US Snack Food Giant Pledges Marketing Boost

28 February 2005

Snack food giant Frito-Lay North America hopes to expand its horizons without expanding waistlines as it bids to grab market share for its smaller brands.

The company, a division of PepsiCo, will double its marketing spend this year to reposition core brands such as Doritos and Lays, and to increase its 15% slice of the macrosnacks business - cookies, crackers and candy. Frito-Lay has a 65% share of the US $15 billion (€11.3bn, £7.8bn) a year salty snack market.

In common with other food companies, Frito-Lay is under pressure from the obesity police, but some of its healthier snack bars and breakfast snacks using the Quaker Oats brand name have struggled.

Ceo Irene Rosenfeld, formerly a Kraft Foods executive, says the company has begun testing Sun Snacks, a new line of organic chips and cheese puffs made with sunflower oil. She has pledged to pump more money into smaller products with high-growth potential, such as Sun Chip multigrain snacks, nuts and salsa.

Data sourced from Wall Street Journal Online; additional content by WARC staff