PURCHASE, N.Y. -- The timing of Amazon's acquisition of Whole Foods couldn't have been better for PepsiCo's Frito-Lay division.
The snack giant has begun rolling out 11 core chip brands under its Simply line, meaning consumers can now purchase many of their favorite salty snacks without artificial ingredients and other organic attributes. The new line, created in part to break out of traditional snack aisles and into organic and specialty stores, now meets the criteria needed to be sold in Whole Foods, according to a recent report in Bloomberg.
"The notion of clean and simple is very important to a segment of consumers," Jennifer Saenz, Frito-Lay CMO, told Bloomberg. "They're searching for that."
There's also new pressure to get into Whole Foods now that Amazon has taken over. The e-commerce giant is expected to use the chain to support its food-delivery business while building market share with price cuts and a more efficient supply chain.
Click through to see how Frito-Lay is hoping to use its Simply line to break into the chain as well as make important inroads with its customer base, which is looking for healthier options across all in-store categories ...
In addition to Simply Organic Doritos, Frito-Lay also offers Simply Cheetos Puffs. This and other Simply products are already sold on Amazon. And while pre-Amazon Whole Foods might have turned away large consumer product goods (CPG) manufacturers, many suppliers are hoping Amazon has different ideas.
"Amazon's acquisition makes it much more likely that Whole Foods will carry these better-for-you brands, even if they're made by large incumbent CPG players," said Sanford C. Bernstein & Co. analyst Ali Dibadj. "The smaller brands just can't keep up with the spending and velocity required from Amazon anymore. We expect Whole Foods to carry more—and more big brands too."
Another of the 11 core chip products under the Simply umbrella, Simply Lay's is an artificial-ingredient-free version with sea salt.
PepsiCo is working across categories to appeal to the type of shoppers who frequent Whole Foods. Indra Nooyi, CEO of PepsiCo, has discussed in the past how important better-for-you products are for the company's food and beverage portfolio. Last year, the company released organic Gatorade, and it expects to continue adding brands to the Simply lineup going forward.
"Some of the feedback we hear often is, 'An organic Dorito? Really?' " Saenz said. "We want to make sure that the credibility is coming through loud and clear."
In addition to Lay's, Cheetos, Doritos and Tostitos, Ruffles also has a product under the Simply umbrella.
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