PepsiCo sees ‘tremendous growth’ [in] snacks, as well as mini-cans of its full-sugar products, CEO Ramon Laguarta said Tuesday during an earnings call.
Cause? “Portion control,” Laguarta said.
But sometimes you really want something sweet, salty or fatty, albeit in moderation. This is where smaller sizes come in handy.
“It’s becoming more and more clear that smaller packages really matter,” Duane Stanford, editor of Beverage Digest, told companies trying to reach more customers. “If you do it right, it’s definitely a win.”
Inexpensive snacks on the go
There’s another bonus for the company: When customers buy in smaller volumes, they typically spend more per ounce compared to a larger version of the snack or drink—sometimes significantly more. And as people return to their normal pre-pandemic daily routine, some are opting for snacks and sodas that can be eaten on the go, regardless of the relatively high cost.
“Since the pandemic, people have returned to busy schedules and are increasingly opting for convenient options that fit their lifestyle, including takeaways that can be easily transported,” said Claire Lancaster, Head of Food and Beverage at WGSN, a food service company. trend forecasting.
She noted that the demand for smaller foods could also be due to more snacking in general, adding that people are moving “to snacking throughout the day rather than three meals a day.”
Laguarta pointed to a variety of package sizes and prices as a way to keep consumers informed and drive sales.
Shoppers who can only afford small snacks today could become repeat customers tomorrow, Stanford agreed, as companies hope they will “stick to habits.” [their] product or even upgrade to more expensive versions.”