PepsiCo Is Trying to Push Healthy Products but Customers Don’t Want Them
The market may be flooded with “better for you” snacks, but orange dust-covered chips win out every time. PepsiCo revealed in a recent trade show in Atlanta that the company is being pulled in two different directions: the iconic, and usually unhealthy products of its classic lineup like Mountain Dew, Doritos, and Cheetos; and the healthier snacks of the future.
Unfortunately, even though the CDC has warned us of the skyrocketing obesity rate, customers prefer the salty, fatty bag of chips over a “better for you” replacement.
The acquisition of healthier brands like Naked Juice and Sabra hummus has not been as fruitful as originally expected. “PepsiCo Inc. fell behind the goal it made in 2010 to triple revenue from nutritious products to $30 billion this decade,” the Wall Street Journal analyzed.
PepsiCo has in fact seen a sales increase over the past 15 quarters, and its stock price set a record high this past July. But the favorable sales has been largely due to the popularity of fattening brands, which are churning out brand new flavors and products like the loaded jalapeno frozen bites just released by Dorito.