PepsiCo adding healthier snacks as consumers shun salt and fat

Amid a national debate on highly processed foods and the rise of weight-loss drugs, PepsiCo is responding by offering healthier versions of some snacks.

Early Tuesday, the company reported that revenue in the fourth quarter slipped modestly to $27.8 billion from $27.9 billion a year earlier, while net income rose to $1.5 billion from $1.3 billion. For the year, revenue climbed slightly to about $91.9 billion from $91.5 billion, while net income rose to about $9.6 billion from $9.1 billion a year earlier.

For the quarter that ended Dec. 28, volumes for PepsiCo's Frito-Lay business in North America, which, at $7.3 billion, accounts for about a quarter of PepsiCo's total revenues and is home to popular munchies like Doritos and Cheetos, fell 3%. Volumes for the Frito-Lay business have fallen for five consecutive quarters.


Executives at PepsiCo attributed part of the declining volumes in the category to inflationary pressure felt by some consumers. In response, the company said, it plans to offer more snacks at different price points, including smaller counts of its variety boxes.

But executives also said salty snack demand was down because consumers were focusing more broadly on health and wellness.

In response, PepsiCo said, it is moving to offering smaller portions as well as snacks made with lower sodium and fat and fewer artificial ingredients.

Besides offering healthier versions of some popular snacks, executives at PepsiCo said they were looking to adapt to changing consumer preferences by adding protein to various food and beverage products where they could. Its Quaker Oats division, for instance, now offers cereals with additional protein.

As another example of its push into healthier snacks, PepsiCo acquired the remaining 50% stake in Sabra Dipping, a manufacturer of hummus and other snacking dips, that it didn't already own from its joint venture partner.