Americans stuck at home snack food has become a valuable commodity for the pandemic stress consumer Frito-lay a subsidiary of Pepsico and one of the largest snack food makers has seen sales surge the company produces over 1200 different snacks including brands like Cheetos, Doritos lays smart food and ruffles in early 2021 Frito-lay north America announced 2020 fourth quarter net revenue of 5.4 billion dollars a 5 increase from a year earlier from a product perspective variety seems to be uh very important um people are seeking more snacks they’re snacking percent more right now than pre-pandemic the snacking industry uh you know was kind of growing low to mid single digits humming light right along and then the pandemic just gave it this explosive growth with the stay at home trends and it’s not just free delay it is seeing a boom in its snack business north American sales of savory snacks like chips popcorn and pretzels climbed to 56.9 billion dollars 2020 in 11 more than 2019 in stressful times people turn to snacking for comfort and kopit 19 has transformed kitchens across the US into giant vending machines so has coveted 19 put an end to the shift to healthier snacks.
The great depression in 1932 for a hundred dollars Charles Elmer doolin purchased a recipe a handheld potato ricer and over a dozen retail accounts from a corn chip manufacturer selling corn chips out of his car by day and cooking out of his mother’s kitchen by night doolan soon expanded to the family’s garage and later to the west coast he named the business the Fritos company.
That same year Hermann lay started a snack food delivery company in Nashville Tennessee by 1956 lay had more than 1000 employees and was the largest manufacturer of potato chips and snack foods in the US the two men joined forces in 1961 to form the frida lake company and quickly made plans to expand even further in 1965 Friday merged with Pepsicola to form Pepsico combining the soft drink giant with a salty snack maker the union made lays the first nationwide potato chip brand by 2008 Friday had a 57 share of the US potato chip market the company kept busy churning out new recipes in 1966 Friday launched doritos tortilla chips in 1981 the Tostitos brand and in 1992 it added flamin hot flavoring to the menu well this is in fact the number one for full stop flaming hot as a flavor and Americans were consuming snacks like never before from the late 70s through the late 2000s the number of people who had at least one snack a day in the us surged from 59 percent to 90 and the amount of snacks they consumed doubled free delay relies on a mix of clever marketing schemes social media influencers and celebrities in 2019 the company enlisted chance the rapper and the backstreet boys a 2020 advert starred hip-hop artist post Malone and since the start of the pandemic Frito-lay has made moves out of the grocery store aisle as well in may 2020 Pepsico launched snacks.com for consumers to purchase items directly from the company.
According to a 2020 study by mondelez international about 90 percent of adults surveyed said covid 19 has enticed them to snack more about 60 percent of people said snacking will be their new normal after the pandemic ends that trend has added a boost to the bottom line of most of the biggest makers of snacks including hostess brands Hershey kellogg company mondelez international nestle and of course free delay sales of snacks in north America reached 133 billion dollars in 2020 seven percent higher than a year earlier with Americans turning to their kitchen pantries for relief hostess the maker of twinkies and ding dongs saw a net revenue surge 15 in to 1 billion dollars due in part to the strong performance of its vortman cookies and hostess brands.
It’s just accelerated the in-home behavior prior to the start of backyard barbecue season and summer camping trips Hershey saw a surge in the sale of milk chocolate packs used to makes mores Kellogg’s north American snacks division which includes Pringles and Cheez-it had organic growth of 3.3 percent in 2020 sales of 4.4 billion dollars mondelez international maker of Oreo cookies and Ritz crackers saw net revenue increase by 2.8 percent to 26.5 billion dollars in 2020. with a drop in demand for impulse purchases at the checkout counter nestle the maker of Kitkat saw weaker demand in its chocolate division offset by some momentum in the sale of baking products but it may have been free to lay that’s all the biggest gains with families stuck at home binging on Netflix and snacking on potato chips and popcorn Frito-lay north America had 20 20 net revenue of 18 billion 6.5 percent higher than a year earlier