PepsiCo announced second quarter 2020 earnings results on July 13. Here are a few notes about key trends in PepsiCo’s sales and what that means more broadly.
- Snacks, esp Cheetos, are up...consumers want comfort foods and with a lot of people -- particularly children -- eating at home, snacks are big
- Juices are up...consumers are looking for products with a health-halo, particularly if it boost the immune system
- Oats are up...not only are more consumers baking at home, but more are also eating breakfast at home and are looking for comforting and healthy foods
- Beverages, in general, are down...although beverage sales are up in grocery and dollar stores channels, the category is down overall because of weak business at convenience stores (that’s a grab-and-go business, but people aren’t out and about as much) and the closures or limited operations of restaurants, movie theaters, & sports stadiums
- Pepsi Zero Sugar and Bubly are up...consumers are looking for beverages with less sugar, as products that have more of a health halo compared to high-sugar options
Going forward, how can food and beverage companies continue to succeed and grow?
- Develop products – snacks, meal replacement bars, beverages, etc -- that focus on immunity. Probiotics, prebiotics, and antioxidant vitamins are immune system-boosting cues to consumers.
- Consider their new products that group popular snack brands and comfort foods. PepsiCo’s pipeline includes Cheetos mac and cheese – a combination of a popular snack brand and a beloved comfort food
- E-Commerce – it’s here to stay as contact-free ordering and home delivery are habits that are becoming sticky among consumers. PepsiCo developed their own e-commerce platforms to sell their food products directly; expect other big food companies to follow.
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research in the packaging industry, including new reports on Global E-Commerce Packaging and Global Foodservice Single-Use Products. Additional information is also available in food and beverage reports available from The Freedonia Group’s sister publisher Packaged Facts, including Food Carryout & Delivery, Food Carryout & Delivery: Special COVID-19 Consumer Insights, Food Market Outlook 2020: Home Cooking & Grocery Shopping in the Age of Coronavirus and Beverage Market Outlook 2020: Grocery Shopping & Personal Consumption in the Coronavirus Era. Freedonia Custom Research is also available for questions requiring tailored market intelligence