Word: fritos
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Dates: during 2000-2009
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...lightweight in the nonsoda segment of the beverage business. To keep up its momentum, Coke recently bought a 40% stake in Honest Tea, an organic-bottled-tea upstart. Pepsi, which owns Gatorade and Tropicana, was already well positioned, so it steadily ramped up its focus on snack foods. Its Frito-Lay division now accounts for 56% of Pepsi's annual retail sales. Over the past decade, that product diversity has helped Pepsi catch up to its rival. This year, though, rising commodity costs in the first three quarters have temporarily burdened Pepsi's diversification...
...Reducing the size of products as a way of increasing prices is not new. Frito-Lay cut the amount of chips in their bags and Poland Springs reduced its water cooler jugs from 6 to 5 gallons years ago, all while keeping prices the same. Still, says Chris Waldrop, director of the Food Policy Institute at the Consumer Federal of America, "What's going on now is definitely reflective of rising food costs and rising fuel costs." Waldrop says he doesn't blame manufacturers for taking the step to protect their bottom lines, but says the food companies should...
Turns out trans fats weren't the only problem with potato chips. Frito-Lay, after realizing that its factories burn enormous amounts of energy, plans to take its Casa Grande, Ariz., facility off the power grid. Scheduled for 2010, the new design is capable of reducing electricity and water consumption 90%. Parent corporation PepsiCo's CEO says the company will be content to reach even 50% of the program's potential. Here's the plan...
...Frito-Lay plans to develop 50 acres (20 hectares) of solar concentrators to power the factory using energy from...
...than they have eaten, and they have traditionally shown some resistance to the premiums they have had to pay for "healthy." And haven't snack-food companies like Pepsico proved that you can have it both ways: indulgent treats and "healthy" snacks, each commanding fat profit margins? Pepsi's Frito Lay North America division had 24% operating margins last year, easily exceeding Danone's 14% ops margins on fresh dairy products...