PLANO, Texas, May 19, 2020 /PRNewswire/ -- As Memorial Day
– the unofficial kickoff to summer – approaches, the majority of
Americans – 86 percent – anticipate their summers will be different
compared to last year in light of the COVID-19 pandemic.
Given that, Frito-Lay, maker of many of America's favorite snack
foods, issued the latest edition of its U.S. Snack Index, finding
snacks remain essential to summer, but with consumers increasingly
buying through new channels and eating snacks differently than ever
before. From minimal travel and socially distanced gatherings, to
when, where and how consumers shop for snacks – consumer behavior
is likely to have a lasting impact on the months ahead.
"Since the onset of the pandemic – what we eat, where we buy,
and how we engage with one another has shifted dramatically – and
we've had to reorient our business to address this," said
Steven Williams, CEO, PepsiCo Foods
North America. "Our ability to remain agile at the most critical
time has enabled us to successfully meet consumer demand."
Additional market trends and U.S. Snack Index highlights
show:
Summer gatherings evolve, but snacks are still a welcome
guest.
- Recent IRI data shows more than three-quarters (77 percent) of
Americans expect to make changes to their Memorial Day plans in
2020 – including 82 percent noting they'll stay at home.
- As such, people are adapting how they snack to fit their
changing plans, with 86 percent saying they will probably bring
snacks to a small group gathering and more than one in three (34
percent) expecting to do more virtual hangouts with friends over
the next few months.
As people continue looking for some level of normalcy, many
are turning to snacking.
- The Frito-Lay Snack Index found 85 percent of respondents say
eating their favorite snack makes them feel normal.
- While the overwhelming majority (83 percent) said their
favorite summer snacks remind them of good times and nearly half
(48 percent) said eating their favorite snack makes them feel
happy.
Although there are many differences this year – favorite
snacks are a mainstay and are seeing more demand.
- IRI retail sales data also shows salty snacks have been the No.
1 food item that's contributed to sales growth at retailers since
early March when consumers were shifting purchasing priorities amid
stay-at-home orders for various states.
- Frito-Lay has seen the same demand in its own sales data, as in
recent weeks consumers have increased purchasing snack items like
Lay's (up 32 percent), Cheetos Popcorn (contributing to 65 percent
of the ready-to-eat popcorn category) and Tostitos (up 42
percent).
Many are trying new snacks during the pandemic, with variety
and convenience helping in how they make their snack
choices.
- U.S. Snack Index survey data also revealed many consumers are
still trying new snacks (with 92 percent saying they plan to
continue to eat them once the pandemic is over) and about one-fifth
of respondents are developing new rituals around food.
- The most willing groups to try a new snack in the "new normal"
skew younger. Gen Z and millennials tend to be the most adventurous
with nearly four in 10 (36 percent) saying they are likely to try a
new snack option.
- When choosing snacks to enjoy during the summer, Americans
consider several important factors. The top deciding factor is
convenience (86 percent), and staying true to favorites (83
percent), with only 22 percent of respondents taking budget into
account.
- And, when they find their favorite snacks, they are stocking
up. Seventy-three (73) percent of respondents said they are likely
to buy more than usual in store.
Purchasing snacks online is on the rise, with younger and
higher income Americans more likely to try eCommerce, including
choosing to buy online from retailers via "Click and Collect" and
pick-up curbside.
- IRI data shows snack sales through eCommerce sites are up 44
percent since March 1.
- While consumers say in-store shopping during this time has been
stressful, they're still heading to the store. More than one-third
(37 percent) of respondents feel stress shopping for groceries
during the pandemic. However, U.S. Snack Index data showed
consumers still largely prefer in-person shopping with most survey
respondents (74 percent) saying that's where they look first for
their favorite snacks. IRI data also confirms the in-person
shopping preference for snacks as in-store sales of salty and
savory snacks each grew more than 15 percent in the last eight
weeks.
Snack availability, demand lead to new direct-to-consumer
channels.
- The global pandemic has further highlighted the need to
directly serve consumers, who have had difficulty locating their
favorite snacks in this challenging environment. In fact, less than
half (47 percent) say they can find all the snacks they want when
shopping.
- With this in mind, Frito-Lay recently launched Snacks.com, its
first direct-to-consumer offering that allows consumers to purchase
snack favorites and ship directly to their home.
"While summer may be a very different experience for Americans
this year, we expect Frito-Lay snacks will be there for consumers
in new moments of enjoyment and togetherness," Williams added. "Our
continued focus has been creating smiles with our snacks, even
during these challenging times."
For more information, visit: FritoLay.com/SnackIndex.
1Survey Methodology
This poll was conducted by Morning Consult between May 1-4, 2020 among a national sample of 2,200
Adults. The interviews were conducted online, and the data were
weighted to approximate a target sample of Adults based on age,
educational attainment, gender, race, and region. Results from the
full survey have a margin of error of plus or minus 2 percentage
points.
About Frito-Lay North
America
Frito-Lay North America is the
$17 billion convenient foods division
of PepsiCo, Inc. (NASDAQ: PEP), which is headquartered in
Purchase, NY. Learn more about
Frito-Lay at the corporate website, http://www.fritolay.com/ and on
Twitter http://www.twitter.com/fritolay.
About PepsiCo
PepsiCo products are enjoyed by
consumers more than one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more
than $67 billion in net revenue in
2019, driven by a complementary food and beverage portfolio that
includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana.
PepsiCo's product portfolio includes a wide range of enjoyable
foods and beverages, including 23 brands that generate more than
$1 billion each in estimated annual
retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in
Convenient Foods and Beverages by Winning with Purpose. "Winning
with Purpose" reflects our ambition to win sustainably in the
marketplace and embed purpose into all aspects of the
business. For more information, visit www.pepsico.com.
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SOURCE Frito-Lay North
America