Lay's From Wikipedia, the free encyclopedia Jump to: navigation , search Lay's Type Potato Chips Current owner Pepsico Country of origin United States Related brands Frito-Lay Wavy Lays K.C. Masterpiece Lay's WOW chips Lay's Stax Markets world Previous owners 1932 - Herman W. Lay 1961- the Frito Company and Lay's merged to form Frito-Lay Inc. 1965 - Frito-Lay merged with the Pepsi Cola Company to form Pepsico, Inc. Website http://www.lays.com/
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Lay'sFrom Wikipedia, the free encyclopedia
Jump to: navigation, search
Lay's
Type Potato Chips
Current
ownerPepsico
Country of
originUnited States
Related
brands
Frito-Lay
Wavy Lays
K.C. Masterpiece
Lay's WOW chips
Lay's Stax
Markets world
Previous
owners
1932 - Herman W. Lay
1961- the Frito Company and Lay's merged
to form Frito-Lay Inc.
1965 - Frito-Lay merged with the Pepsi Cola
Company to form Pepsico, Inc.
Website http://www.lays.com/
Lay's is the brand name for a number of potato chip (crisps in British English) varieties as well as the name of the company that founded the chip brand in 1938. Lay's chips are marketed as a division of Frito-Lay, a company owned by PepsiCo Inc. since 1965. Other brands in the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos and Rold Gold pretzels.
In 1932 salesman Herman W. Lay opened a snack food operation in Nashville, Tennessee and, in 1938, he purchased the Atlanta, Georgia potato chip manufacturer "Barrett Food Company," renaming it "H.W. Lay & Company." Lay criss-crossed the southern United States selling the product from the trunk of his car. In 1942, Lay introduced the first continuous potato processor, resulting in the first large-scale production of the product.
The business shortened its name to "the Lay's Company" in 1944 and became the first snack food manufacturer to purchase television commercials, with Bert Lahr as a celebrity spokesman. His signature line, "so crisp you can hear the freshness," became the chips' first slogan along with "de-Lay-sious!" As the popular commercials aired during the 1950s, Lay's went national in its marketing and was soon supplying product throughout the United States.
In 1961, the Frito Company founded by Elmer Doolin and Lay's merged to form Frito-Lay Inc., a snack food giant with combined sales of over $127 million annually, the largest of any manufacturer. Shortly thereafter, Lays introduced its best-known slogan "betcha you can't eat just one." Sales of the chips became international, with marketing assisted by a number of celebrity endorsers.
In 1965, Frito-Lay merged with the Pepsi-Cola Company to form PepsiCo, Inc. and a barbecue version of the chips appeared on grocery shelves. A new formulation of chip was introduced in 1991 that was crisper and kept fresher longer. Shortly thereafter, the company introduced the "Wavy Lays" products to grocer shelves. In the mid to late 1990s, Lay's modified its barbecue chips formula and rebranded it as "K.C. Masterpiece," named after a popular sauce, and introduced a lower calorie baked version and a variety that was completely fat-free (Lay's WOW chips containing the fat substitute olestra).
In the 2000s, kettle cooked brands appeared as did a processed version called Lay's Stax that was intended to compete with Pringles, and the company began introducing a variety of additional flavour variations.
Frito-Lay products currently control 55% of the United States savory snack-food market.[1]
[edit] International
Main article: Walkers (snack foods)
Walkers is a snack food manufacturer in the United Kingdom best known for manufacturing crisps. PepsiCo has owned the Walkers crisp label in the United Kingdom since 1991 and distributes Lay's product via this brand name. The logo for the British version is notably similar to the American brand, featuring a red ribbon around a yellow sun. The other Frito-Lay brands are also distributed through the Walkers label.
In The Netherlands Lay's are sold in three varieties: Lay's, Lay's Light and Lay's Sensations (Thai Sweet Chili/Red Paprika/Oven Roasted Chicken and Thyne - [available in Cologne/Aachen only through the German locations of Delhaize). Lay's Super Chips (Heinz Ketchup/Mexican Pepper/Perfect Pickles/Salt 'n' Pepper [all through Delhaize) and Lay's Baked Chips (Mediterranean Herbs/through Delhaize). As with Doritos, Lay's are manufactured, distributed and imported in Germany by Frito Lay's Benelux division, Smith's Food Group.
In India, Bollywood superstar Saif Ali Khan and Indian cricketer Mahendra Singh Dhoni endorse Lays.
In Argentina, Lays was commercialized before 2001 with the name Frenchitas and Chizitos for the Cheetos.
In Australia, Pepsico acquired the The Smith's Snackfood Company in 1998 and marketed Frito-Lay products under that label, using the name Thins. After Thin's was sold to Snack Brands Australia (Owned by Arnotts), Smith's produced a line of potato chips under the Lay's brand for a brief period of time. The Lay's line was eventually rebranded in 2004 as Smith's Crisps, while the traditional Smith's line was renamed Smith's Crinkles. Thins is still sold in Australia as a direct competitor to Smith's Crisps.
In Canada, the chips are distributed through the Lay's label.
In Mexico, Pepsico acquired Sabritas S. de R.L. in 1966. Lay's along with other products such as Cheetos, Fritos, Doritos and Ruffles are marketed under the Sabritas brand. The logo for the Mexican company sports the red ribbon, but it has a stylized smiling face instead of the sun. It controls around 80% of the market there.
In Israel, the Lay's label is distributed with the name Tapochips (תפוצ'יפס)
In France, the famous singer Sébastien 'Angel' De Sousa from the Arthur Crew is sponsored by Lay's corp.
In Germany, Lay's are sold in three varieties: Lay's, Lay's Light and Lay's Sensations (Thai Sweet Chili/Red Paprika/Oven Roasted Chicken and Thyne - [available in Cologne/Aachen only through the German locations of Delhaize). Lay's Super Chips (Heinz Ketchup/Mexican Pepper/Perfect Pickles/Salt 'n' Pepper [all through Delhaize) and Lay's Baked Chips (Mediterranean Herbs/through Delhaize). As with Doritos, Lay's are manufactured, distributed and imported in Germany by Frito Lay's Benelux division, Smith's Food Group. Several flavors as noted above are only available through Delhaize (Belgian supermarket chain)] which has opened 2 locations in Cologne and Aachen (Delhaize Germany locations, Lay's Flavors Benelux).
In September 2007, Lays changed their logo. It is similar to the previous one, but with more of a 3D look and the letters 'a' and 'y' connected. The bags themselves were also redesigned.
In Brazil, chips are distributed under a Lay's sister-company, Elma Chips.
[edit] Slogans
This section may require cleanup to meet Wikipedia's quality standards. Please improve this section if you can. (March 2009)
Happiness is Simple. (2009) Simply Made. Simply Good. (2009)
That's another reason to smile! (2007)
Food for the fun of it! (2007)
Lay's, get your smile on! (2006-)
Lay's. Want some?
Betcha can't eat just one (1960s-2006)
Κανείς δεν μπορεί να φάει μόνο ένα! (Nobody can eat just one) (Lay's Greece)
Lays ka mazaa lo(Lay's Pakistan) meaning- Have fun with Lay's
You can't eat just one....Lagi bet! (Lay's India)
Har programme ka main food (Lay's India) meaning "The main food for every programme"
No one can eat just one (Lay's India)
É impossível comer um só (Brazil) "It's impossible to eat just one"
¿A que no puedes comer solo una? (Lay's Spain, Peru, México, Chile and Argentina) meaning "You can't eat just one, can you?"
Lay's. Vrei si tu? (Lay's Romania) meaning "Want some?"
Lay's MAX - More for me,better for me!(Romania)
Лэйс - захрустишь,не устоишь!(Russia)
Kartą paragavęs negali sustot! (Lithuania)
停不了的乐事！ (Lay's China) meaning "Cannot stop the joy!"
Lay's. Kérsz? (Hungary) meaning "Want some?"
[edit] Flavours
Except for barbecue-flavor potato chips, which were introduced no later than 1958, up until the last 20 years, the only flavor of potato chips had been the conventional one. Despite an explosion of new flavors, the unadorned original is still the selection of 81% of consumers.[2]
In the United States, Lay's offers a number of flavor combinations, in addition to the classic chips. Flavored products in the traditional fried varieties include sour cream & Onion, Barbecue, Cheddar & sour cream, Hidden Valley Ranch, salt & vinegar, salt & pepper, Flamin' Hot, dill pickle, limón (Lime) and a thicker "Deli style" chip. Canadian sellers have a number of varied flavors, with curry, ketchup, poutine, pizza, Fries'n Gravy, roast chicken, smokey bacon, salsa, wasabi, spicy Indian masala and sea salt and pepper brands available. The marketing success of these flavors in Canada sometimes leads to a limited time offering of a flavor to the south, with the dill pickle recently appearing in the United States after a successful run.
Interestingly the name 'sour cream' has got Lay's into a lot of confusion in some countries. In India for instance the name was changed to American style cream and onion after consumers reported their discomfort with the idea of 'sour' cream
In the baked products, there are classic, barbecue and sour cream & onion varieties. The kettle cooked version includes original, sea salt & vinegar, mesquite barbecue and jalapeño brands. Wavy Lay's have original, hickory barbecue, ranch and Au Gratin flavors while Lay's Stax offers original, sour cream & onion, Cheddar, barbecue, ranch, pizza and salt & vinegar. The newest variety, Lay's Natural has thick cut barbecue and sea salt brands.
The WOW! brand was rebranded in 2004 as Lay's Light after the olestra formula was altered and the U.S. Food and Drug Administration allowed removal of warnings about various health consequences of the fat substitute.
Outside North America, Lay's in Greece and Cyprus are made and packed by Tasty Foods and Corina Snacks LTD, with Mediterranean flavors which include Feta cheese flavor, Tzatziki flavour, Olive and Tomato, Oregano, Sea Salt & Black Pepper and various more. There are
hundreds of sub-variations of the Mediterranean line and the company performs constant experimentations to create new flavors and adjust them to each country's liking. In some countries such as Argentina variations of the Mediterranean tastes exist include Olive Oil and Parmesan Cheese, Olive Oil and Tomato, Olive Oil and Basil, Greek Tzatziki Cheese with onions, Lasagna, Beef Carpaccio with Parmeggiano and Smoked Manchego Cheese. In Belgium there is a version of Cucumber and Goats Cheese. Finally in Chile there is a version of Lemon and Cilantro (Coriander) and Sour Cream and Onions.
In Australia, a cilantro version exists while a hot & sweet chili, sweet corn and cotija cheese brand can be found in South America.
Another flavor sold primarily in southern Asia is called "Magic Masala." This flavor is very popular in India, Pakistan, and Bangladesh. Flavors featured in Thailand include Nori Seaweed, Basil, Squid, Spicy Chili Squid, Seafood and Mayonnaise, and Spicy Seafood.
There are a number of unique products in the United Kingdom sold under the Walkers label, including prawn cocktail, beef & onion, Greek kebab and Marmite yeast extract. Under the Smith's label in Australia, unique flavors include Greek Feta & Herb and Italian Tomato & Basil.
Russia has "Lay's MAX" chips (Chicken, Sour cream & Onion, Sour cream & Cheese, Ham & cheese flavors) and some international "Lay's" flavors plus Russian "Lay's" flavor - Mushrooms & Sour cream, Crab and Red caviar.
In Romania the Lay`s flavors are: Salt, Paprika, Cheese, Barbecue, Sour Cream & Dill; the Lay's Sensations flavors are: Thai Chili, Baked chicken with lemon and thyme; Lay's Max and Lay’s Sticks flavours are: Paprika and Salt.
In Poland the chips flavors are: Green Onion, Mushrooms & Sour Cream, Chicken, Original, Paprika, Hot pepper, Original, Ketchup, Fromage, new potatoes with basil. Also there is Lays Apettite which is also part of lays and has the following flavors: Kebab, Pepper and Cheese, Onion and Cheese.
In parts of South America (notably Argentina and Uruguay), Lay's flavored products are sold with the "Lay's Mediterraneas" label, and include such flavors as ham, tomato and basil, tomato Parmesan, and oregano. Peru has "Lay's Sabores Peruanos" (Lay's Peruvian Flavors), with flavors like queso andino (Andean cheese); also recently was released Lay's Dips, that includes a "Peruvian Criollo Chili" sauce sachet.
In Ukraine there is crab, bacon, Cheddar, and sour cream and green onion
In Thailand there is Classic, Sour Cream & Onion, Cheese & Onion, Mexican Bar-B-Q, Japanese Nori Seaweed. Flavors also come and go usually with an international theme, for example: French Mayonnaise, Balsamic Vinegar and Salt (England), Garlic Soft Shelled Crab (Hong Kong), Soy Sauce, Salmon Terriyaki (Japan), Lobster, Bacon & Cheese (America). Also traditional "Thai" flavors include Tom Yum, Thai Chili Paste, Thai Seafood Dip, Chili and Lime. Popular flavors are often kept in circulation longer.
There are currently 12 regular Lay's flavors in Canada, though there are more, available only in certain parts of the country. The flavors available nationwide are the following: Classic (yellow), BarBQ (black), Salt & Vinegar (teal), Ketchup (dark red), Wavy Original (red), Dill Pickle (bright green), Smokey Bacon (brown), Sea Salt & Pepper (silver), Sour Cream & Onion (green), Roast Chicken (light brown), Sweet Chili (blue) and finally Lightly Salted (bright blue). Also, in select Canadian markets (Toronto & Vancouver) Lay's has introduced international flavors such as "Spicy Curry" and "Spicy Indian Masala" to appeal to a wider consumer group.
Lay's have entered the German market with some success in the last couple years. All 3 key Lay's brands are distributed with 2 flavors for each brand. The following flavors are marketed in Germany:
Lay's o Lay's Natural
o Lay's Paprika (Bell Pepper)
Lay's Light
o Lay's Paprika (Bell Pepper)
o Lay's Salted/Natural
Lay's Sensations
o Lay's Red Sweet Paprika (Bell Pepper)
[edit] Nutritional information
As a snack food, the Lay's brands contain very few vitamins and minerals in any variety. At ten percent of the daily requirement per serving, vitamin C is the highest. Salt content is particularly high, with a serving containing as much as 380 mg of salt.
A one ounce (28 gram) serving of Lay's regular potato chips has 130 calories and contains ten grams of fat, with three grams of saturated fat. Kettle cooked brands have seven to eight grams of fat and one gram of saturated fat but are 140 calories. Lays Natural has nine grams of fat, two grams of saturated fat and 150 calories. Stax typically contain ten grams of fat, 2.5 grams saturated fat and are 160 calories per serving. Wavy Lays are identical to the regular brand except for a half-gram less of saturated fat in some combinations. The various brands do not contain any trans fats.
The baked variety, introduced in the mid 90's, feature 1.5 grams of fat per one ounce serving, and have no saturated fat. Each serving has 110 to 120 calories. Lay's Light servings are 75 calories per ounce and have no fat.
Lay's Classic Potato chips were cooked in hydrogenated oil until 2007. Currently, the chips are made with 100% pure sunflower oil.
There are many flavors of Baked Lays as well. Baked Lays are produced in Cheddar, barbecue, sour cream and onion, and original.
See also: Olestra
[edit] Pork Enzymes
Some Frito-Lay brand seasoned products, including some flavors of Lay's, contain pork enzymes in addition to herbs, cheese and other seasonings. Frito-Lay's web site[1] states that they use enzymes from pigs (porcine enzymes) in some of their seasoned snack chip products to develop 'unique flavors'. The presence of pig-derived ingredients makes them haraam for Muslims to eat, as well as not being Kosher, thus also unsuitable for Jews or vegetarians.
Calories in Lay's chips
There are: approx 140 calories (16 carbs) in 1 oz of Lay's Kettle Cooked, Jalapeno Chips approx 150 calories (15 carbs) in 1 oz of Lay's Classic Chips
approx 152 calories (15 carbs) in 1 oz of Lay's KC Masterpiece Barbecue Chips
approx 150 calories (15 carbs) in 1 oz of Lay's Cheddar and Sour Cream
approx 150 calories (15 carbs) in 1 oz of Lay's Salt and Vinegar Chips
approx 150 calories (15 carbs) in 1 oz of Lay's Wavy Original Chips
approx 160 calories (15 carbs) in 1 oz of Lay's Sour Cream and Onion Chips
approx 160 calories (15 carbs) in 1 oz of Lay's Flamin' Hot Chips
In Lay's baked there are: approx 110 calories (23 carbs) in 1 oz of Lay's Baked Original chips approx 122 calories (22 carbs) in 1 oz of Lay's Baked KC Barbecue chips
approx 122 calories (21 carbs) in 1 oz of Lay's Baked Sour Cream and Onion
approx 120 calories (21 carbs) in 1 oz of Lay's Baked Cheddar and Sour Cream
In large bags there are: approx 1100 calories (230 carbs) in a 9.9 oz bag of Lay's Baked Original chips
approx 1200 calories (220 carbs) in 9.9 oz bag of Lay's Baked KC Barbecue chips
approx 1200 calories (210 carbs) in 9.9 oz bag of Lay's Baked Sour Cream and Onion
approx 1200 calories (210 carbs) in 9.9 oz bag of Lay's Baked Cheddar and Sour Cream.
For the calories in other foods, and calorie charts that you may use as daily guides, see the page links, further down
Just Potatoes, Natural oil and a dash of salt! Lay’s Potato chips are an icon of American Culture. Potato chips are a staple in 70% of homes, and are a mandatory at picnics and parties. The goal of this campaign is to get consumers to think differently about Potato Chips – No Guilt! To celebrate the Lay’s Potato chips people love and the three simple ingredients that make up the product…and blend this with the surreal effect of the good, old days of families and the community coming together, far away from the maddening hectic, urbane lives of today.
and I am loving every bit n moment of being part of this Iconic brand’s culture, in India!
Frito-Lays hopes to bite into ITC’s share with ‘Desi Beats’
Lalitha Srinivasan Posted: Wednesday, Dec 17, 2008 at 0014 hrs ISTUpdated: Wednesday, Dec 17, 2008 at 0014 hrs IST
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Mumbai: There is a new twist in the ongoing market warfare between ITC Foods and PepsiCo’s Frito-Lay India in the Rs 3,200 crore branded snacks sector in India. In a bid to take on its archrival ITC Foods, Frito-Lay India has opted for a swadeshi branding strategy by launching ‘Desi Beats’, as part of its flagship snack brand Kurkure’s brand portfolio.
With this move, PepsiCo is now directly competing with ITC Bingo’s Mad Angles. “In appearance, Pepsi’s new brand ‘Desi Beats’ is an exact replica of Bingo’s Mad Angle. It’s a clever strategy of PepsiCo to gain market share in the highly competitive sector,” said an industry analyst in Mumbai. With a shift in brand strategy, the market dynamics will soon change in the branded snack sector in India.
However, imitation is not the best form of appreciation for ITC Foods. For, the company is getting ready to launch an aggressive advertising campaign, which will emphasis the originality of Bingo’s Mad Angles in its communications. “Very soon, ITC Foods will launch its media blitz which will talk about the uniqueness of the product which has fared very well in the Indian market place,” informed key industry sources. Currently, Ogilvy & Mather (Bangalore) is giving finishing touches to ITC Foods brand new ad campaign.
Across the road, Frito-Lay India is fine-tuning its marketing strategy to promote its new launch ‘Desi Beats’ across the country. To support its high-voltage television campaign, Frito-Lay will be launching a host of promotional activities which include radio advertising, outdoor promotion and on-ground activities.
On the core advertising strategy for ‘Desi Beats’, Rohit Ohri, senior vice president & managing partner JWT India said: “In our communications, we have positioned the brand as ‘no fun with out desipan’. To support the launch, we are rolling out a multi media ad campaign featuring cine star Kareena Kapur.”
According to a spokesperson from PepsiCo, ‘Desi Beats’ is a new age snack from the house of Kurkure, made by leveraging Pepsico’s Technological know how, using Indian ingredients. “The product was launched keeping Indian tastes in mind. Targeted at the youth segment, it is an all new snack with a stylish Indian twist,” he added.
Now, the vital question is: Who will emerge as the winner in this battle for market share?
Frito-Lay India Delivers a Cracker of a Launch with Aliva Date:09 Jun 2009
Type:Business News
Source:Food Ingredients First
Sector:Snacks & Nuts
Summary:Aliva is yet another milestone in Frito-Lay India’s journey to transform its portfolio to address the growing consumer focus on wellness and ingredients.
09/06/09 Frito-Lay India, the food division of PepsiCo India launched a new brand - Aliva, a product range developed in India especially for the Indian consumer. After Kurkure’s enormous success, Aliva marks Frito-Lay India’s creation of a new baked savoury cracker category – borrowing ingredients & textures from biscuits & flavourful experiences from namkeens. Aliva is a significant step in the company’s journey of portfolio transformation towards providing healthier and tasty snacking options in line with the local consumers’ needs.
Aliva is a significantly differentiated product that has many firsts: four authentic Indian flavors, do good ingredients like wheat & lentils, an iconic shape and premium packaging. Aliva is being launched across the country from this week. With the launch of Aliva the company aims to
create a new sub-segment of great tasting savoury crackers in the greater than 1500M ton biscuit category.
Speaking at the launch Mr. Gautham Mukkavilli, CEO, Frito-Lay India and President, PepsiCo, India Region , said , “We are delighted to introduce Aliva – a truly Indian innovation. With Aliva we aim to replicate the success we achieved with Kurkure in a shorter time span. Aliva is yet another milestone in Frito-Lay India’s journey to transform its portfolio to address the growing consumer focus on wellness and ingredients. We will manufacture Aliva at our Ranjangaon plant where we have deployed a new state of the art baking line with Frito-Lay’s flavour technology.”
Speaking on the launch Ms. Deepika Warrier, Director Marketing, Frito-Lay India, said, “ Aliva is an innovation specially created keeping the Indian palate in mind. Frito-Lay India has continuously kept its ear to the ground, which is what makes us the leaders in the snacks category. Aliva is a baked product that will enable our consumers to snack smart with absolutely no compromise on great taste. The launch is backed by extensive market research and has been developed basis consumers’ need for a flavourful yet healthy snack. Our initial market tests have received an extremely encouraging response from our consumers who love the unique combination of authentic Indian flavours with wheat and daal.”
Aliva will be available in four distinct Indian flavours Special Pindi Masala, Tomato & Roasted Spices, Mint Flavour with Herbs & Original Salted using special local spices unique to different regions of the country. It is a baked product and contains no artificial flavors or colours and has zero transfat. Aliva will be available at an introductory price of Rs. 12 for 60 grams. Frito-Lay India has drawn an intensive consumer activation campaign to market Aliva. The 360 degree marketing communication plan will revolve around the product core – “Chatpate crackers with Wheat & Daal.”
Lay's goes in for new flavour: Co-creation
Seema Sindhu / New Delhi November 09, 2009, 0:11 IST
Frito-lay’s latest campaign comes in the backdrop of a volume war.
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Companies will need to interact with their customers so closely that they actually “co-create” value with them on an individual basis.— C K Prahalad in his book The New Age of Innovation, published in 2008
The top brass at Frito-Lay, the foods division of PepsiCo India, is taking the management guru’s advice quite seriously.
Frito-Lay’s new campaign for Lay’s – “Give Us Your Dellicious Flavour” is giving consumers an opportunity to co-create the flavour they like for Lay’s. The winner will receive a mega prize of Rs 50 lakh plus 1 per cent of the sales turnover from the new flavoured snacks, which will be launched by the end of May 2010. Consumers can send in their entries by post, drop boxes, email, website and SMS.
Deepika Warrier, Frito-Lay's executive director, marketing, is excited. “Personally, I am keen to see what interesting and innovative flavour ideas India will give us," she says. The campaign, executed by JWT, is to reap "interactive" benefits as consumers love to own brands.
The commercial begins with Saif getting himself a tattoo on his forearm. When he sees the tattoo, he realises that the artist has tattooed 'kareepatta' (curry leaves) on his arm, which is the former's favourite flavour. He storms out of the place with a pack of Lays, when he sees a man with a red and green tattoo saying 'tomato chutney'. Similarly, a girl with raw mangoes tattooed all over her says 'Kacchi Ambi'. In the end, Saif ask all of them to tell Lay's about their favourite flavour.
Ad gurus are quick to endorse the brand strategy. “Brands of the future will be owned by consumers and not the marketers,” says Ashish Mishra, business head and chief strategist, Water (Mudra’s strategy and design consulting arm).
An increasing number of companies (Frito Lay’s competitors included) are doing precisely that to drive up engagement levels and interactivity with consumers. Frito Lay, for example, had launched a similar campaign last year which asked consumers to vote for the flavour of their choice between the new launches - Spunky Pimento and Balsamic Blast. Titled 'Fight for your flavour', the campaign had Saif Ali Khan and M S Dhoni. Even Kurkure ran a campaign which asked consumers for recipes. The winning entrant’s family was featured on the packets of the snack.
Lay’s is the leader with a market share of around 48 per cent, Bingo has 13 per cent and Parle’s Musst Chips and Musst Stix have a combined 5-7 per cent market share. But the new Frito-Lay campaign comes in the backdrop of a volume war among the three players (Frito-Lay, ITC and Parle). ITC recently added 50 per cent more content to all its Bingo packs without increasing prices. Lay’s followed with 20 per cent extra content and Parle Products with 50 per cent extra on Musst Chips and Stix.
Recently, Parle launched Monaco Smart Chips, which it claims, is the only baked chips and hence being positioned in the healthy category. Parle is eyeing a 25 per cent market share through an aggressive marketing and distribution strategy. Parle has signed Aamir Khan for Smart Chips.
But Frito-Lay is unruffled. It says that it has already taken the “health positioning” into account. "We have been innovating continuously in the health and wellness area under our "snack smart" programme. We’ve ensured that Lay’s offers consumers great tasting chips made from the freshest, best quality natural potatoes, made from best
quality seasonings which contain zero MSG, and are cooked in rice bran oil (40 per cent less saturated fat) and contains zero trans fats," says Warrier.
It’s not clear whether Lay’s will also follow Kurkure into the lower price segment. Kurkure is now available also at Rs 3 a pack, while Lay’s is available in Rs 5, 10 and 20 price points.
Lays the hottest potato chips brand in India has announced “Give us your dillicious flavour” campaign. All that the customers have to do is to give their favorite flavour and win fifty lakh rupees and 1 percent of sales from the new flavor.
The campaign was inaugurated by Ruchira Jaitly, Vice President Marketing, PepsiCo India (Frito-Lay India division). Speaking during the occasion she said, “Considering the diversity of tastes in our country, the campaign surely will be exciting. Personally, I am keen to see what interesting and innovative flavour ideas India will give us.”
This will help Lays plan their next flavour as per the taste of the Indian consumer. The program will be on till May 2010.
So who will judge the winners, celebrity chef and anchor NDTV Good Times, Aditya Bal, Anuja Chauhan, author and Executive Creative Director and VP of JWT, and Dr T S R Murali, Director, R&D, PepsiCo India.
The entries for the contest can be sent between November 2009 and January 2010. The panel will announce four winning flavors.
After this all the four flavors will be launched in the market and the most popular one will be chosen the winner. Whoever gets the largest number of votes will take home Rs 50 lakhs and 1% of the total sales turnover.
A commercial featuring Saif Ali Khan is also planned as a promotion for the campaign.
New Delhi: Frito-Lay, the foods division of PepsiCo India Holdings Pvt. Ltd,
is repositioning its brands and investing significantly in growing its market
share in the country.
“We aim to increase our production capacity by a third by next year,” said
Gautham Mukkavilli, managing director of Frito-Lay in India.
“To do that, we are focusing and investing strongly in product innovation,
and aggressive marketing initiatives so that we can differentiate Frito-Lay
from its competition,” he said, declining to specify exact amounts it would
invest.
The Indian snack food and biscuits market is worth Rs14,000 crore, and adding Rs5,000 crore in value every
year, he said.
Frito-Lay, that sells brands that include Cheetos, Kurkure, Lays, Uncle Chipps, Lehar and Quaker Oats
breakfast cereal, is now marketing these products on platforms such as youth, and health and wellness, to
reach distinct consumer groups, Mukkavilli said.
A file photo of Gautham Vision ahead: Mukkavilli, managing director of Frito-Lay in India. The firm has brands such as Cheetos and Kurkure. (Ashesh Shah / Mint)
Starting next month, Cheetos will be available in two new flavours with added
vegetables, reduced fat and seasonings to appeal to health-conscious youth.
Similarly, two new flavours were recently added to Lays chips that is now being
marketed by brand ambassadors actor Saif Ali Khan and cricketer M.S. Dhoni in
an ad blitz called “fight for your flavour,” where consumers get a chance to vote
for their favourite flavour.
Kurkure has also been launched in a new tomato flavour and is now being
positioned as a youth brand rather than its earlier avatar of a family snack. Further, south Indian actor
Simran has been roped in as the brand’s new face over current brand ambassador actor Juhi Chawla.
“We are strengthening the brand’s presence in the South where the response for Kurkure has been very
positive,” said Mukkavilli.
An “aspirational” positioning was taken for Stax, which was launched in six new flavours this February to
appeal to “consumers with modern and expensive tastes”.
The four new flavours it added to Quaker Oats in December worked well for the brand as it “doubled in
volumes”. he said. The company is now exploring opportunities in bringing to India other products under the
Quaker brand that include oat-based breakfast bars and cookies.
The innovative initiatives, however, come at an increased cost to consumers.
The firm has hiked prices across brands by 10%, which Mukkavilli said “may increase further depending on
inflation”.
According to a media buyer close to the developments, Frito-Lay’s ad spends increased close to 15% from
last year to about Rs70 crore this year to accommodate its new plans. PepsiCo’s market share in the salted
snack food segment is 60%, followed by ITC Ltd at 10% and other players such as Haldirams Foods
International Ltd and Balaji Wafers Pvt. Ltd filling up rest of the branded market, he said, declining to be
named.
“While Frito-Lay will never really be categorized as a health food brand, its initiatives are basically trying to
prove that its quality is higher than its competitors,” he said.
“These initiatives are measures to combat the growing awareness of obesity and health issues in the
country.”
Saif-n-Kaif from Frito-Lay
Frito-Lay India, manufacturers of leading snack brands announced Bollywood star Saif Ali Khan and Indian cricketer Mohammad Kaif as brand ambassadors for Lay's Potato Chips. The company also launched its newest flavour, Saif-n-Kaif Hot and Sweet Chilly, Caribbean Style to coincide with the ICC World Cup 2003.
As brand ambassadors, Saif and Kaif will promote the brand and will be involved in the ICC World Cup promotions that Frito Lay will run in February. They will also feature in the
new advertising campaign that is centered around the irresistibility of Lay's chips and passion for cricket in India. The contrasting personality traits of the two stars are seen as being core to the twin taste in the new flavour - Saif-n-Kaif Hot & Sweet Chilly Caribbean Style.
"Lay's personality is warm, mischievous, light hearted, fun and endearing, values that Saif Ali Khan has popularised in his film characterizations. In addition, research with core target audience (13-18 boys and girls) indicates that Saif is relatable and brings with him an ease and a boy-next-door's natural wit-'n'-charm. He is seen as a guy who infuses fun in any situation, said Manu Anand, Managing Director, Frito-Lay, India. "On the other hand, Mohammad Kaif symbolises the fiery spirit of young India. The NatWest win established him as a gritty cricketer to reckon with. Together Saif and Kaif represent the two contrasting values which are embodied in the flavour experience."
Lay's will continue using the duo through various exciting innovations in promotions, packaging and new flavour launches. This will keep the buzz around the brand alive and the company will deliver on its promise of providing continuous excitement to its consumers through its products, promotions and ad campaigns.
"It is very exciting to be associated with a fun brand like Lay's. I am sure Saif-n-Kaif Hot & Sweet Chilly, Caribbean Style with its spicy, tangy taste is a flavour that will go down well with the younger generation," said Saif.
To further highlight the official chip status of Lay's in the world cup, Kaif comes in as the perfect ambassador from the cricket world.
"I am happy to be the brand ambassador for Lay's along with Saif. Cricket and Bollywood are the two passions of India and I am sure people are going to enjoy seeing us in the forthcoming campaign," said Kaif.
The launch of Saif-n-Kaif Hot & Sweet Chilly Caribbean Style is a timely addition to the flavour repertoire of Lay's, which has introduced American Style Cream and Onion, BBQ chicken, Spanish Tomato Tango and Italian Cheesy Paprika flavours in the last two years. The range of international flavours has established the brand as a unique pioneer with flavours that no one can match.
The new flavour will be available across the country in packs priced at Rs 5 and Rs 10 respectively. The flavojur is being launched in three price points - Rs. 5, Rs. 10 and to mark the ICC Cricket World Cup, a new cricket bag is being launched at Rs 20.
Lay’s - world’s largest and favorite snack food brand, has also steadily established itself as an
indispensable part of the “snacking culture” in India since its launch in 1995.
Lay’s, with its irresistible tastes, international & Indian flavors and young imagery has established itself as a
youth brand and continues to grow in the hearts and mind of its consumer!
. These perfectly shaped bite-sized crisps come in 6 irresistible, international flavors. These crisps are stacked in shareable tray, in a trendy can! Lay's Stax caters to the tastes of the Global Indian citizen, who has an evolved palate. But don't just take our word for it - go grab your Stax now!
Know MoreBrand Advantage
Lay’s is a SNACKSMARTTM product is 100% vegetarian
Quality Standards
Lay’s is made in automated plants in three locations – Channo (Punjab), Kolkata and Pune.
These plants are also audited and certified by various external agencies. These certifications include
HACCP (Hazard analysis & critical control point),
Certification by TQCSI (Australia), which confirms that products are manufactured in Food Safety
Environment & manufacturing has adequate controls to ensure product tracking,
AIB International: one of the best auditing body which confirms process and product safety.
Our plants are ISO 14000 certified which confirms that the manufacturing process ensure environmental
safety.
Our plants are also certified to ensure that the product, process, environment and people safety have been
maintained at very high level and this certification is issued by OHSAS 18001 (Occupational Health & Safety
Assessment Series – USA)
The potatoes have now become delicious chips and are packed and delivered to a store near you.
Know More
Did You
Know? Lay’s is a SNACKSMARTTMproduct. Lay’s is made with India’s best quality
fresh potatoes, simply sliced and cooked in Rice bran oil, and then seasoned with delicious flavors!
Lay’s also answers the call of the ever growing ‘health-consciousness’ trend in India. It now has 40% less Saturated
Fat, Zero Trans Fats and no added MSG! Frito-Lay potato chips have taken out 40% of unhealthy saturated fats for
youQUICK BRAND FACTSWorld’s largest and favorite snack food brand
Launched in India in 1995
Lay’s comes in variations i.e. Wafers and Stax
Lay’s has 40% less Saturated Fat, Zero Trans Fats and no added MSG
LAY\'S brand potato chips can inspire. Made with 100% pure sunflower oil. all the great taste
you love, not to mention 50% less saturated fat than regular potato chips. And, of course,
The life of a Frito-Lay potato or corn chip is a pretty simple one, and
that's the way we like it. Because we start with farm grown ingredients, the less we do to them, the better they
are.
It all starts in the rich soil of an American farm, like Black Gold Potato, in North Dakota. Black Gold's CEO,
Gregg Halverson, takes great pride in being a third generation farmer and one of Frito-Lay's largest suppliers.
"Our potatoes are specifically grown to be Frito-Lay potato chips," says Gregg. "We have quality controls at
each of our farms to make sure our potatoes are of the highest grade."
"We have quality controls at each of our farms to make sure our potatoes are of the
highest grade " – Gregg Halverson, CEO, Black Gold Potato
Frito-Lay's standards for the quality of the corn and potatoes are among the highest in the food industry, so
farmers like Gregg make sure that our ingredients are planted, grown and harvested with the utmost attention
to detail and quality.
After Gregg's potatoes arrive at a nearby Frito-Lay plant, they're washed, peeled, cut into slices and rinsed to
clear off any excess starch. Next, they're cooked in all-natural oils like sunflower oil and corn oil, then
sprinkled with salt or seasoning to become America’s favorite potato chips. It doesn't take much to make a
simple snack taste great.
Sensible Snacking
Snacking is a fun thing to do, but did you know that it can also be good?
For over 75 years, we've been making our snacks from simple, good ingredients like corn, potatoes and
vegetable oil. And we've always been ahead of the pack when it comes to taking out the ingredients you don't
want (such as trans fats) and putting in more of the good stuff, like whole grains and real fruit.
Our snack-making strategy is pretty simple, really: less of the bad, more of the good. That's why Frito-Lay
snacks taste better and are of the highest quality.
Goodbye Trans Fats
At Frito-Lay, we're proud of the fact that we removed partially hydrogenated oils (PHOs) from our cooking oil
way back in 2003. That means our chips have zero grams of trans fat because we cook them in all-natural oils
such as corn oil and sunflower oil. But what does this mean for you?
It's important to realize that not all fats are created equal. While nearly all foods contain some fat, it's the type
of fats that are key in determining the wholesomeness of particular products.
You can think of the three different types of fats as the Good, the Bad and the Ugly. Good fats are unsaturated
- monounsaturated and polyunsaturated fats. You'll find high levels of these good fats in nuts, fish and
vegetable oils such as corn, soybean, canola, and sunflower oils to name a few. They've been shown to reduce
levels of LDL (bad) cholesterol, and maintain HDL (good) cholesterol. Frito-Lay snack chips and nuts contain
mostly good fats.
Not all fats are created equal.
Saturated fats are what can be called the "bad" fats. They're mainly found in beef, lard and butter, and
excessive amounts will increase the risk of heart disease by raising "bad" cholesterol levels. By switching
to healthier oils, we've dramatically reduced the amount of saturated fats in our products.
Then there's the Ugly – trans fats, most often found in foods like french fries, doughnuts, and crackers. They're
considered the least healthy fats, because they can increase the risk of heart disease by raising "bad"
cholesterol and lowering "good" cholesterol. Frito-Lay snack chips contain zero grams of these "ugly" trans
fats.
You can see the amounts of "good", "bad" and "ugly" fats in all of our products by checking the nutrition label
on the back of the bag.
Less Salt Than You Might Think
You probably think of corn chips and potato chips as salty foods, but the surprising fact is that Frito-Lay
snacks contain less salt than you might think. For instance, a 1 oz serving of Lay's potato chips contains less
than 1/12th of a teaspoon of salt. That's less salt than in a serving of wheat crackers. Our Tostitos SCOOPS!
tortilla chips contain less salt than a serving of fruit yogurt!
It might sound strange, but it's true, because the salt in a Frito-Lay chip is sprinkled on the surface, rather than
baked in, so it is one of the first tastes your tongue detects. This is why Frito-Lay chips taste saltier than some
other common foods.
It's also important to know exactly what salt is, and the role it plays in your body. Sodium chloride, what we
call salt, helps maintain our body's fluid volume and electrolyte balance. The 2005 Dietary Guidelines
recommend that Americans consume no more than 2300 mg of sodium per day (about 1 tsp of salt).
What's the Right Portion?
Snacking is an important part of a healthy diet, whether you want to
lose weight, sustain energy or simply live a better lifestyle. Snacking sensibly can curb your appetite between
meals and keep your energy up during a busy workday, but it can be hard to know exactly how much you're
eating.
Maintaining a balanced diet is tough, and it helps to know exactly what we mean when we describe "serving
sizes" and "portion sizes" on our packaging and information.
Put simply, a "serving size" is a standardized amount of food, specified by the Nutrition Labeling and
Education Act. Some bags may contain multiple servings. A "portion size", on the other hand, is the amount of
food you choose to eat – it could be half a serving, or a couple of servings.
To help you find your way around this sometimes confusing territory, we offer single-serving snack bags, as
well as innovations like our 100 Calorie Mini Bites, which take the guesswork out of portion control.
Try not to eat directly out of the bag. Portion your snacks out, so you know how
much you're having.
As an average, a good portion for a mid-afternoon snack would be 1 oz of Tostitos tortilla chips with a couple
of teaspoons of salsa, or 1 oz of Tostitos with homemade guacamole.
Some more handy tips for sensible snacking include:
-Try not to eat directly out of the bag. Portion your snacks out, so you know how much you're having.
-Store your daytime snacks in the kitchen, rather than at your desk or in your bag. That way you won't be
tempted to munch when you're not really hungry.
-Bring your own afternoon snack to work. You won't end up grabbing an unhealthy option.
-Schedule snacks into your calendar. If you go for too long without eating, you might end up overeating when
you finally find time to eat.
Of course, if you're considering making a serious change to your diet or eating habits, we recommend you
speak to your doctor or dietician first.
What's In Our Snacks
Frito-Lay snacks start with real farm-grown ingredients. You might be surprised at how much good stuff goes
into your favorite snack. Good stuff like potatoes, which naturally contain vitamin C and essential minerals. Or
corn, one of the world's most popular grains, packed with Thiamin, vitamin B6, and Phosphorous – all
necessary for healthy bones, teeth, nerves and muscles.
And it's not just the obvious ingredients. Our all-natural sunflower, corn and soybean oils contain good
polyunsaturated and monounsaturated fats, which help lower total and LDL “bad” cholesterol and maintain
HDL “good” cholesterol levels, which can support a healthy heart. Even salt, when eaten in moderation as part
of a balanced diet, is essential for the body.
Straight Talk on Snacking
Q: Aren’t all fried foods unhealthy?
A: Actually, no. Frying itself isn’t unhealthy—it’s the type of oil in which the frying is done that matters.
Certain oils, such as tropical and partially hydrogenated oils have saturated fats or trans fats, which are
considered “bad fats.” But Frito-Lay chips are fried in healthier oils like corn and sunflower oils, which
contain 80% or more of polyunsaturated and monounsaturated fat—the “good fats.”
Q: Aren’t your chips high in fat?
A: Most of our chips range from 7-10 grams of fat per 1oz. serving, an amount comparable to many other
snack choices. We also offer snacks, like Baked! LAY’S® potato crisps, which have 3.5 grams of fat or less
per serving. The good news about all our chips is that we make them with “good fats”—polyunsaturated and
monounsaturated fats, which have heart health benefits because they can actually lower bad cholesterol, so
long as the total calories consumed do not increase.
Q: Won’t eating chips make me fat?
A: Weight and weight gain always goes back to calories in, calories out. Frito Lay chips (and any food, in
fact) can be a part of a healthy lifestyle but moderation is important. Frito-Lay offers a number of options to
help with portion control, including our multipacks and variety packs, which are an easy way to ensure the
right portion, and fresh-tasting chips every time. And our 100 Calorie Mini Bites offer 100 calorie portions of
some of our most popular brands including DORITOS® and CHEETOS®.
Q: Doesn’t Frito-Lay make junk food?
A: At Frito Lay, we make great-tasting snacks that start with quality, farm-grown ingredients. All Frito-Lay
chips start with real, simple ingredients (corn or potatoes) and are minimally processed. And all of our chips
are cooked in either sunflower, soybean, or corn oil, which support heart health because they have a higher
ratio of good fats to bad fats and 0g trans fat.
Q: Don’t Frito Lay chips have trans fats?
A: Nope. All Frito-Lay chips have 0g trans fat per serving. In fact, we were the first major food company to
remove trans fats from our snack chips starting in 2003.
Q: What’s in your chips, anyway?
A: Our most popular snack chips are based on 3 simple ingredients: potatoes or corn, natural oil, and salt and
have NO preservatives. In our seasoned varieties, seasoning makes up less than 5% of the ingredients in our
chips. Another ingredient fact: all Frito-Lay potato chips are naturally a good source of vitamin C (10% of
your daily value) from the potatoes.
Q: Frito-Lay makes salty snacks…so aren’t they high in sodium?
A: Actually, no. Chips have comparable sodium per serving to many other foods, like a slice of white bread,
crackers, or even cottage cheese. In fact, Frito-Lay chips account for only about 1% of the sodium
consumption in the U.S. Salty snacks taste salty because the salt is on the surface of the chip, not because they
are high in sodium. Other foods like crackers have the salt mixed and baked in so they don’t taste as salty. The
primary source of sodium in the U.S. diet comes from common foods like bread and cheese.
Q: Isn’t snacking just a bad habit?
A: Clearly there is a difference between mindless eating and snacking to curb the appetite between meals.
Snacking can be part of a healthy, balanced lifestyle and offers many benefits. When keeping healthier
ingredients, portion size, and personal calorie needs in mind, snacking can be useful in managing weight and
sustaining energy throughout the day.
Q: What does “organic” have to do with snacks? Does Frito-Lay use any organic ingredients?
A: Organic food options are becoming more widely available, and not just in the produce section. Organic
snacks are made with organic ingredients that have not been treated with pesticides, artificial fertilizers, human
waste or sewer sludge. They are made from all natural (not-synthetic) ingredients, not genetically modified,
and not treated by radiation. Frito-Lay uses certified organic blue corn in our Natural Blue Corn TOSTITOS®
tortilla chips.
Q: I am on a modified diet that restricts salt, fat, and cholesterol. Are my favorite Frito-Lay snacks off
limits?
A: Good news! Frito-Lay offers a lot of different snacking options to address various nutritional
concerns. Go ahead and turn the bag to check the nutrition and ingredients panel! Frito-Lay snacks are
cooked in healthier oils, so they offer the good mono- and polyunsaturated fats that are associated with
lowering bad cholesterol when they replace saturated fats. And all Frito-Lay chips have 0g trans fat per
serving. As far as salt goes, Frito-Lay snacks have less sodium than you might think—a serving of LAY’S®
Classic potato chips have a similar amount of sodium to a slice of bread. So Frito-Lay snacks, enjoyed in
moderation, can be part of any balanced diet.
LAYS, Pepsico india Complaints - No Chips : Just Air > Very
EmbarrassingView all LAYS, Pepsico india complaints
LAYS, Pepsico indiaPosted: 2008-12-10 by Paramjit Singh Send email
No Chips : Just Air > Very EmbarrassingI bought a packet of (Lay's-American Style Cream &Onion) potato chips a few days ago 32g B.No-N214B, MFD:20-Jun-08 and to my surprise when I tried to open it I realized there is nothing in but just air.
I still have the packet in my possesion and it is still filled with air, I want to escalate this matter, cause I went through embarrassment in front of my 5 year son who only likes these chips as a snack.
It is not about Rs.10 packet, it is about the brand Frito Lays, how can such a big company like Lays float products in the market before proper quality check.
They better reimburse me for my embarrassment and improve in quality, I have the packet in my possesion and I will escalate this matter to the highest authority, and there are people out there to help me.
Warm RegardsParamjit Singh
Read comments Add a comment
More LAYS, Pepsico india complaints
LAYS, Pepsico india - NO CHIPS IN PACKET
Comments
413 days ago by Manoj [send email]
Am MANOJ and am doing my B.Com and I seriously love lays chips and is mine all in all favourite and i can leave without breathing but cant survive without eating lays even for one day.The problem which i faced with your MNC is that once when i brought a lays chips and opened it i shock to see only three four pieces in it and i was almost shock to see that how come such a quality brand company be so careless and am so very disgraced that the just three four chips which was present in it was over fried and not in a condition of eating and i just wanted to write a letter regarding this along with that wrapper attached to it.Being a MNC please check to the contents of your pack before packing because a single damaged pack might look like a small mistake to you but its something big problem to us because we people depend on you people with only hope that you provide us the best quality which we require and if there is any disappoints like this then people will surely change their minds are have an bad impression about you.
GOOD NEWS SPREADS VERY SLOW but BAD NEWS SPREADS VERY FAST because such an modern world we are living in.WELCOME TO THE COMPETITION WORLD...
412 days ago by Lavanya Bhagra [send email]
I bought a packet of [magic masala] lay's chips today on the 21st of December 2008 80gms B.NO
N106B, MFD 29TH November 2008, BEST BEFORE FOUR MONTHS FROM MANUFACTURE.
I still have the packet with me and i want to bring this in your notice that the chips in the packet were
totally burnt n were inedible and not worth consumption . The Rs 20 packet was a total waste of money
because the chips were burnt and had to be thrown.I think these chips should be taken of the market or
proper inspection of the quality of the chips should be made in order to satisfy the consumers.
I request the authorities to please take notice of this and to make proper inspection of the chips before
being introduced into the market or you will lose your loyal consumers.
your loyal consumer, lavanya.
404 days ago by Prem Singh Chundawat [send email]
dear sir, I am prem singh (Asstt. Manager purchase)ashoka cinepelx udaipurWe have 3 counter for sale of lays / kurkure etc.each counter sale is 10 box/week, but one month ago your seles boy gave me one month old stok and my boys didnt chek, now thing is that I told to distributer and he refused me to change the matarial, plz. do the need fullPREM
344 days ago by Pallab Chakraborty [send email]
HI PREM,
1ST I APPRECIATE YOUR ATTITUDE THAT U HAVE POST YOUR COMPLAIN.
PREM I APPOLOGIZE OUR MISTAKE, BUT LET ME DESCRIBE.
PREM WE ARE THE LEADING FMCG COMPNY IN THE INDIAAS WELL AS THE WHOLE WORLD.
WE HAVE USED THE LATEST MACHINERY TO PRODUCED THE PRODUCT & DEPUTE HEAVY MAN POWER TO INSPECT THE PRODUCT BEFORE SENDING TO THE MARKET.
WE HAVE PRODUCED LACS OF PACKETS IN A DAY. AND WE ARE 99.9 % SURE THAT REJECTED PRODUCTS DOESN'T GO TO THE MARKET.
bUT THIS IS IMPOSSIBLE TO MAINTAIN 100 % EFFICIENCY.THIS IS UNFORTUNATE BUT THIS IS TRUE.
IF WE R PRODUCED 1 LACS PACKETS IN A DAY @ THE RATE OF 99.9 EFFICIENCY 10 PACKETS ARE GOES TO THE MARKET.
BUT WE HAVE THE BEST CUSTOMER POLICY TO COOPERATE WITH ARE VALUABLE CUSTOMERS. WE HAVE PROVIDE THE FACILITY TO EXCHANGE THE FAULTY PRODUCTS.YOU MAY EXCHANGE YOUR PACKET IN YOUR NEAREST OUTLET. IF THEY DOESN'T CHANGE THAN U HAVE COMPLAIN OUR OFFICE IN OUR IN OUR TOLL FREE NO. OUR CUSTOMER SUPPORT EXECUTIVES ARE AVAILABLE 24/7 AT YOUR SERVICE. WE HAVE TAKE NECCESSARY ACTION TO GIVE U SATISFACTION.
SO PREM BE POSITIVE & PLS PLS PLS COOPERATE US.
COZ "WE SHALL DELIVER BEST PRODUCTS IN THE MARKET" THIS IS OUR POLICY.
WE PROMISE TO YOU & OUR WHOLE CUSTOMERS THAT WE HAVE VERY SERIOUS ABOUT YOUR MONEY & YOUR HEALTH.
SO PLS TAKE AN ANOTHER LAYS & MAKE A PROGRAM TO ENJOY.
WE ARE WITH YOU.
REGARDS.
PALLAB CHAKRABORTYPEPSICO INDIA HOLDING PVT LTDLEAD PLANT MANAGEREASTERN REGION
SO PREM BE POSIIVE
320 days ago by Tarun Agarwal [send email]
For Target achievement & Growth, a Sales officer, Area Sales Manager & Regional manager of PepsiCo(Fritolay) had given verbal proposal of CFA for their company Pepsico India (Fritolay Division) in Upper Assam.They told me to built a godown about 15000sq.feet immediately so they can start their CFA operation. I thought, I got an opportunity to work for PepsiCo and subsequently taken loan from bank about 50, 00000.00 and started immediately construction for huge godown for PepsiCo. Everything went ok till the construction over, and also in an official meeting in Guwahati (Assam)
Mr. Amitabh Baisakh (RM east) along with entire team members & distributors announced the opening of CFA in Upper Assam shortly. They congrats me for my selection as CFA For PepsiCo.Till Today It’s three years passed, nothing has happened, I have cheated A MNC Pepsico India(Fritolay- East). Please help..Please Help...Please Help.Tarun Agarwal09435091691
267 days ago by Suvro Banerjee [send email]
Hi, I am a engineering student of NIT, durgapur, residing in Kolkata. Last day i bought a pepsi cold drinks bottle from a shop near AG BLOCK in Salt Lake, kolkata-64. I found that there was a typical fungal growth in side the bottle floating on the liquid. I reported to nearby "suppliers of your company"(pepsico) who instead of ownig up the problem showed quite STUPID, IDIOTIC reason for the case. I want to know that this is WHAT U MEAN BY CUSTOMER CARE?????? Finally are your going to do something about this issue so that common people like me of this country get the justice that they deserve. Being a responsible citizen I am waiting for an answer.
170 days ago by Shriratan Sadai [send email]
Dear Sir, I want to take the distributorship of lays in the kolkata i would like to know your criteria for taking the distributorship in kolkata . I would request you to send me the criteria and if needed you can contact me at 9830611312.
thanking you
your's faithfully
(SHRIRATAN SADANI)
164 days ago by Philip [send email]
hi, i bought a packet of lays american cream and onion. and there was only air in the packet u guys need to increase the amount in a packet ...very cheap never want it for all time fav cause of the quantity quality i have no words its fantastic.
164 days ago by Tapobrata Chatterjee [send email]
Please let me know the address details of the Pepsico India Holdings contact for corporate purchase at kolkata at the earliest.
Thanks & Regards
95 days ago by Pragjyoti Cinema [send email]
THAT SIR WE HAVEA CINEMA HOUSE AT MALIGOAN GUWAHATI AND ARE GETTING LAYS AND KURKUREE PRODUCTS FROM THE DEALER OF THE AREA AT MALIGOAN NAMED PURNIMA MKTG FOR SELLING AT OUR CANTEEN AND OUR MONTHLY REQUIREMENTS IS AROUND 200 CARTOONS.NOW SIR WE ARE TO COMPALIN THAT WE ARE ALWAYS BEEN NEGLECTED BY THIS DEALER AS WE HAVE LEARNT THAT SINCE WE ARE FALL IN INSTUTIONAL CATEGORY THEY THOUGH ARE LIFITING QNTY FROM THE DISTRIBUTOR AGAINST INSTITUTIONAL SALES BUT ARE MARKETTING IT TO THE COMMERICAL REATILERS ETC.SECONDLY WE ARE NOT BEEN GIVEN ANY SCEHEMS OFFERED BY THE COMPANY
NEITHER ANY INSTITUTIONAL DISCOUNT AND ARE FORCED TO PAY THE COMMERICAL RATESWE TALKED TO LAXMI AGENCY THE SOLE DISTRIBUTOR OF ASSAM BUT HE TOO IS SILENT ON THE ISSUE PLEASE LOOK INTO IT AND SUGEST
29 days ago by Sk [send email]
Where do I send my entry for the Lays Dillicious Contest (Flavour and Slogan) ?No where has any one given any information as to where to send the contest information.Please get back to me as soon as possible.Thanks.
20 days ago by Ramesh [send email]
respected sir i m from sonipat.apka distributor GOPAL KRISHAN AND COMPANY.GALAT BOLTA HAI GALI DETA HAI.PATA NAHI COMPANY AISE DISTRIBUTOR KYU RAKHTI HAI GUN LE KAR GHUMTA HAI DARATA HAIN RETAILERS KO PLS IS PAR KOI ACTION LIJIYA.AUR MERI REQUEST HAI MERI IN SHOW MAT KIJIYE.
16 days ago by Vaibhav Wagh [send email]
I need the details of lay's sale in differnt market segmentation.
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Frito-Lay Inc. has a very profitable dip product line. This is not only a great deal now, but also has shown tremendous
sales growth over the past few years. In 1981 their sales reached 30 million dollars, with the sales figures almost
tripling by 1985, reaching 87 million dollars. However, this success brings the corporation into a very unique situation
as well as bringing up a very good question of "how to develop this further?" Their options boil down to two different
viewpoints. The first is the "chip dip" category or secondly, the newer and edgier "vegetable dip" category. The
company in 1986 has also introduced sour cream-based French onion dip, which has an annual sales forecast of 10
million dollars and it is a bridge between the chip and the vegetable dip markets.
Nationally, 80 percent ($620 million) of the total dip sales, which is about 775 million dollars, are accounted for in
supermarket sales. About 55% of the total sales by supermarkets require refrigeration, and their retail prices were
typically in the $0.07 to $0.15/oz. range. In this market the major competitors are Kraft, Borden, regional dairies and
store brands. The other 45% of the sales by supermarkets is considered to be shelf stable goods and these are
typically sold for an average price of $0.09 to $0.20/oz. The major producers of these products are Frito-Lay and also
some regional chip manufacturers.
Sour cream-based dips are the most popular flavor, and it accounts for about half of all total dip sales in the US. But
the wholesale price of these products is only $0.09/oz. The second most popular segment of the market, the cheese-
based dips, are taking up about 25 percent of the total market. While cream cheese-based dips are the third most
popular and they take up about 15 percent of the total sales. Dips are most frequently used with salty snacks, in fact,
67 percent of all dip sales are linked to salty snack usage. On the other hand, only 33 percent of total dip sales are
linked to vegetable usage. The growth in the popularity of Mexican foods in recent years has created a huge increase
in the size of the dip market.
As big as the market is for dips, there is an increase in market dip substitutes. About 20 percent of the dips used in
the US are homemade; nearly as many consumers use refrigerated salad dressings for dips. It is estimated that
about 35 percent of refrigerated salads sold in the states is used as dips. It is also estimated that annual sales of the
vegetable dip market are about 67 million dollars and the market is growing about 18 percent annually (this trend has
been consistent since 1978).
Competition in the dip market is increasing very aggressively, especially in 1984-85. Not only the existing competitors
releasing new products, but also many well financed companies, such as Campbell Soup, introduced their dip lines.
This data indicated increasing competitors and that leads to increasing advertising expenses, in 1985 the market's
total advertising expense was 58 million dollars which was up 25 percent from the year before.
Frito-Lay, Inc. is a division of PepsiCo Inc. a New York based diversified consumer goods and services firm with
annual sales over 8 billion dollars in 1985. Divisions of the parent company also include Pizza Hut, Taco Bell, Pepsi
Cola Bottling, Kentucky Fried Chicken, PepsiCo Foods International. Frito-Lay is a nationally recognized leader in the
manufacturing and marketing of salty snack foods and their net sales approached 3 billion dollars in 1985.
Frito-Lay's introduced its' first two dips in the 1950's and they had only three types of dips until 1983. However, during
1983 and '84 many other types of dips were added to their product line, due to the increasing popularity of dips. Prior
to 1983 dips line was viewed as a non-promoted profit producer, but that quickly changed with the introduction of
cheese dips and other very popular products.
Dollar Sales of Frito-Lay'sâ Dip (in Millions of Dollars)
Year Mexican Dips($) Cheese Dips($) Sour Cream Dip ($) Total Dips($)
1986(forecast) 41 48 10 99
1985 39 48 _ 87
1984 40 55 _ 95
1983 38 5 _ 43
1982 35 _ _ 35
1981 30 _ _ 30
Frito-Lay distributes its products through 350,000 outlets nationwide. In 1985 34,000 outlets were supermarkets,
where majority of the dips were sold. 47,000 other outlets were convenience stores, and 20,000 were nonfood outlets
and the remainder 249,000 outlets were small grocery, liquor stores and service stations.
SWOT Analysis
Frito-Lay is a manufacturer and marketer of salty snack foods, which is nationally recognized. The net sales of Frito-
Lay in 1985 approached $3 billion. The dip business is part of the Frito-Lay Company. There were three dips sold by
the company until 1983. During 1983 and 1984, there were a number of cheese-based dips introduced by the
company. All the dips were displayed in the salty snack section of supermarkets, where 80 percent of dip sales are
made.
There are many internal factors of the company, which affect their strengths and weaknesses. The company does
have a well-experienced marketing department but they have a weak leader. A well developed line of salty snack
foods are offered by the company, which can help the sales of the dips. The dips are displayed besides the salty
snack food section. Whenever a person buys some chips they will also be heavily inclined to buy a dip to go with it.
This can helps to increase sales of the dip. The company does try to offer more choice of dips but is still not enough.
People need different taste and more choice. People are loyal but still want to try new tastes sometimes. Frito-Lay
recognizes the up and coming health consciousness of Americans and is considering the expansion into the
vegetable dip niche.
The Frito-Lay Company has national awareness and has distribution center across the U.S. The company has
350,000 outlets that distribute the products nationally. They have many kinds of distributors throughout the states but
the majority of Frito-Lay dips are sold through supermarkets. There are four geographical zones that organize the
distribution system and cover the entire United States. Thirty-three percent of salty snack food tonnage sold in the
United States was captured by Frito-Lay. This will also help a brand recognizing by the customers. Cheese dip was
introduced and it has a good initial penetration of the market. This can also shows that a different kind of dip will catch
people's eye and get interest in buying it. The Cheese dip sales have tapered off because the novelty of shelf-stable
cheese dips has passed.
The company is organized around four geographical zones and each zone contains distribution centers to provide
inventory for the sales force. During an average day, the sales force makes 400,000 sales and delivery calls. Each
salesperson has their own route for selling the company products. Frito-Lay uses a "front-door store" delivery system
that is suited the 270,000 non-chain outlets. The supermarkets, which are chain-store accounts, were not favored by
the front-door store delivery system. A Frito-Lay region or division manager always required participating. This is
necessary because the chain-store buyers responsible for the outlets in the chain also approve in-store
merchandising plans as well.
Frito-Lay has the opportunity to capitalize on their present commanding position in the dip market by expanding their
product line to include vegetable dips that will complement their successful cheese and picante (Mexican) dip lines.
With the correct launch and positioning, Frito-Lay, Inc. could penetrate and stake a claim to a large and undefined,
yet extremely viable, vegetable dip market. This is a market which does not have a major competitor in a strong
competitive position, there isn't a shelf-stable sour cream-based dip offered by anyone (Frito-Lay has one ready to be
released), and consumers are becoming more concerned over the content of the food they eat and buying enough
"substitute dip" (salad dressing) to support growth in this market at an astonishing 18% compounded rate per annum.
This growth rate has been sustained since 1978. The vegetable dip market is estimated at $23 million in sales per
year Further, sour cream dips are the most popular flavor, accounting for about 50% of dip sales in the salty snack
dip segment of the market. Combining this prior information with the additional fact that after cost analysis, the gross
margin on the sour cream dip will be a healthy 45% and you have all the makings of a cash cow product line. Now if
Frito-Lay can muster the resources and intestinal fortitude, they could really start working on the next billion in sales
for the company in '87.
Naturally, in a free market, there are always risks that are associated with any undertaking. The company faces
several threats from the market that must be objectively weighed when conducting the planning for expansion into a
new market segment. Principally, as the new sour cream dip will be positioned in a different part of the supermarket,
away from the rest of the Frito-Lay salty snack food products, the normal front-door delivery system will need to be
changed.
New contacts with the produce managers in each store will have to be developed so as to get proper positioning and
exposure for this new dip. The company sales force will need additional training and marketing expenditure at the
supermarket level to capture interest and assist in the placing of the new product. If the stores can't or won't make
space in their produce sections, then this venture faces the possibility of a very limited lifespan. Perhaps the
marketing department could develop new display racks that would attach to the top of produce bins and offer
supermarkets additional marketing space without sacrificing floor space.
Additionally, as the company is proposing to launch a new product line, with only one selection so far and it will be
positioned in the supermarket far away from the rest of our products, the risk that the product won't be noticed and/or
accepted by the consumer is higher than normal for a new introduction. Perhaps if another dip selection was
developed and offered along with this line, then consumers would be exposed to more shelf space of Frito-Lay'sâ
product and be more inclined to trust the brand name and try it. It is recommended that the French onion dip line be
placed with the sour cream line to address the demand and growth trends of the market.
Concurrently, as mentioned, this product will be in a different section of the supermarket and thus new advertising
must be developed and broadcast to the consuming public to inform them where to look in their neighborhood market
to find this wonderful new dip to use with their healthy vegetable snacks.
Plan of Action
In late 1986, Frito Lay, Inc wants to complete their planning review for the line of dips sold. There are two different
viewpoints expressed, a "chip dip" category and a "vegetable dip" category. In plan of action, we will analyze these
two categories in detail.
For analyzing two viewpoints, we will go back to early 1986 and assume that Frito Lay, Inc. only did one marketing
action. What would have happened if Frito Lay, Inc. increased its advertising and promotion expenses to increase
cheese dip sales (whose trend of sales is going down) without marketing sour cream dips? What would happen if it
markets sour cream dips, which will increase its selling expenses, without increasing advertising and promotion
expenses for cheese dips? What level of sales does Frito Lay, Inc. have to achieve to maintain its $ 99,000,000 total
sales goal? With this information, we will know what product category Frito Lay, Inc. must emphasize in its' 1987
sales planning because, in 1986, the company has already increased its advertising and promotion expenses and
also marketed its new shelf-stable sour cream dip.
We also need to make an assumption about retail price, trend of sales, gross margin and trend of expenses. We
assume that retail price of shelf stable dip is $ 0.16 per ounce for every kind. This assumption is based on the
average retail price for shelf stable dip, which ranges from $ 0.13 - $ 0.20 per ounce.
The amount of general administrative overhead expense, selling expense and freight expense stays the same in
1985 and 1986. The amount of consumer advertising expenses and consumer and trade promotion expenses will
vary. It depends on what strategy is applied. We also assume that COGS is the only variable cost. The company
maintains its gross margin at the same rate in 1985 and 1986, which about 49% for Mexican dip, 45% for Cheese dip
and 45% for Sour cream dip. The last assumption is that the sales trend of chip dip is declining.
Based on the amount of sales in 1984, which was $ 55 million and in 1985, which was $ 48 million, the trend of sales
of chip dip declined about 12.72%. The company increases advertising expenses ($ 1,023,000) and promotion
expenses ($ 594,110) due to increasing sales. The increasing amount of expenses ($ 1,617,110) will be divided
proportionally between Cheese dips and Mexican dips. We will try to calculate if the company increases those
expenses and doesn't market new product (sour cream dip) in 1986. In 1986, the company plans to achieve $ 99
million in total sales. Enclosure 1 will show the calculation of this assumption.
The company launches its' new product, shelf-stable sour cream dip, that will increase selling expenses to 25% of
total sales. The amount of other fixed cost is staying the same, but without increasing of advertising and promotion
expenses for cheese dips, trend of cheese dips sales is decreasing 12.72% from its prior year sales. Enclosure 2 will
show the calculation of the assumption that Frito Lay, Inc. markets the sour cream dip and doesn't increase
advertising and promotion expenses for cheese dips.
Outcomes
Enclosure 1 shows that the company has to increase sales $ 16,146,763.64 to reach its $ 99 million in total sales. It is
very hard for it to do because the company is facing a fully saturated market for cheese dips. Gross margin from this
action is about 46%, which is good for the company, but advertising and promotion expenses are almost reached the
budget line. This will prohibit the company from increasing its' advertising and promotion effort in 1987, whereas in
fact, the company must to do this to increase its sales in the full market.
In enclosure 2, the company only has to increase sales $ 15,900,000 to reach its
$ 99 million total sales and $ 12,603,111 to reach its break-even point. This is much easier because the company
only has to get a 5.73% market share to reach BEP. The market for this product (shelf-stable sour cream dip) is not
near being full yet and there are no competitors that have marketed self-stable sour cream dips, which means that a
golden opportunity exists for the company. Though its unit gross margin is little bit lower than cheese dips and its'
total gross margin is almost the same, it is the overall potential of the vegetable dip market that makes this option an
outstanding one.
Based on the analysis of SWOT, enclosure 1 and enclosure 2, we conclude that in 1987 sales planning, Frito Lay,
Inc. should elect to extend its sales effort into the sour cream vegetable dip market.
Business Standard
June 06, 2007
ITC, Pepsico battle it out in wafers market
V B Kunal Singh, 45, is in the middle of the crossfire between packaged foods majors Pepsico and ITC. But this time the small-time snacks seller in Mumbai, much like others in his trade, is enjoying himself. Stocking flavoured potato wafer packs is no longer a wafer-thin business. Singh will not talk about exact margins, but he admits that Bingo the latest entrant has offered smaller shops like his, a margin that is 4-5 per cent higher than competitor Frito Lay’s.
As tobacco-to-hotels major, ITC, set its eyes on this segment a couple of months back, with the launch of Bingo, this category is sizzling. Across the country the action is visible. In places like Bangalore, promotional events like games and competitions based on Bingo have become a regular feature at large malls like Garuda and Forum on weekends. The brand also tied-up with the Aerosmith rock concert that recently happened in the city. Last week, Pepsico’s snack foods company, Frito Lay, announced a major branding initiative for its Kurkure brand. About 35 AC BEST buses in Mumbai, followed by the Metro in Kolkata would be branded by Kurkure.
The action is also visible at retail points. Small retailers, almost all of whom also sell ITC cigarettes, claimed they had been promised a premium if Bingo display was better. With its sole objective of deep distribution, ITC introduced mega-size wafer trolleys outside most mom-and-pop outlets. Lay’s, the top selling brand reacted with its own version of trolleys parked next to Bingo’s display. Of course there were some places where ITC Bingo blocked out its competition. Across the country, Bingo has laid claim to the large format outlets by tying-up with big retailers like Future Group’s Food Bazaar.
But not all organised retailers believe in monopoly. At C3, Kolkata’s second largest retailer, Kurkure and Lays dominate the branded snack market. The retailer said they would rather offer choice to consumers. But there are genuine stock issues for Frito Lay, at least in some parts of Mumbai. In south Mumbai, a shop owner said, “We sell both Lays and Bingo. But we haven’t received supplies of Lays, which is in much demand, for the past one month.” Similarly, the owner of a distribution agency for Lays said there was a supply issue. The company executives could not be reached for comment.
According to ITC Foods executives, the company has launched an advertising blitzkrieg across the country to create awareness among consumers. “The brand name Bingo signifies victory. We have employed various strategies to successfully create an identity in the market in a short span of time,” said ITC Foods Chief Executive Ravi Naware.
Frito Lay is reacting with consumer promotions. As a part of its Chai Time Achievers campaign, over the next few months the company will run a campaign where consumers can send in recipes using Kurkure, of which 25 winners would be selected.
These families then would be featured on 1 million packs each before October 2007. The contest is being promoted through a television, radio and outdoor campaign, as well as interactive display units at the point of purchase.
ITC claims that it has done its homework well. It spent close to two years for developing Bingo. The entry was prompted by the fact that there are few players in this segment. “We found that there was only one organised large player at the national level in the packed snacks segment apart from some regional players. There is a big opportunity for us,” says
an ITC executive. He adds quickly that the market for the packed-snack-on-the-go segment in India is around Rs 2,000 crore and ITC is looking at grabbing a 50 per cent share of the market at the earliest. “We are offering a wide range to ensure that the consumer is not restricted to a monotonous taste,” adds Naware. He adds that Bingo has also got an interesting range in the pipeline.
But as of now, it’s still early days to say whether Bingo will emerge victorious. Foodworld representatives in Bangalore admit that Bingo has emerged as a “hot selling” snack. “It is being replenished on a daily basis,” a Foodworld representative said. “We are replenishing the stock every day in all metros and cities with population in excess of 10 lakh,” Naware adds. But in metros like Kolkata, consumers have not yet switched over from Lays and Kurkure. Smaller outlets in Kolkata confirmed that sales of Lays or Kurkure had not dipped. “Frito Lay is still cashing in on the popularity and brand loyalty that it managed to establish with consumers over the years. Although consumers want to try Bingo, Lays or Kurkure have not been replaced.”
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PR Newswire 8 hrs ago Comment
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New York Times Feb 05 Comment
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New York Times Feb 03 Comment
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PepsiCo Debuts Energy-Efficient, HFC-Free Cooler at Super Bowl
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One Outrageously Cheap Stock
Motley Fool Jan 29 Comment
One name worth buying today.
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PepsiCo Inc. (NYSE:PEP) is a global manufacturer, distributor, and marketer of food and beverages, owning many well-known brands including Pepsi, Frito-Lay, Tropicana, Gatorade, and Quaker Oats.[1] PepsiCo operates in over 200 countries, with its largest markets in North America and the United Kingdom.[2]
Unlike its major competitor, the Coca-Cola Company (KO), the majority of PepsiCo's revenues do not come from carbonated soft drinks.[3] In fact, beverages account for less than 50% of total revenue.[3] Additionally, over 60% of PepsiCo's beverage sales come from its key noncarbonated brands like Gatorade and Tropicana.[4] PepsiCo's diverse portfolio can mitigate the impact of poor conditions in any one of its markets. Strong demand growth in
international markets -- the company serves 86% of the world's population and international sales account for 48% of revenue -- is helping to offset a sluggish domestic market and provided the company with opportunities for continued expansion.[5] [6]
PepsiCo is highly exposed to raw materials costs. Prices for the most important input materials, aluminum, PET plastic, corn, sugar, and juice concentrates fluctuate widely. For example, aluminum prices have fallen more than 60% from their 2008 highs of $1.50/pound to less than $0.65/pound.[7] PepsiCo should benefit from lower input prices after the collapse of the commodities super spike of 2008.
On April 20, 2009, PepsiCo made an offer to acquire its two largest bottlers, Pepsi Bottling Group (PBG) and Whitman (PAS), for $6 billion in a combined cash and stock deal. The deal was turned down, forcing PepsiCo to make a sweetened $7.8 billion offer on August 4, 2009. PepsiCo hopes to streamline manufacturing and distribution through the acquisitions, allowing it to bring new products to market more quickly and efficiently. The company expects to gain full control of 80% of its North American market and increase pre-tax profit by $300 million, increasing eps by $.15.[8] The deal is expected to close in late 2009 or early 2010, adding $4 billion in debt to PepsiCo's balance sheet. According to PepsiCo CEO Indra Nooyi, the acquisition is necessary to consolidate profit as there is not enough total profit in the North American beverage industry to support investments in several different companies. [9] In early January 2010, PepsiCo said that the acquisition will be completed by the end of Q1 2010.[10]
Company Overview
PEP Revenues by Segment[11]
PepsiCo is the largest snack and non-alcoholic drink producer in the United States, with 39% and 25% of the respective market shares.[11] Although the carbonated soft drink market in the US has gradually declined since the mid-2000s, PepsiCo has been able to grow revenues and net income through product diversification and international expansion. In 2008, the company posted revenues of $43.3 billion, a 9.6% increase from 2007; net income fell by 9% to $5.1 billion.[12] The increase in revenues was primarily driven by higher sales volumes in the key European and Asian markets as well as company wide price increases.[13] The fall in net income was attributable to two reasons. First, PepsiCo recognized a $346 million mark-to-market loss on derivatives used to hedge its commodity exposure.[14] Next, the company incurred restructuring costs of $543 million in relation to its Productivity for Growth program. [15] PepsiCo expects to record another $30-60 million charge in 2009 to complete the program, which will close six plants in an effort to streamline PepsiCo's global supply chain.[15]
← 2.1 PepsiCo Must Survive a US Slowdown While Capturing International Growth
← 2.2 Commodity Costs are Pressuring Margins
2.2.1 Pepsi Must Face a Declining Demand for Carbonated Soft Drinks
2.2.2 The Dollar Affects International Performance
3 Competition
← 3.1 Beverages
← 3.2 Snacks and Convenient Foods
← 3.3 Coke vs. Pepsi
3.3.1 Global Footprint
3.3.2 Diversified Product Offering
4 References
In the first quarter of 2009, PepsiCo posted revenues of $8.263 billion, a 1% decrease from Q1 2008 figures; net income fell less than 1% to $1.135 billion.[16] Although net pricing across PepsiCo's product line increased by 7% during the quarter, the company was negatively impacted by a 7% foreign exchange loss due to the strengthening US dollar, as well as a 2% net decrease in sales volume.[17]
Q2 2009
In the second quarter of 2009, PepsiCo posted revenues of $10.592 billion, a 3% decrease from Q2 2008 figures; net income fell less than 1% to $1.66 billion.[18] PepsiCo's volumes remained roughly constant between the quarters, with snack gaining 1% and beverages losing 1%. The decrease in net revenues was due to a weakening of the company's US beverage operations, which decreased by 9%, in addition to the strengthening dollar, which adversely affected revenues by 8.5%. Ignoring these changes, revenues would have grown by 5.5%, driven by gains in the the Latin America Foods and Asia/Middle East/Africa divisions. Net income remained roughly constant as input costs fell in line with net revenues. Ignoring currency fluctuations, Earnings Per Share (EPS) would have grown by 8%.[18]
In the third quarter of 2009, PepsiCo had revenues of $11.08 billion, a 1.5% decrease from Q3 2008; net income increased 12% to $2.23 billion.[19] The increasing value of the US Dollar negatively affected net income by 7% and the company had $9 million in costs associated with its merger with PBG and PAS, its two largest bottlers. [20] Worldwide, beverage volume increased 0.5% while snack volume increased 2%. Frito-Lay North America, the largest division of PepsiCo, grew net revenue by 5% and increased volume by 3%.[21] Through the first three quarters of 2009, Frito-Lay was the fastest growing consumer goods company in North America.[22] The second largest division, PepsiCo Americas Beverages, saw net revenues decline by 9% and total volume decline of 6%.[23] Both Gatorade and Aquafina had double-digit volume declines; discussing Gatorade, executives attribute the decline to casual consumers' budget worries and insist that the core consumer, athletes, are still buying the brand.[24] In Latin America and Europe, net revenue declined 10% and 2% respectively, driven primarily by foreign currency weakness compared to the US Dollar.[25]
Bottlers
*Note - Pepsi's acquisition of Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) is expected to be completed in the 4Q2009 or 1Q2010
PepsiCo's beverage division manufactures concentrated syrup forms for all of Pepsi's beverage brands. PEP sells these concentrates to bottlers for production, packaging, and distribution of the final products. PepsiCo grants bottlers the use of Pepsi trademarks and other brand rights within certain geographic regions.
In August 2009, Pepsi made a $7 billion offer to acquire Pepsi Bottling Group (PBG) and PepsiAmericas (PAS). As the US carbonated beverage market shrinks - from 60% of all nonalcoholic beverages in 1999 to 35% in 2009 - PepsiCo hopes to consolidate the earnings of the three companies for shareholders.[8] Additionally, PepsiCo believes the acquisitions will streamline company-wide distribution through economies of scales.
Three companies distribute 60% of PepsiCo's North American beverage volume:[26]
The Pepsi Bottling Group (PBG) is the largest of PepsiCo's bottlers. PepsiCo has a 33% stake in Pepsi
Bottling Group (PBG), and claims its share of income under the equity method of accounting.[27]
PepsiAmericas (PAS) is the second-largest bottler in the Pepsi system. PepsiCo has a 43% stake in
PepsiAmericas (PAS), and claims its share of income under the equity method of accounting.[28]
Pepsi Bottling Ventures is the third-largest domestic bottling company within the Pepsi system. The
company was formed in 1999 when five of Pepsi’s bottling companies consolidated to form PBV.
Operating Segments
PepsiCo operates in six divisions:
Frito-Lay North America (29% of Revenue, 43% of Operating Income)[29] manufactures, markets and
sells branded snacks. Popular products include Lay's Potato Chips, Doritos Tortilla Chips, Cheetos, Rold Gold
Pretzels, and SunChips.[1]
← Quaker Foods North America (4% of Revenue, 8% of Operating Income)[29] manufactures, markets and
sells cereals, rice, pasta and other branded products. Popular products include Quaker Oatmeal, Aunt Jemima
mixes and syrups, Cap n' Crunch cereal, Rice-A-Roni, and Life cereal.[1]
← Latin America Foods (14% of Revenue, 13% of Operating Income)[29] manufactures, markets and sells a
number of leading salty and sweet snack brands. Popular products include Gamesa, Doritos, Cheetos, and
Ruffles.[3]
← PepsiCo Americas Beverages (25% of Revenue, 29% of Operating Income)[29] manufactures, markets
and sells beverage concentrates, fountain syrups and finished goods, under various beverage brands. Popular
products include Pepsi, Mountain Dew, Gatorade, Tropicana, and Izze.[3]
← United Kingdom & Europe (15% of Revenue, 10% of Operating Income)[29] manufactures, markets and
sells a number of leading salty and sweet snack brands. Popular products include Lay's, Walker's, Doritos, and
Cheetos.[3]
← Middle East, Africa, and Asia (13% of Revenue, 8% of Operating Income)[29] manufactures, markets and
sells a number of leading salty and sweet snack brands. Popular products include Lay's, Smith's, Doritos, and
Cheetos.[30]
Trends & Forces
PepsiCo Must Survive a US Slowdown While Capturing International Growth
Soaring food and energy prices[31], the housing slump[32] and a weakening job market[33] are putting the breaks on consumer spending in North America, even in the typically recession proof drinks and snacks market.
Emerging markets such as China, India, Eastern Europe and Latin America present strong growth opportunities for Pepsico. In fact, rapid volume growth in these emerging markets have offset the worst of the damage in the company's core domestic market over the course of 2008. Pepsico has sought to expand its presence is fast growing emerging markets through several acquisitions. In Feburary, 2007, Pepsico offered to purchase Lucky snacks of Brazil in an effort to expand its foot print in South America and the attractive Brazilian market. Pepsi also followed it's June, 2007 acquisition of Ukrainian juice maker Sandora with the $1.4B purchase of 75% of Russian juice maker Lebedyansky to tap into fast growing eastern European and Russian markets[34]. PepsiCo plans to continue its expansion into Russian markets with a partnership with Pepsi Bottling Group (PBG) to invest $1 billion in the country by 2012.[18] The company's most recent efforts involve the distribution and installation of coolers throughout India. By tying the increased volume of cooler space to PepsiCo products, the company hopes to grow revenues in this emerging market.
PepsiCo's profitability can be affected directly and indirectly by the costs of various production inputs. PEP is responsible for purchasing the raw materials used to make its products in all its markets and also acts as an agent for the purchase of its bottlers' raw materials. Some of the raw materials used by PEP include grains such as corn, wheat flour, oats and rice; fruit and vegetable products like oranges, potatoes, and juice concentrates; sugar; and vegetable and essential oils. For example, aluminum prices have fallen more than 60% from their 2008 highs of $1.50/pound to less than $0.65/pound.[7] Changes in the prices of such raw materials could impact total production costs and the company’s profit margins. Changes in bottlers' production input costs can also indirectly impact PEP's profits. If a bottler's raw materials become more expensive, it might pass on the increase to customers, which could lead to a loss of market share as customers switch to more affordable alternatives. The primary raw materials used by bottlers are high fructose corn syrup, which is used as a sweetener, aluminum, used to make cans, and PET Resin, used for plastic bottles.
In an effort to insulate itself from market forces, PepsiCo has invested $29.3 million in five farms in China, making it one of the country's largest agricultural companies.[36] The farms primarily produce potatoes for the company's potato chip brands and by 2005, the company was the largest private potato grower in the country.[37] In her 2008 visit to China, CEO Indra Nooyi said that the company is planning to invest $1 billion in China by 2012.ref>PepsiCo to Set Up Five Farms in China, Tradingmarkets.com, 1/27/2010</ref>
Pepsi Must Face a Declining Demand for Carbonated Soft Drinks
Consumer demand for CSD has been negatively affected by concerns about health and wellness. Since 1999, carbonated soft drinks have dropped from 60% to 35% of total US beverage volume.[8] Rising health and wellness concerns can be attributed to increasing concern for obesity as well as education campaigns on the part of the FDA as well as non-profit groups. Public campaigns to ban sales of soft drinks and fatty snacks in schools have also negatively impacted demand for sugary sodas. These factors have driven a shift in consumption away from CSD to healthier alternatives, such as tea, juices, and water. Even within the CSD segment, consumers have been moving away from the sugared drinks, opting instead for diet beverages, which do not generally contain any sugar or calories. In response to this shift in consumer demand, PEP has increased its development of both diet CSD and non-CSD beverages. With its popular Tropicana and Gatorade brands, PepsiCo is much better situated than Coca-Cola Company (KO) to react to these changing trends.
The Dollar Affects International Performance Changes in the strength of the dollar compared to foreign currency could impact the company by decreasing both costs and revenue in dollars. As the strength of the dollar increases, all sales made in foreign currency end up being worth less because the amount of US dollars the company gets per sale decreases. On the other hand the cost of
foreign inputs (food and other commodities that go into PepsiCo products) sold in foreign currencies would decrease with the strengthening dollar. Since over half of PepsiCo's sales are in international markets, the increasing value of the dollar could be a significant factor driving revenues down overseas. Specifically the company primarily deals with the British Pound, Euro, Australian dollar, and Canadian dollar. Between July and December 2008, the dollar regained nearly all its 2007 losses against foreign currencies, and has continued this trend through 2009. [18]
Competition
2008 U.S. non-alcoholic beverage market by volume[38]
Beverages
In the domestic beverage market, the Coca-Cola Company (KO) is PepsiCo's main competitor. In 2008, Coca-Cola had a 23% share of the U.S. non-alcoholic beverage volume, while PEP held a 25% share. Coca-Cola Company (KO) has a higher worldwide share of carbonated soda beverages, but PepsiCo has a more diverse product line and leads the industry in non-carbonated soft drink innovations.[39] PepsiCo's revenues are also substantially higher than Coca-Cola's, due to PepsiCo's snack and convenient foods business, a market in which KO does not participate. PepsiCo's presence in the snack and convenient food industries, as well as its industry-leading innovations in the non-carbonated soft drink segment, gives it a somewhat more balanced portfolio than Coca-Cola and provides the company with some protection against further declining demand for CSD.
PepsiCo's Frito-Lay and Quaker brands compete in various parts of the larger food industry. Its snack foods manufactured by the Frito-Lay segment hold a commanding share of the U.S. market, accounting for around 39% of domestic snack food sales in 2006. PepsiCo's main competitor in the food market overall is Kraft Foods (KFT). Kraft's products include snacks, cheese, diary, and cereal products, which puts it in competition both with Frito-Lay and Quaker products. Much like the Coca-Cola Company (KO), Kraft does not participate in both the food and soft drink markets, giving PEP the advantage of having a more diverse offering of products.
Coke vs. Pepsi
For decades now, Coke and Pepsi have battled for our hearts and minds... but what about our capital? Which company will add the best flavor to your investment portfolio? Although both companies share powerful brand names and global franchises, there are two important distinctions between Pepsico and Coca-Cola that any investor should consider before choosing between these comestible titans:
Global Footprint
When it comes to international presence, Coca-Cola easily trumps Pepsico. In 2008, Coca-Cola generated around 75% of its revenue overseas compared to 48% of revenue for Pepsico.[40][41] Coca-Cola's impressive global footprint puts it in a better position to benefit from strong growth across the globe, particularly in the developing world. Furthermore, because Coke generates so much of its revenue abroad, it stands to benefit greatly from the continuing weakening of the dollar as sales denominated in foreign currencies are suddenly worth more dollars back home. At the same time, Pepsico's heavy dependence on North America makes it much more susceptible to a slowing US economy.
Diversified Product Offering
Another important distinction between the two companies is their product offering. While KO is essentially a one-product company that focuses on beverages, Pepsico has a much broader product base that includes beverages, foods and snacks. Coca-Cola's heavy dependence on beverages, particularly carbonated beverages, makes it more susceptible than Pepsico to a growing aversion to soda which is perceived as fattening and unhealthy. On the other hand, Pepsico's extensive portfolio of beverages, foods and snacks puts it in a better position from the trend to healthier eating.
References
1. ↑ 1.0 1.1 1.2 PEP 2008 10-K pg. 2
2. ↑ PEP 2008 10-K pg. 1
3. ↑ 3.0 3.1 3.2 3.3 3.4 PEP 2008 10-K pg. 3
4. ↑ Pepsi's bottler bid: Changing the channel again.
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