Frito-Lay Expects Sales to Tip toward More Healthful Lines

Company plans to revise 60 percent of its brands before next fall, making them healthier than its traditional lines.

May 10, 2010

DALLAS - Frito-Lay Inc. announced plans to revise its offerings to make 60 percent of its brands healthier than its traditional lines before next fall, the Dallas Morning News reports.

By the middle of next year, the company intends for half of its sales to come from products without MSG, artificial colors or artificial flavors. That??s more than twice its current level, according to Al Carey, president and CEO of Frito-Lay. Additionally, by the end of next year, the company??s flavored potato chips, excluding Lay??s Classic, will contain 25 percent less sodium on average.

"It's an evolution," said Carey. "Next year will be a big year for us. We'll make substantial changes in our 'better for you' products."

Noting that consumers are more focused on eating healthful foods, Indra Noovi, CEO of PepsiCo, the parent company of Frito-Lay, said that the transformation of its brands is critical to sustain top-line growth" She said that the company has the potential to triple its "healthier" food and drink business to $30 billion globally by 2020.

The majority of Frito-Lay??s changes will involve ingredients and procedures, such as adding salt later in the cooking process. Earlier this year, the company launched six flavors of chips with reduced sodium that have been selling 30 percent ahead of projections.

Carey said the company is also assessing technology that could "take total fat levels down by 40 percent," and he said that the company plans to get saturated fat levels down to 1 gram or below on its snacks.

"My objective is in three years that all of our products will be either 'better for you' or 'good for you,' " Carey said.

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