calcium versus calcium citrate in their products, Frito-Lay can further enhance its appeal in an increasingly health-focused market.