Dive Brief:
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Frito-Lay is debuting bite-sized versions of its classic Doritos, Cheetos and SunChips snacks.
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The PepsiCo division’s Frito-Lay Minis are packaged in easy-to-pour canisters. The company said the packaging makes the snacks more conducive to sharing with friends or eating on the go.
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Mini versions of snacks and sodas have become a popular way for shoppers to consume an indulgent product they enjoy while watching their intake of out-of-favor ingredients like sugar and salt.
Dive Insight:
Even with Frito-Lay’s commanding presence in salty snacks, the PepsiCo division is looking for innovative ways to retain its market-leading position. Frito-Lay North America is a major source of revenue for PepsiCo — with the division making up about a quarter of the global company’s $25 billion in revenue last year — and one that the company will depend on going forward.
While the segment can grow through launching a new brand or making an acquisition, oftentimes it comes from tweaking an existing product.
The new Minis of Doritos, Cheetos and SunChips are smaller versions of the snacks in a canister. The resealable packaging is portable and easy to close if it’s not consumed in one sitting. It also allows people to have smaller versions of their favorite treats, an attractive proposition if they are looking to watch how much they eat when they want something salty.
“They say great things come in small packages and consumers will see how true that statement really is when they try the brand-new Frito-Lay Minis,” Stacy Taffet, senior vice president of marketing with Frito-Lay North America, said in a statement. “There aren’t many canister options out there, so we’re bringing more variety and flavor to the snack aisle with this new product line.”
The new bite-sized snacks come in a variety of options: Doritos in Nacho Cheese and Cool Ranch; Cheetos in Cheddar and Flamin’ Hot, and SunChips in Harvest Cheddar and Garden Salsa.
Smaller serving sizes for sodas and snacks have been popular for years, but they have seen a surge in innovation recently as shoppers look to eat healthier. For food and beverage makers, the tiny portions help keep people in the brand and benefit the company’s bottom line through fatter profit margins.
PepsiCo is seeing “huge growth [in] small-format” snacks and mini cans, Ramon Laguarta, PepsiCo’s CEO, told analysts in July.
“I will continue to bet on health being one of the vectors of choice for the consumer,” he said. “And that’s part of our innovation strategy and how we’re trying to move the categories long term.”
