PepsiCo Boosts Protein Snacks Amid North America Sales Decline

PepsiCo is aggressively shifting its focus toward healthier snacking options, emphasizing products with natural ingredients, added protein, fiber, and smaller portion sizes to meet evolving consumer demands. CEO Ramon Laguarta highlighted that their "permissible" snack portfolio, which includes brands like SunChips, PopCorners, and Simply, now generates around $2 billion in annual sales and is becoming increasingly significant to the company. PepsiCo plans to relaunch major brands such as Lay's and Tostitos without artificial dyes or flavors by the end of 2025, with Cheetos and Doritos to follow, aligning with the trend for cleaner-label products. The company is also investing in protein-rich beverages and snacks, noting a rapid consumer adoption rate for protein solutions, and aims to leverage these innovations to reverse declines in North American snack sales. Despite recent dips in snack and beverage volumes domestically, PepsiCo remains optimistic about growth driven by health-focused products and is enhancing its portfolio with brands like Siete Foods and Sabra. Additionally, PepsiCo is harnessing AI and data analytics to improve pricing strategies and expand high-margin channels, positioning itself well for the future of the healthier snack and beverage market.